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07.22.08: Why do some of your oil and oil service stock picks drop if the price of crude is going up?

I remain very confident in this industry group due to extremely high day-rates for their drilling equipment and services. The oil service business has historically been very cyclical, and they tend to take their cue for their latest quarterly earnings, so their upcoming second-quarter earnings announcements and future earnings guidance will be crucial. In the interim, talk emanating from Congress that we "cannot drill our way out of this problem" and imposing "windfall profit taxes" can temporally hinder oil-related stocks. For some of the reasons I listed above, including the "speculation" bills in Congress, the current political environment is very hostile towards many of our oil-related stocks. But try to focus on the upcoming second quarter earnings announcements that should be stunning for the vast majority of our oil-related stocks. We've only just begun to see the huge profits these companies can turn in!

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