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Stocks That May Take a Hit When (If) Oil Hits $150

by: Thomas Smicklas June 10, 2008 | about stocks: AA / ACF / AMTD / AXL / BDX / BEAV / C / CAB / CLX / DOW / EYE / F / GM / GPN / LCC / NLY / OSG / RCL / SHLD / SUN / TEL    

Thomas Smicklas

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Many e-mails from my blog commented that the list of stocks appreciating with oil at $150.00 contained some surprises and made for a useful beginning for research. With that in mind, here is what the team at Credit Suisse First Boston came up with for stocks that will be hard hit at that oil strike price:

  • Sunoco (SUN)
  • Alcoa (AA)
  • Dow Chemical (DOW)
  • USAirways (LCC)
  • Overseas Shipping Group (OSG)
  • BE Aerospace (BEAV)
  • Clorox (CLX)
  • American Axle (AXL)
  • General Motors (GM)
  • Ford (F)
  • Sears Holdings (SHLD)
  • Cabela's (CAB)
  • Royal Caribbean (RCL)
  • Annaly Mortgage (NLY)
  • Citi (C)
  • AmeriCredit (ACF)
  • TDAmeritrade (AMTD)
  • Tyco Electronics (TEL)
  • Global Payments (GPN)
  • Advanced Medical Optics (EYE)
  • Becton Dickinson (BDX)

I do not agree with the Dow Chemical selection, as DOW is producing lots of product in countries that have the oil at subsidized prices. I like DOW.

I had a few critics at a companion web site that were critical of my "list" without research to back it up. Two points, the research is for CSFB subscribers and I am not going to copy a twenty-eight page report. Second, going to the websites of the few who wrote beefing about seeing just a "list", I saw a managerie of hacked graphs with obscure trends that would have made Benjamin Graham smile - or roll over in his grave.

This above list is a starting point to begin your own research, be it fundamental or via some pseudo-gospel bobs and weaves on a chart.

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This article has 8 comments:

  •  
    Jun 11 11:11 AM
    A rather curious group. Any company with cheap energy at the core of its business model will be at risk as the price of energy climbs. DUH. Some companies will survive by changing their model. A lot wont or can't. How about a new list when oil hits $250.
    Reply
  •  
    Jun 11 11:44 AM
    Don't wait for $150 oil. You can short-sell SUN, TSO, GM, CAL and TSN right now. Check out the website for more info.
    Reply
  •  
    Jun 11 07:21 PM
    If they auto manufacturers go, they will take a lot more than this bunch with them. The list could multiply by a bunch... it would not be pretty.
    Reply
  •  
    Jun 11 07:22 PM
    Sorry, I meant "If THE auto manufacturers go..." not "If 'they'..." should have used my grammar checker!
    Reply
  •  
    Jun 16 05:03 PM
    This list sugests a broad spread economic downturn and makes sense at $150.00 oil or even where it is now. I think it was a good article, informative and well written. Thanks.
    Reply
  •  
    Jul 01 10:35 PM
    One who relies on title for justification of a belief or view, dishonours that title and undermines the intellectual authority that title was meant to convey.
    Reply
  •  
    Jul 01 10:52 PM
    In the same vein, a dubious individual can make an astute claim. I don't fault the writer for his article, but criticism is better met with fact, than with attacks on the character of your opponent. Thanks for the interesting thoughts though. It is harder to create than to criticise.
    Reply
  •  
    Jul 07 01:07 PM
    annaly?
    Reply
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