Dow?
- Thread starter irvinehomeowner
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Now that you know where I am coming from, do you think crude oil prices (price per barrel) is directly related to the solar industry?
I don't look at stocks in the next year or two, I'm looking at 10+ years.
Additionally, electricity costs are high every summer and with the record heat that many areas in the US are having on an annual basis, solar is becoming more viable. IUSD is investing millions (billions?) of dollars into installing solar panels at their schools.
As much as I say that solar is not prime time it will be.
And I disagree that oil barrel prices are directly connected to solar, using that budget argument, you can say oil prices are tied to any consumer stock.
In 1998 the average price of a barrel of crude was $11.42 and believe it or not the average price of gas that year was .99 cents. That year Chevron's average Price/Earnings ratio around 9. in 2008 the Price of Crude hit $140 but averaged well over $100 and Chevrons Price/Earnings ratio was...you guessed it....around 9. Today, Chevrons Price/Earnings ratio is....around 9 Better than a Casino.
ugh.. missed this. Please post more gems guys.
To my point the market now agrees.
http://www.bloombergview.com/articles/2014-12-29/this-era-of-lowcost-oil-is-different
Oil
This Era of Low-Cost Oil Is Different
Having seen numerous fluctuations in the energy markets over the years, many analysts and policy makers have a natural tendency to ?look through? the latest drop in oil prices -- that is, to treat the impact as transient rather than as signaling long-term changes.
I suspect that view would be a mistake this time around. The world is experiencing much more than a temporary dip in oil prices. Because of a change in the supply model, this is a fundamental shift that will likely have long-lasting effects.
As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.
The likelihood of longer-lasting changes is intensified when we include the geopolitical ripple effects. In addition to creating huge domestic problems for some producers such as Russia and Venezuela,
the lower prices reduce these nations? real and perceived influence on other countries. Some believe Cuba, for example, agreed to the recent deal with the U.S. because its leaders worried they would be getting less support from Russia and Venezuela. And for countries such as Iraq and Nigeria, low oil prices can fuel more unrest and fragmentation, and increase the domestic and regional disruptive impact of extremist groups.
There are no negatives..for us
irvinehomeowner
Well-known member
Maybe I misunderstood you, as your original reference was to oil *prices*, I guess you meant oil *stock* prices.eyephone said:
Now that you know where I am coming from, do you think crude oil prices (price per barrel) is directly related to the solar industry?
qwerty
Well-known member
When oil prices are high, it means gas costs more, deliveries cost more, anything with plastic cost more etc, so household budgets are tighter. So people start looking to cut costs by looking at solar. So higher oil means higher stock price and higher solar stock price. Lower oil, less pressure on household budgets, less interest in solar so lower solar stock price.
irvinehomeowner
Well-known member
That may be the case now but not in 10-20 years.qwerty said:
I don't look at stocks in the next year or two, I'm looking at 10+ years.
Additionally, electricity costs are high every summer and with the record heat that many areas in the US are having on an annual basis, solar is becoming more viable. IUSD is investing millions (billions?) of dollars into installing solar panels at their schools.
As much as I say that solar is not prime time it will be.
And I disagree that oil barrel prices are directly connected to solar, using that budget argument, you can say oil prices are tied to any consumer stock.
Irvinehomeowner -
"While many stocks are affected by low energy prices -- for instance, airline stocks benefit from lower fuel prices -- solar stocks trade more in immediate tandem with the energy sector as investors consider the overall cost of energy. So, if crude oil prices are getting close to their nadir, the bottom of the solar stocks' slide will likely come sooner than later."
Source:http://www.thestreet.mobi/story/129...o-bargain-territory-as-oil-prices-plunge.html
"While many stocks are affected by low energy prices -- for instance, airline stocks benefit from lower fuel prices -- solar stocks trade more in immediate tandem with the energy sector as investors consider the overall cost of energy. So, if crude oil prices are getting close to their nadir, the bottom of the solar stocks' slide will likely come sooner than later."
Source:http://www.thestreet.mobi/story/129...o-bargain-territory-as-oil-prices-plunge.html
morekaos
Well-known member
i1 said:
In 1998 the average price of a barrel of crude was $11.42 and believe it or not the average price of gas that year was .99 cents. That year Chevron's average Price/Earnings ratio around 9. in 2008 the Price of Crude hit $140 but averaged well over $100 and Chevrons Price/Earnings ratio was...you guessed it....around 9. Today, Chevrons Price/Earnings ratio is....around 9 Better than a Casino.
irvinehomeowner
Well-known member
I'm with morekaos on this, oil companies seem to profit no matter what the price of oil is.
J
jmoney74
Guest
qwerty said:
ugh.. missed this. Please post more gems guys.
. But you are on your own now
morekaos
Well-known member
morekaos said:
To my point the market now agrees.
http://www.bloombergview.com/articles/2014-12-29/this-era-of-lowcost-oil-is-different
Oil
This Era of Low-Cost Oil Is Different
Having seen numerous fluctuations in the energy markets over the years, many analysts and policy makers have a natural tendency to ?look through? the latest drop in oil prices -- that is, to treat the impact as transient rather than as signaling long-term changes.
I suspect that view would be a mistake this time around. The world is experiencing much more than a temporary dip in oil prices. Because of a change in the supply model, this is a fundamental shift that will likely have long-lasting effects.
As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.
The likelihood of longer-lasting changes is intensified when we include the geopolitical ripple effects. In addition to creating huge domestic problems for some producers such as Russia and Venezuela,
the lower prices reduce these nations? real and perceived influence on other countries. Some believe Cuba, for example, agreed to the recent deal with the U.S. because its leaders worried they would be getting less support from Russia and Venezuela. And for countries such as Iraq and Nigeria, low oil prices can fuel more unrest and fragmentation, and increase the domestic and regional disruptive impact of extremist groups.
There are no negatives..for us