Is It Time to Buy Oil Stocks?

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Is It Time to Buy Oil Stocks?

Is It Time to Buy Oil Stocks?By www.ProfitableTradingTips.com http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks Now that oil prices have bottomed out is it time to buy oil stocks or are there still oil companies that are overpriced?http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks In general, energy stocks have taken a beating and are trading at levels appropriate for current oil prices.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks Click the links below to get your FREE training materials.

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Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.http://www.candlestickforums.com Before We Continuehttp://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks The exceptions are a group of Canada oil stocks.bloombergreports the story.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks canadian energy companies are trading at record valuations, signaling their shares havent caught up to the reality of crude oils continued decline.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks suncor energy inc., canadian natural resources ltd. and other stocks in the standard & poors/tsx energy sector index are priced at 65 times expected earningshttp://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks an all-time high and more than double the average of u.s. peers, according to data compiled by bloomberg.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks those valuations sit in contrast to crude, which touched $42.03 a barrel for the u.s. benchmark last week, the lowest since march 2009.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks as surging crude output strains storage facilities and pushes prices down in the u.s., canadian producers are cutting thousands of jobs and reducing spending to weather the rout. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks high valuations suggest that might not be enough to help support earnings which are projected to drop 24 percent for the group in the second quarter from the first, according to data compiled by bloomberg.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks It seems obvious that these stocks are overpriced, but what do investors in and traders of these stocks know that the rest of the market does not?http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks The Crack Spreadhttp://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks Value walk offers an opinion aboutundervalued oil stocks.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks even though everything related to oil sold off, there is one group in the oil sector that has differentiated itself - oil refiners. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks thats because instead of it being an even match, there is a spread in the market that is stacking the odds in the refiners favor and now is the time to jump in.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks its known as the crack spread - the difference between the price of crude oil and the refined oil product (like gasoline). http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks this is basically what sets the tone for oil refiners profit margins as they sell the refined oil for a higher price than the crude.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks as the price of oil fell, oil refiners fell right alongside them because the crack spread tightened. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks but that has started to change dramatically in march. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks while crude oil has slipped to new 52-week lows, prices at the pump havent followed suit.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks in fact, the national average for a gallon of gasoline today sits around $2.40, compared to an average of just $2.03 earlier this year. thats a significant tailwind for oil refiners.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks It would appear that there are profit centers in the oil industry that are pumping out money even while the overall picture would seem to be bleak.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks Is it time to buy oil stocks? Maybe the answer is yes if the company is a refiner.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks The Long Termhttp://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks If you interest lies in investing as well as trading you may be considering what bargains to pick up in the energy sector now that prices are at historic lows.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks Motley Fool poses an interesting question aboutdrillers or pipelinesas long term cash cows.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks the energy sector has gone through a huge amount of turmoil in recent months, as plunging oil prices have put some companies in jeopardy of suffering through a painful period of losing money. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks drillers have taken the biggest immediate hit, being the most directly affected by falling prices. http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks but some investors also worry about the prospects for pipeline companies, especially if dramatic production cuts reduce the need to transport energy products.http://profitabletradingtips.com/trading-investing/is-it-time-to-buy-oil-stocks As with all investing and trading working out the dollars and cents helps create substantial gains.