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PeakOil is You

THE US Fossil Fuel Stockpiles Thread (merged)

A forum for discussion of regional topics including oil depletion but also government, society, and the future.

Postby RealJoe » Fri 29 Jul 2005, 03:42:39

I read your warnings after just getting back from a renewable energy meetup meeting. Let me say that people need definitely to take responsibility for their finances (and their lives!), and investing with caution, intelligence and foresight definitely is a part of that. Scam artists will always develop rackets based upon the hot trends of the day and people need to be remain alert and skeptical.

I hope people don't get scared off of investing into renewable energy however. The leading technologies and companies offer some truly fantastic possibilities for growth in the future- greater probably than IC chips and personal computers were in the early 1980s. With common sense and only a little bit of boldness, investors could well find themselves on the ground floor of businesses that will multiply ten-twenty-fiftyfold.

Of course, perhaps one of the best ways to invest would be into one's own home by making it more energy efficient. Distributed energy will be cost-economical as well in the near future, not to mention the peace of mind self-sufficiency and freedom from the grid pv arrays and small wind can give a person.

Finally, besides some oil stocks and precious metal trusts, I am not sure I would recommend that anyone hold a lot of paper equities in the future, not stocks or bonds. When the superspike in oil prices happens (breaking the $100 a barrel for light crude), a mass psychological denial will be breached and we can essentially expect the stock market to tank to realistic price to earning ratios (current stock prices are on average about two to three times these historical ratios). Myself, I doubt the superspike in oil prices is more than three years away and probably less than that.

I think this warning goes doubly for US citizens like myself who should expect the dollar to continue to lose purchasing power (valuation) at substantial rates in the next few years. In terms of investments, we are probably better off collecting aluminum cans than buying stock certificates.
Last edited by RealJoe on Sat 30 Jul 2005, 03:21:59, edited 2 times in total.
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Postby I_Like_Plants » Fri 29 Jul 2005, 04:22:26

Oh yeah, the decline is going to be a GREAT time for fraud from perpetual-motion machines to stock fraud, it's going to be a wonderful time for the crooked.
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Postby Eli » Fri 29 Jul 2005, 10:41:45

again the stock has risen in after hours trading.

What I am saying is it will close at 68.30 then in the morning it will open at 69.25 that is a a massive jump for over night.

My bet is somebody is moving large money into the stock after hours so as not to cause a jump during the day in share price.
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Postby LadyRuby » Fri 29 Jul 2005, 11:51:51

$this->bbcode_second_pass_quote('Eli', 'a')gain the stock has risen in after hours trading.

What I am saying is it will close at 68.30 then in the morning it will open at 69.25 that is a a massive jump for over night.

My bet is somebody is moving large money into the stock after hours so as not to cause a jump during the day in share price.


We moved some funds and they don't move them until, I think, 4:00 EST, so it may not be reflected until after trading hours.
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Postby Eli » Fri 29 Jul 2005, 12:00:08

Yeah that is what I am talking about lady.

It could be indidual investors moving mutual funds into energy funds. But these are large movemnets of money after hours it is very interesting to see.
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Postby MicroHydro » Fri 29 Jul 2005, 14:04:12

$this->bbcode_second_pass_quote('RealJoe', 'I') hope people don't get scared off of investing into renewable energy however. The leading technologies and companies offer some truly fantastic possibilities for growth in the future- greater probably than IC chips and personal computers were in the early 1980s. With common sense and only a little bit of boldness, investors could well find themselves on the ground floor of businesses that will multiply ten-twenty-fiftyfold.


Agree. My alternative energy stocks in real companies have dramatically outpreformed the broad markets. But I had to do a lot of research to find solid companies with bright futures. In addition to the good PV companies above, I like Vestas Wind Systems of Denmark. They have 34% of the entire world market and are growing rapidly.

$this->bbcode_second_pass_quote('', 'O')f course, perhaps one of the best ways to invest would be into one's own home by making it more energy efficient.


Big agree.

$this->bbcode_second_pass_quote('', 'I') am not sure I would recommend that anyone hold a lot of paper equities in the future, not stocks or bonds.


Agree here too. Only 10% of my life savings are in stocks, but it does feel righteous to be financially supporting alternative energy development, if only in a small way. It just pisses me off that all the scam artists are moving into alternative energy now, which will give the sector a bad name.
"The world is changed... I feel it in the water... I feel it in the earth... I smell it in the air... Much that once was, is lost..." - Galadriel
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Postby qwanta » Fri 29 Jul 2005, 15:14:44

guys, VDE is an ETF (exchange traded fund), it's made up of a whole bunch of stocks:

VDE holdings

VDE moves as its underlying stocks move, like an index. So, noone's doing any manipulation on it if that's what you're implying.... I own VDE too, and I'm enjoying the ride hopefully it'll last :-D
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Are energy stocks propping up the market?

