Our Oil and Gas Report featured an interview with Longdley “Lenny” Zephirin Chief Executive Officer, Director of Research and Senior Analyst at The Zephirin Group, Inc. Mr. Zephirin gave us insight into the sector:

“From a business perspective, fundamentally the sector is solid and, more important, we are avoiding a collapse in oil prices. Management has done a great job of scaling down, taking rig equipment out of service by either warm stacking rigs till the market improves in the short term or cold stacking rigs till oil prices and demand are showing signs of stability – avoiding a collapse of day rates.”

Investors should buy the more liquid names in the group, they should stay with the deepwater names and the premium companies. He would be wary of the laggers at this time. Overall, he believes that the recovery in share prices will probably be a W-curve recovery. He also recommended several companies but you will have to read those on TWITTER.

This entry was posted on Monday, August 3rd, 2009 at 10:08 am and is filed under Natural Resources Stocks. You can follow any responses to this entry through the RSS 2.0 feed.