Wednesday, September 25, 2013

Any Investors Who Were Lost, Found Profits in Oil (USO, SU, COP, OCTX)

There has been a great deal of concern about the United States suffering from a "lost generation" as Japan has now for several. For investors in oil, this has certainly not been the case: A recent article in The Wall Street Journal noted that oil has risen 310% (Brent Crude) over the last decade. The future looks equally promising for investments in the sector such as ConocoPhillips (NYSE: COP), Suncor Energy (NYSE: SU), Americas Petrogas (BOE.V), and Octagon 88 (OTCBB: OCTX).

The exchange traded fund for oil, United States Oil (NYSE: USO), is up more than 12% for the last quarter. Part of the rise of United States Oil in recent market action has been due to the "Syria Premium." But there are many aspects to oil that has it climbing in price as other commodities fall, as noted by The Wall Street Journal piece.

That is obviously why legendary investor Warren Buffett is a major shareholder of ConocoPhillips and Suncor Energy. Both Suncor Energy and ConocoPhillips pay above-average dividends. But the share prices for ConocoPhillips and Suncor Energy have been rewarding, too. For 2013, ConocoPhillips has risen by more than 26%. Over the last quarter, Suncor Energy, a Canadian firm, has jumped by more than 20%.

There is much for investors to like about Canadian oil companies like Suncor Energy, Americas Petrogas, and Octagon 88.

Americas Petrogas just reported huge increases in net revenue and sales volume for the second quarter. Management of the Calgary-based firm have hired the investment bank of Jefferies LLC to enhance shareholder value. Based in Switzerland, Octagon 88 has extensive holdings in Canada. For those looking at Octagon 88, the recent headline of an article from this site says it all: "Octagon All Set to Enter The Billion Barrel Club."

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The art of investing is buying the future income stream of an asset.

Based on the past decade, the future should be rewarding for those investing in oil companies such as Americas Petrogas, Octagon 88, ConcoPhillips, and Suncor Energy.

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