Jim Paplava on Oil Prices

[dan_s]

Dr. Joseph Dancy, a professor at SMU and an EPG member was interviewed yesterday on the outlook for crude oil demand next year by Jim Puplava of the FSN network. His points:
1. IEA, EIA, and OPEC see global crude oil demand increasing next year by nearly 1 million barrels per day
2. Global oil demand should hit record levels, which should support prices
3. Most of the increased demand will be generated from China, India, and Asia
4. Stock prices in the energy sector have lagged the market this year by quite a bit
5. The mis-valuation of energy stocks are as extreme as we have seen in 30 years (I strongly agree with this point. I have never seen E&P stock prices trade this far below their break-up values for this long. I believe this is a repeat of 2010 when we saw a significant run up in E&P stocks during the 4th quarter as the market became more convinced that high oil prices were going to hang around. Plus, this year we also have natural gas prices firming up. - Dan)
6. We are shocked we have not seen more merger and acquisition activity in the energy sector due to the gross under valuations of many energy company stocks (I believe this is a result of the large banks being extremely risk adverse. - Dan)
7. Due to the powerful trends I have almost my entire personal portfolio invested in energy and agricultural firms (the LSGI Fund is more diversified)
The interview can be accessed at the following link:
www.lsgifund.com/LSGIRMK/fsn2012_09_dancy.mp3

[prince_jake_33]

I wonder if Dr. Darcy would tell us which agricultural stocks he finds interesting. thanks bob jacobson

[dan_s]

Check the link on the lower right side of our home page to LSGI Fund. That is his hedge fund. I think it mentions a few small-cap ag companies.