Oil Penny Stocks To Buy

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Oil Penny Stocks To Buy

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With oil making headlines, let’s take a look at how to find oil penny stocks to buy – PowerPoint PPT presentation

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Title: Oil Penny Stocks To Buy


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Penny Stock Research
Oil Penny Stocks To Buy
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  • Welcome to Penny Stock Research. Every day we
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  • Hi, My name is Aaron and Im with Penny Stock
    Research, today were reviewing our recently
    published article

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  • Oil Penny Stocks To Buy

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  • As 2015 rapidly heads towards the exits, the
    financial news has shifted towards the plunging
    price of oil. The somewhat surprisingly collapse
    of oil prices has given investors something to
    focus on besides the Fed and interest rates.

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  • Is cheap oil a good thing or a bad thing? Its
    actually a bit of both, but thats not our focus
    this time around. With oil the cheapest its been
    since the financial crisis of 2008, it definitely
    makes sense to take a closer look at black gold.

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  • Is there opportunity there, or should we stay far
    away? How are penny stocks impacted?

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  • More importantly, what are the oil penny stocks
    to buy?

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  • Take a look at this chart of West Texas Crude Oil

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  • The chart of crude oil shows how black gold has
    done this year. Prior to the summer, it actually
    hit 60 per barrel for a couple months. However,
    the price has since plunged, and is now trading
    well below the 50-day moving average.

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  • Whats more, the price of oil has taken a sharp
    turn below the 40 mark. That level seems to hold
    some significance among oil traders/investors as
    a sign oils bear market will continue.

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  • So whats this tell us about oil penny stocks?

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  • Heres the thing
  • Penny stock oil companies tend to be in the
    development stage. Theyre generally focused on
    setting up operations to get oil out of the
    ground. They are highly unlikely to be cash flow
    positive.

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  • Development companies are already risky
    propositions because of the variety of factors
    and risks associated with the business.

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  • Now, throw in ultra-cheap oil prices and you can
    see why finding a good oil penny stock is going
    to be extremely difficult. You see, more
    sophisticated methods of oil extraction
    (fracking, offshore drilling) are expensive.

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  • It already costs substantially more than the
    current price of oil (around 35 per barrel) to
    produce. As such, Id definitely avoid investing
    in those types of oil drillers right now.

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  • More traditional oil drillers (land-based,
    non-fracking) do exist, but theyre harder to
    find. Most of the low hanging fruit has already
    been gobbled up. And, if these companies do
    exist, theyve probably been purchased by bigger
    players.

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  • So how can you make money buying oil penny
    stocks? Bottom line is, you have to be extra
    picky. Try to find a company which is cash-flow
    positive and has lower expenses compared to
    others in the industry.

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  • The stock should only be down because of the
    price of oil and nothing that has to do with
    operations. This is the type of company which
    will see a boost in its share price when the
    price of crude oil recovers.

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  • However, dont expect oil to rebound anytime
    soon. Any investment in oil penny stocks should
    be considered a long-term purchase.

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  • Nevertheless, if you find the right companies and
    are willing to wait, these investments could be
    huge winners down the line.

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