Replies to post #4140 on Pedevco Corp. (PED)

[I-Man]

UPDATE: Two ways to play oil stocks while limiting your risk
8:07 am ET May 19, 2018 (MarketWatch)

By Philip van Doorn, MarketWatch

Big oil companies, including Exxon Mobil, Helmerich & Payne and National Oilwell Varco, are trailing the oil-price recovery

The recovery of oil prices looks to be "for real" this time, springing from a combination of stronger demand by developed economies and expected disruptions in supply from exporters including Iran and Venezuela.

Two data approaches shed light on ways that long-term investors can jump on the trend while limiting their chances of being burned.

Don't miss:Oil prices have surged above $70 -- here are four key reasons behind the rally (http://www.marketwatch.com/story/oil-prices-have-surged-above-70here-are-4-key-reasons-behind-the-rally-2018-05-07)

The first way is simple: Concentrate on oil refiners. We recently looked at the best-performing oil stocks of 2018 and saw that among S&P 500 energy stocks, oil refiners were the most consistent performers (http://www.marketwatch.com/story/here-are-the-hottest-us-oil-stocks-of-2018-2018-05-07) through the oil bust and (partial) recovery cycle.

The second way is to consider oil companies that have the lowest leverage, or borrowings. We first took this approach during the doldrums of January 2016, when oil was nearing its bottom. At that time, we listed the 10 S&P 500 energy stocks with the lowest ratios of long-term debt to equity (http://www.marketwatch.com/story/10-oil-companies-that-will-thrive-as-crude-prices-rebound-2016-01-12) as of Sept. 30, 2015. The idea was that the companies with the lowest amount of long-term borrowings relative to equity would be better positioned than competitors, not only to survive but to be able to take advantage of market turmoil to scoop up assets or make acquisitions on the cheap.