Buy Low and Sell High

[dan_s]

"With the exception of retail, hydrocarbon equities are the most hated sector in the market right now. It won’t take much for sentiment to change and oil prices to lurch higher. Right now is the time to lay some contrarian bets on select oil companies." - Christian DeHaemer, Energy & Capital

The supply/demand fundamentals for oil are tightening and at a fairly rapid pace.
U.S. natural gas and NGL markets are already tight and getting tighter.

Q2 results are going to be decent; all of our Sweet 16 are expected to report positive earnings for Q2.

I cannot remember when the market has been so negative on the upstream oil & gas companies.

We've had three very large weekly draws from U.S. crude oil storage in a row; yet the oil traders have kept a lid on oil prices. This is starting to look more and more like a spring that is being pressed tighter and tighter.

The 4th quarter of 2010 was the best quarter ever for the Sweet 16. It may be challenged this year in Q4.