Actionable news
0
All posts from Actionable news
Actionable news in RIG: TRANSOCEAN Ltd.,

Don't Get Fooled: The Energy Rally Is Too Little, Too Late For These 2 Distressed Oil Stocks

1

There's an old adage on Wall Street: Don't confuse a bull market with brains. If you're excited by the recent surge in oil and gas prices, you should curb your enthusiasm. Not all energy stocks will make it.

Below, we pinpoint two of the most vulnerable energy stocks. Their share prices have risen dramatically in recent days, in tandem with the energy price rally. But don't be duped. They're among a group of equities that are destined for further declines this year. Let's see why.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks with serious upside potential in the next 12-months. Learn more.

Must Read: Crude Oil Futures Are Headed Lower -- Sell Your Holdings Now

Transocean's stock has jumped 16.35% over the past five days, propelled by the overall energy price rally, but it's down 21% year to date and 43% over the past year. We think further declines are in the cards.

This drilling company continues to pay the price for its ill-timed expansion, fueled by debt, right before energy prices started to slide in mid-2014.

Transocean also is hobbled by its focus on deepwater and ultra-deepwater work, two capital intensive specialties that were growing like gangbusters when oil prices hovered in the $80-$100 range, but which are now suffering as exploration and production (E&P) giants cut back on more expensive projects that are farther out...


More