Thursday, July 17, 2008

Energy Shorts

Calling all ideas for various energy companies you think may be overvalued. Energy has broken and it is still a risky short but working at finding overvalued energy companies. I will throw out First Solar as an example.


Mikey said...

You could go long DOY to short oil. It has a premium, I believe. Most of the ethanols have already tanked.

I've never shorted energy. Short-term, energy is so unpredictable because all it takes is one lunatic to send the price of oil skyrocketing.

There is WFR. They make silicon. Solar cells use massive amounts of it. I used to be long WFR, but I'm out of it at the moment. I wouldn't short it, though.

Market Seer said...

I am not wanting to short the commodity. Agree that it is entirely unpredictable but the psychology may be changing that those individual energy that are overvalued will finally get sold off instead of just getting bought with everyone else. PTEN may be another example.

Yeah I wouldn't want to short the supplier of solar companies. It is not that I think energy is done. Fisrt Solar will still be making solar panels. It is the psychology may shift that people may start actually looking at fundamentals and be like wow, look at the multiple First Solar is trading at per dollar of revnue. That is insane. People ignore it when the momentum guys are in it. Once it starts going down people actually start looking at the fundamentals and not willing to buy just on blind faith.