WHY I’M BUYING CHEVRON (CVX) AND TRANSOCEAN (RIG) BECAUSE OF THE BRAZILIAN SPILL

Twitter
LinkedIn
Facebook

Headlines yelled, Big Oil Spill Off Brazil.   Complete with satellite images, reports of cover up by a super major oil giant Chevron (CVX), big police investigation, a rig by Transocean (RIG), and message boards abuzz with a spill bigger than the BP (BP) spill in the Gulf of Mexico, the media had a juicy story.

Conspiracy theorists were delighted to see market value of Chevron drop by about $17 billion.   Quick trigger fingers at large institutions went along for a ride by rapidly selling Chevron stock in large quantities before even asking a question.

The chart shows the ferocity of the selling.

Investors in Switzerland-based Transocean were creamed again as shares dropped alongside Chevron’s.   It appeared a replay of Deepwater Horizon spill.   The only difference was that Halliburton (HAL) was not at the party.   Halliburton did the cement job at Deepwater Horizon. I stepped up and bought both Chevron and Transocean and sent ‘˜buy’ signals to subscribers to my ZYX buy alert. All six of my screens were flashing ‘˜buy’ for both Chevron and Transocean.

Although I was criticized at the time, my reasoning was simple.   Small oil spills are common in deepwater drilling, big spills are rare.   Chevron has not been known for aggressive cost-cutting measures like BP was in drilling.

Further differentiating this spill from the Deepwater Horizon in the Gulf of Mexico, satellite images were not showing the Brazilian spill to be anywhere near the size of the slick that came out of the doomed Macondo blowout…Read More at Forbes..

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence