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#1
01-14-2007, 04:53 AM
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Never invested before, want to invest in Crude Oil, how?
I don't know a damn thing about investing but want to start. Crude is at an almost 2 year low right now, so I'd like to try investing in it.
Where to start? Also, I saw somewhere that you have to buy in 1,000 barrel batches, is there a way to buy a lot less than that? I wanted to just start with a few hundred dollar investment. Thanks for the info. PS I've tried wikipidia and google and can't seem to find any good info. 
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#2
01-14-2007, 08:49 AM
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Re: Never invested before, want to invest in Crude Oil, how?
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#3
01-15-2007, 03:50 PM
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Re: Never invested before, want to invest in Crude Oil, how?
Apache (ticker APA). Almost half its reserve base is in the U.S. and much of the remainder is in "western friendly" Canada and Australia. It's riskiest reserves, those located in Egypt, represent 13% of the reserve base. Enterprise value is only 4.1x EBITDA and the stock trades at a little over 8.0x '07 earnings. ROE = 25%. It pays a small dividend and still generates $1.6 billion of free cash flow.
Even at $45 oil and $3 natural gas, the stock models up cheap. Given the stunts being played in Russia and Venezuela, portfolio managers who want/need oil and gas exposure will find 87% of APA's reserves in countries with 0% nationalization risk attractive.
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#5
01-14-2007, 08:47 PM
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Re: Never invested before, want to invest in Crude Oil, how?
I don't know if you can invest in commodities directly with so little money, but you might be able to find some stocks that that represent oil like there are for gold...
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#6
01-14-2007, 09:23 PM
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Re: Never invested before, want to invest in Crude Oil, how?
Marathon oil is one of the companies in my portfolio. I think you'll find investing in a company that specializes in the product you want to invest in is going to be a better bet than investing in that product directly. Just make sure whoever you choose is a well managed company. Anyway, a few hundred dollars will buy a few shares, just don't expect a huge return immediately.
Craig
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#7
01-14-2007, 11:22 PM
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Re: Never invested before, want to invest in Crude Oil, how?
[ QUOTE ]
I don't know a damn thing about investing but want to start. Crude is at an almost 2 year low right now, so I'd like to try investing in it. [/ QUOTE ] No offense, but investing is crude oil is a terrible idea in my opinion especially if you don't really know what you're doing.
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#8
01-15-2007, 02:53 AM
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Re: Never invested before, want to invest in Crude Oil, how?
buy conoco phillips (NYSE:COP). Hold for 15-20 years. Profit. errrrrr get more than a few hundred dollars first though so you're not paying 5% in commission.
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#9
01-17-2007, 09:27 AM
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Re: Never invested before, want to invest in Crude Oil, how?
[ QUOTE ]
buy conoco phillips (NYSE:COP). Hold for 15-20 years. Profit. errrrrr get more than a few hundred dollars first though so you're not paying 5% in commission. [/ QUOTE ] ^^^^^What this guy said. I only own 3 stocks (not good I know, but Im in the midst of moving some money around) and COP is one of them. They have a very low P/E.
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#10
01-15-2007, 10:24 AM
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Re: Never invested before, want to invest in Crude Oil, how?
[ QUOTE ]
[ QUOTE ] I don't know a damn thing about investing but want to start. Crude is at an almost 2 year low right now, so I'd like to try investing in it. [/ QUOTE ] No offense, but investing is crude oil is a terrible idea in my opinion especially if you don't really know what you're doing. [/ QUOTE ] Similar to a complete newb depositing $500 on Stars because "people are making money there".
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