With oil execs beating the drum about $5 prices in the future, now may be the time to begin buying the beaten-down oil companies.
Conoco-Phillips (COP)
from Global Dividend Investor
I’m re-recommending Conoco-Phillips (COP). We are currently slightly underwater in our 4% Conoco position. Although there’s no guarantee, the stock seems to have stabilized. I view it as a good long-term buying opportunity.
It has a good yield at its recent price if you want to add to your position. Moreover, the call premiums on the stock are extremely attractive, adding an additional 8% return for the first year for writing Jan 2016 at-the-money calls, if you bought at our average price of $65. If the stock gets called, you’ll pocket 12.5% annualized. If it doesn’t, you’ll get that rate for the first year and the yield thereafter, and will have the opportunity to write calls again.
Conoco-Phillips is a buy up to $70 for long-term investors. It is an exceptional buy at current levels.
Jack Adamo, Global Dividend Investor, www.globaldividendinvestor.com, January 15, 2015