Bill Cara: Alberta oil sands pipelines update, Wed., Apr. 5, 2006, 10:58 PM

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April 5, 2006

Alberta oil sands pipelines update, Wed., Apr. 5, 2006, 10:58 PM

Two more reports from the excellent UBS research team will help traders better understand why I say that the western Canada oil sands producers and pipelines offer a long-term "no brainer" scenario. These two reports are on the oil sands pipelines.

Download file of 5-April-06 UBS Report on Oil Sands Pipelines

Download file of 29-March-06 UBS Report on Oil Sands Pipelines

Traders who buy the recommended stocks when the RSI technical indicator is in an Accumulation Zone, say near the 30 line or preferably below it, will most likely out-perform the broad equity market indexes.

Periodically there are mass media "alarms" for one issue or another, or industry downgrades, that help bring the share prices of the best quality companies into a preferred buying zone. Some of these stories are created to cause weak holders to sell. Don't be fooled.

Once you get to understand a company's fundamentals, stick to a discipline of buying once or twice every year or two. And periodically over-writing calls when the share prices get technically over-bought will also add premium income that enables you to lower your cost base.

Over the years, this is a formula that works. It is a strategy that helps you acquire stocks that otherwise are very expensive, such as the Alberta oil sands producers and pipelines.

Posted by Posted by Bill Cara on April 5, 2006 10:58:38 PM | Category: 10 Energy , Canada

Discourse

NG (navel gazing)

Data and discussion vs 'ratings'-

One of the more meaningful conversations I have had with an analyst was in regards to how her recommendations should be used. This was quite some time back but it had a lasting impact on my thinking. After all once a stock has been 'upgraded' to a 'buy' by a known/respected analyst, a big bump is in the stock (by traders) before the average investor or manager can even read the report. Dito for a 'sell'.

Her reponse was that 'thinking' managers and/or traders READ the reports of stocks NOT rated as BUYS (SELLS) but demonstrating an analyst has a rising (falling) opinion of the stock / situation. How else can an analyst communicate with important clients which need to accumulate (distribute) positions in size? Not that the analyst HAS to then upgrade (downgrade) the stock but that is the direction their thinking is headed. And that is how one would try to get ahead of that bump when the upgrade (downgrade) comes.

Posted by: stockman at April 6, 2006 9:22 AM [link]

Bill-

Let me take the time to thank you for sharing all of these research reports. I know that others are appreciative as well.

Best,

Posted by: MarkM at April 6, 2006 9:45 AM [link]