T Boone Pickens Indicators
Strengths + Opportunities = 60
Threats + Weaknesses = 42
When strengths & opportunities substantially exceed threats & weaknesses an investment in T Boone Pickens has great long term potential. Click on top ten investments to see SWOT analysis statements for each of T Boone Pickens's top holdings.
Thomas Boone Pickens, Jr is an American Financier. He currently chairs the BP Capital Management hedge fund which he funded in 1997. In 1956, he founded the company known as Mesa Petroleum after beginning his career in 1951 with Phillips Petroleum. Mesa Petroleum became one of the largest independent oil companies in the entire world by 1981. A company thirty times the size of the company, Hugoton Production Company, took over the company after an major acquisition. Mr. Pickens began to focus solely on acquiring other gas and oil companies. He began making solicited and unsolicited buyout bids among other acquisition and merger activity. This activity led into the buyout of Phillips Petroleum, Unocal, Gulf Oil and Cities Service.
Investment Impacts (help)
USA Report ► The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. USA's Fundamental Currency Analysis (short term investment): the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. USA's Value Investor Survey (short term investment): the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. USA's Currency Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. Review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
Description: The energy stocks includes companies whose sales derive from the production and sale of energy related products and services such as the extraction, manufacturing, refining, and distribution of energy (see full energy description: competitors, industry ratios, best stocks, market leaders, aggregate SWOT Analysis, and streaming industry news).
Profit Analysis: The best way to profit from energy stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, energy stocks tend to outperform the general stock market, because general consumer demand increases.
Energy stocks are most sensitive to commodity prices, which are an indicator of future energy demand. Energy commodity speculators try to predict the demand and supply of commodities, but their generally set prices too high during economic expansions and too low during economic recessions. Therefore, the best time to make energy stock investments is during economic recessions. The best time to sell energy stocks is in the late stages of economic expansions, when energy stocks and commodity prices are above their fair prices. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Trading Strategy: The energy stocks tends to be very sensitive to economic changes. Demand for energy is inelastic, so it does not easily change with changes in price. Therefore, changes in supply have a large impact on the price of fuel. Some sectors of the energy stocks require large investments over an extended period of time, which causes issues with adjusting energy supply with demand, so prices tend to be volatile. Energy stock prices tend to move in line with energy commodity prices. During economic recessions, consumers may decrease expenses slightly, but the majority of energy costs are not flexible, because they are needed for everyday living.
Since energy needs are inflexible, stock prices are less influenced by changed in the economy. However, commodity prices such as oil or natural gas have a direct impact on energy stock investments. Changes in commodity prices are a result of changes in supply and demand. Recently, oil prices increased, because of the demand for oil from emerging markets. Unfortunately, the global recession decreased growth estimates and demand until oil prices fell from 160 dollars a barrel to 35 dollars a barrel.
Part of oil price changes are do to speculation. When speculators increase the price of oil, many alternative sources of fuel become profitable. When companies make investments in these alternative sources of fuel, supply increases until energy prices start to fall. If prices fall too far, then the alternative fuel sources become less profitable and shutdown, which decreases demand. Stock prices rise and fall with energy commodity prices.
