Some universal truths in the world of investment....

1. People will always buy cars,people will always cook,roads will always be built and repaired.

2. Cars run on petrol or diesel,are lubricated with oil and grease.

3. Many people cook with LPG.

4. Most roads are made with tarmac/ bitumen.

5. And now,generators,included Aggrekko and Tsavo power generators are running on diesel.

6. Oil companies are traditionally profitable,and pay handsome dividends.

some addittional facts ....

1. Demand for oil dived in 2008 due to financial crisis and global recession,causing oil to hit lows not seen in a long time.

2. Major oil companies recorded losses for the above reasons,lets say business was sh**. well,Kenya had unique triton etc also.

3. Leading to a fall in their share prices.

4. Global eonomic activity will recover soon,so will the prices of oil,hence profitability of oil companies and rise in oil stocks.

IMHO every serious investor,and i mean investor not speculators and armatures needs to have an oil stock in their portifolio. Now is the best time to start picking up Total at 28 and KENOL at 50.

Why is everyone on SK chasing fancy hyped up stocks like HF,KCB and Access when the best deals are staring them in the face?

Then start scrambling for KENOL when it reports a return to profitability?

NUNUENI SASA!

Try charting TOTL & KENO to Brent Crude and therein lies your answer.

Now factor in recent M&A activity (including Zimbabwe and the Mugabe factor)

If these share prices respond to 1. recovery of the economy or 2. an oil rally,it likely won't be based on fundamentals. (More likely Beta)

It often happens that a TRADER carries out a deep and complicated calculation,but fails to spot something elementary right at the first move!