If you’re at all interested in oil as an investor, you already know the recent and current standing of the sector.
Oil stocks had been overpriced for a while, and when they started to slip it took them awhile to catch their grip. That drop also impacted other commodities and stocks linked to oil in some way.
But when a significant fall like this occurs, the savvy investor realizes the potential to grab great stocks at rock-bottom prices…
That loud ‘bang’ you heard not too long ago was the sound of the oil sector falling. Hard. But that isn’t necessarily a bad thing for smart investors.
Sure, if you held on to oil stocks through the drop you got hurt. And you also desperately need Stock Code Breaker, which would have kept you from losing your shirt, but now isn’t the time to get into that.
In any case, there’s now an opportunity to get rich as the oil sector and its closely related brethren pick up the pieces.
The trick will be finding the survivors—the oil related stocks that don’t need the rest of the industry to prop them up, the ones that have the growth to sustain themselves, and the stocks that resisted the fall the hardest.
Since the summer, oil prices have fallen roughly 50% in general. That leaves us with a host of recently high stocks at much lower prices. So how do we pick out the few stocks that have the best chance to rise the fastest and furthest?
I’ll be using several indicators and tools, but most of all I’ll be looking at the insiders. The different CEO’s and other officers will know best how their company and stock will react.
If the insiders bail you can count me out. But if the insiders start buying particular stocks in a big way, I’ll happily start my investigation of them.
