00:00 Speaker A
Great read by analyst Alistar Syme. His main point is that oil stocks still look undervalued, despite most of them catching a strong bid since the start of operation Epic Fury. The war should remind investors, says Syme as to the importance of oil to the global economy and how that importance is only likely to grow in the years ahead. His favorite stock pick on this is oil major BP. My question of the day is this, are oil stocks still undervalued? Which sector you think looks more attractive at these rates?
00:30 Speaker B
Mag 7 is is uh gotten its head uh clobbered in the last, especially in the last quarter. And that’s unusual for them. I mean, really coming out of 2022 when it looked like things were uh seizing up. I mean, Mag 7s have been the go-to. So it’s been kind of unusual to kind of see negative returns from these companies. So, I I do think um that these these guys are due for uh to catch a bid uh in this in Q2 and into Q3. And uh I I I do think that uh, you know, they’ve been sort of left left to the side finally and and a lot of people are sort of expressing uh exasperation with their performance and that’s typically a good counter indicator of of when you want to, you know, start looking at entering the name.
01:08 Speaker A
So we have seen solid upside moves in some of the majors like an Exxon, Chevron, but the oil field services place plays like a Transocean, Slumber J, those stocks have not participated in this rally in the oil space, but looking as, how do you bet against a company like Exxon over the next 15 to 20 years given these uh the propensity for more geopolitical shocks. And oh yeah, I mean, we don’t have any more dinosaurs. I mean we’re not getting any more oil.
01:34 Speaker C
Right, and I had just seen that Exon Mobile’s uh PE actually is higher than Nvidia’s. So that just happened about a week ago. But uh look, uh this this city note was interesting because I thought that it pointed to this point that the energy transition is going to take longer than expected. As you mentioned, oil and gas is incredibly important to the world. uh and it’s not just oil and gas, it’s every all the derivatives as well that you that come from that. You’ve got helium that’s is used for chips, uh you’ve got fertilizers. So there are many parts to this oil oil and gas story. And so yes, I think that this underscores the importance of this. So, um as far as the city note’s concerned, there’s still room for these stocks to to go higher.
02:22 Speaker D
I’m going to show you a great chart of XLE. This is a max chart. This goes back to the beginning of the century and it was trying to break out of this ceilings three times. It took 20 years and as the saying goes, the longer the base, the higher in space, energy is just getting started here.