Oil and Gas Stocks at Discount Prices

Oil and Gas stocks are not always available at discount prices, especially when they exhibit great qualities like two I’m going to share with you today. Before I share these two names, let me give a couple words of caution. As always, we buy the rise, so until they show signs of rising they may simply get cheaper. You don’t want to try to catch them on the way down. A 50% discount is only good if they go up from there, not continue down to a 75% discounted rate. So be cautious about buying these stocks just because they are “on sale.” Second, these are not recommendations… as I never recommend stocks. But I don’t mind revealing what I’m doing… and I’m adding these to my watch list. I’ll take a quick look each evening and take small risks by placing purchase orders above the previous day’s high. Well, let’s take a look…

Tourmaline Oil Corp.

One of my favourite companies on the Canadian stock exchanges is Tourmaline Oil Corp. Highlighted in the top 5 Canadian Stocks here at Invest in the Markets, TOU.TO is trading at a 52 week lows. Now there is always risk in purchasing stocks that are near 52 week lows because you don’t know if they’ll simply continue downward even further which is why wise investors follow the rule: buy the rise. Nevertheless, TOU.TO continues to increase revenue and production under the experienced leadership of Michael Rose. So what’s hurting this company? The deflating natural gas prices… so one way to watch for a bottom in this company’s share price is to watch for a bottom in natural gas prices. Then be prepared to act accordingly.

Painted Pony Petroleum

Painted Pony Petroleum or PPY.A.TO is a junior oil and gas company. Similar to TOU.TO, it’s stock price has been tarnished by the broad brush of the falling natural gas prices. But the fundamentals of the company have not changed, making it a great deal for investors going forward. If you simply watch the technicals, 99% of which lag the price, you’ll be left behind on this name. So, like TOU.TO, watch the natural gas prices to determine where and when this company is poised for big gains.

Oil and Gas Stocks at Discount Prices

There are always opportunities in the markets… and these two companies are great examples of these golden opportunities. However, they also demonstrate the flaws of the traditional buy and hold approach to investing since buying this stock at the peak and holding it today would have cost you dearly. Timing is important, even for long-term investors. Instead, wait for some upside confirmation demonstrated by price and volume, the only real time indicators, and you’ll be poised to make money in the markets every day. For now, create a watch list if you don’t already have one and add these two names to it. It’s not everyday that you get Oil and Gas stocks at such discount prices.

  1. Interesting post. I have never considered investing in commodities before, but your argument is very convincing.
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  2. I am doing some research on commodities now. Which one you prefer for holding till next 5 years? gas?
    SB @ One Cent At A Time recently posted..Top 10 Personal Budgeting Tips for New YearMy Profile

    • GOLD – a commodity, currency, and unique asset owned by individuals, firms, professional advisors, and governments across the world. Gas would be lower on my list, but that doesn’t mean it can’t be a good trade!

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