Postby LadyRuby » Thu 11 Aug 2005, 16:44:29

I'll start by admitting that I don't know anything about the stock market. That said, it seems irrational to me that despite clear (to me) evidence of increased energy costs and potential shortages the stock market is holding up pretty well. I assume the energy industry is a relatively small portion of the stock market, but to what degree might the increase in energy stocks be propping up the market?
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Re: Are energy stocks propping up the market?

Postby Colorado-Valley » Thu 11 Aug 2005, 16:57:45

The stock market is being held up by a war economy, massive spending and massive government and personal borrowing.

And Greenspan is throwing a "Hail Mary" by keeping interest rates artificially low.
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Re: Are energy stocks propping up the market?

Postby Jack » Thu 11 Aug 2005, 17:50:06

The stock market is being held up by a couple things...

1) No other game in town. Yields on alternative liquid instruments that meet requirements for pension funds, individual retirment (IRA, 401K, etc) and other savings and investments are quite low. Net yield after inflation and taxes is on the order of 3%. Thus, the stock market is perceived as a good alternative.

2) Ignorance. The last true bear market ended in October, 1974. So anyone a day under 50 - or, more likely, 60 years old - has never experienced a true bear market. For the entire span form October 1974 to March 2000, the theory of buy-and-hold has proven correct. No matter what happened, if you just held on, the market would appreciate. Arguably, the bull market ended in 2000 with the end of the dot.com bubble; but people don't accept that we've transitioned from a bull market to a bear market.

If you'd like a great book on the subject, please let me suggest "Bullseye Investing" by Mauldin.
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Big oil companies & stock prices

Postby caysal » Mon 12 Sep 2005, 12:55:06

Hello, would someone communicate their opinion about what will become of the share price of big oil companies like Exxon and BP over the next 6 months to a year?
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Re: Big oil companies & stock prices

Postby pip » Mon 12 Sep 2005, 14:17:29

I own a bunch of VLO. I am expecting $150 in the next six months. A bunch of analysts upgraded refiners last week. The hurricane caused enough product supply problems to keep business good for several months. Additionally, there are new EPA rules on gasoline and diesel sulfur coming out next year that will further limit supply.
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Re: Big oil companies & stock prices

Postby shakespear1 » Mon 12 Sep 2005, 15:31:40

Do a search on MSN Money sight with words such as oil, petroleum and you should find some interesting artcles to get started.

In particular look at Jubak's articles

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Re: Big oil companies & stock prices

Postby BW3 » Mon 12 Sep 2005, 16:33:35

It appears that most of the big oil companies stocks are worth about the price of one barrel of sweet light crude. Where is the price of crude going to be in 6 months or a year?
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Re: Big oil companies & stock prices

Postby CARVER » Mon 12 Sep 2005, 17:27:51

$this->bbcode_second_pass_quote('BW3', 'I')t appears that most of the big oil companies stocks are worth about the price of one barrel of sweet light crude. Where is the price of crude going to be in 6 months or a year?


I don't know about that one, but another similarity would be that I think light sweet crude oil production and the amount of big oil stocks peaked at about the same time, because the big oil companies have been buying back massive amounts of stocks for a while now :)
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Massive Selloff of Energy Stocks

Postby Heineken » Thu 13 Oct 2005, 12:06:35

The stock market is as crazy as it is stupid. Suddenly oil and gas are worthless and nobody wants 'em! For example, Anardarko Petroleum, an already very cheap company with a forward p/e well under 12, is down about $6 as I write.

I'm buying with both fists.
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Re: Massive Selloff of Energy Stocks

Postby strider3700 » Thu 13 Oct 2005, 12:30:46

damn I'm getting stomped on madmoneychallenge over oil today. It's nice to know that it's not real money when I see nothing but red.
shame on us, doomed from the start
god have mercy on our dirty little hearts
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Re: Massive Selloff of Energy Stocks

Postby OilsNotWell » Thu 13 Oct 2005, 12:40:11

In my opinion, we are seeing an all-out assault on O&G issues to pound em down and keep em down....
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Re: Massive Selloff of Energy Stocks

Postby Heineken » Thu 13 Oct 2005, 13:28:48

. . . or to pound them down so that the pounders can buy them back cheap.
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Re: Massive Selloff of Energy Stocks

Postby OilsNotWell » Thu 13 Oct 2005, 13:42:07

Yes, Heiny, yes, you put a finer point on it...

Why? Because they need to cover their shorting I think..What a house of cards...
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