RE:RE:RE:RE:RE:RE:RE:Random Thoughts Sectors go in and out of favor. The S&P 500 trades at a 21 PE. The energy sector trades at 12.
Government debt is massive, everywhere. Governments have three options: pay the debt, default on it, or inflate it away. Government always chooses the inflation route. Always. Fairly massive inflation is coming over the coming decade, it is easy to see inflation hedges (commodities, in other words) selling at a premium. Not hard to see a well managed medium sized energy company, like TVE, in an inflationary environment more marked than presently perceived, get $150 oil (die to inflation only), have $4 per share of profit, and a PE ratio of 25-50. Yeah, I think TVE, if still independent, is over $100 in 2030.
Incidentally, if you want a guaranteed investment, US nickels have roughly 7 cents of copper and nickel in them, yet sell for 5 cents. The situation resembles silver in 1965, when the US went to clad coinage. Few saw the benefit of collecting silver coins at face value, but those who did and sold 15 years later at $50 silver did well. That's how I see energy at present.