Silver Ridge Resources says it is among the voices calling for a closer look at battered oil stocks after huge falls over the last 9 months.
Silver Ridge Resources has published its latest conviction buy list and revealed a heavy bias towards oil production and energy stocks despite heavy falls in the sector since oil prices began their slump in June 2014.
The Shanghai, China-based broker dealer has raised its price target on 9 stocks by a minimum of 18% for 2015 and proclaims that “the bleeding has stopped in the oil sector”.
“We accept that’s a bold claim but such is the uptick in buying in sub sectors like Oil & Gas Drilling and Oilfied Services/Equipment this year that we felt confident in recommending them” said Vivian Ericsson, chief commodities and resources research at Silver Ridge Resources.
Although Ericsson would not be drawn on naming examples of the recommended stocks, she did stress that all were well-capitalized and had compelling price-to-earnings ratios based on forward-year projections. The firm’s outlook for oil prices for the rest of 2015 suggests it expects prices to recover to the $60 a barrel level by the third quarter but it does caution that its forecasts depend on the extent of the economic slowdown in China
“The Chinese authorities have forecast growth for 2015 coming in at 7% which is very low. If growth looks like undershooting, oil will almost certainly come under renewed pressure bringing the $30 a barrel level very much in play to the downside,” added Ericsson.
Silver Ridge Resources says it believes oil prices will continue to be driven by demand dynamics for most of the year but adds that an outside chance of more US central bank intervention in the form of quantitative easing would definitely drive prices higher.
About Silver Ridge Resources:
Founded in 2005, Silver Ridge Resources is an independent, full-service brokerage, investment planning and management concern committed to delivering innovative capital appreciation and preservation solutions to individuals and families with a high net worth. We place the welfare of our clients and their families first and we pride ourselves on having become the first port of call for their financial affairs. We consistently exceed our clients’ expectations by going the extra mile in terms of attention to detail, delivery of service and, most importantly, returns on investment.
From our headquarters in Shanghai, China and offices around the Asia Pacific region, we currently oversee the deployment of over $4.5 billion of assets on behalf of clients both in Asia and around the world.
Contact Silver Ridge Resources:
681 Haining Rd
Zhabei, Shanghai
200085
8675586243512
info@silverridgeresources.com
http://www.silverridgeresources.com