Q: Kel is up 20% in the past few trading sessions and HME is up 16%. I like them both but feel they have really had hyperbolic moves lately.
If you were going to open positions in these 2 energy plays would you wait or buy at current market.
If wait, at what price?
Sheldon
If you were going to open positions in these 2 energy plays would you wait or buy at current market.
If wait, at what price?
Sheldon
5i Research Answer:
Much of course will depend on how long the Strait of Hormuz is closed. Both companies are doing well fundamentally, and of course the sector has surged. "Waiting" of course is a form of market timing. We would consider one's sector position first. If one has decent energy exposure, we would be fine waiting a bit. If not, we would start with a half position of each. One tweet from the President could see oil down $20, so we would expect volatility regardless. A half position could be filled later into the expected volatility.