POO has tanked and I've said $50-$65 range for next few months. After that who knows. AUD may break 80c but not by much is my thumbsuck. If you believe crude/NG/LNG is about to rebound strongly now is a good time to buy. So what are the best oilers on ASX?
My picks (with SP at yesterday's close) are:
1st tier: DLS @ $0.72. I've recently bought into DLS. It's the only oiler i own. Best of the bunch by some distance imo and underpriced. Buy 65-72c range.
SEA: Hard to know when/where SP massacre will stop but surely good value at current SP of 43c. I rate below DLS but def worth close consideration in 40-45c range. Am watching with interest.
2nd tier: WPL $35.39 and BPT $0.89. Can't split them by much. If you have faith re POO/NG then now may be good opportunity at current prices/further weakness. Not for me but have merit.
I wouldn't buy anything in 3rd & 4th tier for quite some time as feel risk is too high. Have suggested a buy price to wait for.
3rd tier: ORG $10.91, STO $7.16, $7.15. ORG has utilities section hence less risk than some but way overpriced. Buy at $7.60. STO has fallen far more than others and possibly worth a look at around $6.40 mark. OSH worth about 20% less so look to buy near $5.60. Don't depend on divs being maintained for these stks unless energy price improves.
4th tier:
That's my take. Comments welcome.
STO Price at posting:
$7.46 Sentiment: None Disclosure: Not Held
WPL Price at posting:
$35.39 Sentiment: Hold Disclosure: Not Held
DLS Price at posting:
72.0¢ Sentiment: Buy Disclosure: Held
