Goldman Sachs, the top investment bank on Wall Street, this morning sent out a recommendation to it's clients to re-consider buying oil related stocks. Among the four or five they suggested was Cenovus Energy, symbol CVE. If you have been a reader of this blog, you would have noted that twice I have recommended this stock for long term gains and decent dividend income. CVE is sitting on a big pool of oil and it is just ramping up production. Ten years from now you will be thrilled you bought this stock and just put in away in your portfolio. My first post on CVE was Feb. 3 when you could have bought it around $34 per share, it has traded over $40 since then and now settled back to around $35 as the economy has slowed. If you are a long term investor consider taking a position here again.
Speaking of Goldman Sachs, symbol GS. This stock has again moved up from around $132 per share to today about $138 per share. This due to some improving news on the legal front with the company. Again, you will note I did recommend purchase of this stock, or the purchase of puts on the stock, for short term and long term gains. I expect the stock will again be back lower when more negative news hits. The legal probes are just beginning. But the recent movement illustrates the upward bias in GS and once the legal cloud is lifted the stock will move up significantly. Do not expect any positive news anytime soon, but purchase of this security is for a year or so down the road gains.
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