I am looking into my next move within the stock market and oil has caught my eye. Now normally I wouldn't entertain the idea as I have a large investment in AFC Energy who are classed as clean energy and technically the competition of oil companies.
However with the Covid-19 stock crash I am curious as to the future and maybe the world isn't set up just yet for a clean energy push to get us all back up and running (for the record I truly hope we learn and take this opportunity, but not sure the powers that be see it that way just yet).
So, I have a dilemma that I hope some of you could help shed some light on for me, but first a quick background on my investment style......
I am a value / growth investor. I have read The Intelligent Investor and am a keen follower of Warren Buffett. It is fair to say I'm a fundamental analysis geek and can spend hours, sometimes days, just looking at a few shares and working out if I think they fit my criteria. Data researching isn't an issue for me, but judging the worlds reaction is something I am a little behind on, so........
My question is:
With oil companies taking a hit recently with the price of oil dropping & storage being an issue do you think this is a good time to buy. And could this be a reasonably quick turnaround or potentially 5 to 10 years?
I have looked at BP (BP.) and Shell (RDSA) in particular and on a rough calculation see them as between 50% and 25% undervalued. Of course it is always a personal calculation as intrinsic value isn't an exact science, but still.....profit to be made I think.
I'd love to hear any thoughts you have on this, both positive and negative, as this isn't a decision I am finding easy to make. Thanks for ready and stay safe