RE: Frackers Much lower nope I disagree , the world is not ending and fracking is increasing not decreasing . A lot of other industry's have such a bigger impact to the environment then fracking does its crazy . Fracking is just the most recent band wagon for some tree huggers to jump on . Forestry , mining , coal plants , oil sands all have a bigger impact then fracking does and they are going nowhere either.
Compare the valuations on the fracking companies to the drillers and other oil companies . The majority of them are down in the last few months not just frack companies . So much fear in the market right now its astonishing. Its half our battle is the constant fear out there . Maybe more companies would hire if there wasn't such pesimism. People worried about China. Population of 1.4 Billion only growing at 8% LOL . They thought the world would end if Greece defaulted , which they did ... and we are still growing . Now attention is turned to Spains bond auctions , The United States only exports 15% to Europe its not going to effect how much the market reacts to each bond auction. These stocks still have not priced in $100 oil that has been here for the last year and shows no signs of dipping much lower . The growth of India and Brazil are off the radar too right now . The hunger for oil is only increasing not decreasing.
The cloud around fracking will be lifted before year end is my bet and when it does it will be a fast move up . I will be paid a small dividend to wait . And adding when I can . If any of these companies were worried what so ever about the future , they wouldn't have huge capex going forward, buying back shares and raising dividend. The whole sector is getting beaten up . We will be higher by year end . Frack companies are amongst many MM top picks . When the rotation begins back into the energy sector the frackers will have the biggest moves . And I hope Obama's regulations on the industry come alot sooner then later. I will own best of breed with TCW and enjoy the ride up when it happens .