Interesting Charts – Week 42

October 15, 2018

With the drop in the market last week, there may be many interesting charts popping up, but in my opinion, prices did not decline enough for any meaningful change.  I have two modest charts that are worth noting.

The first is Obsidian Energy, a Canadian energy company.  It was formerly known as Penn West, and before that Penn West Petroleum.   The name changes are an effort to remove the stigma of a bloated balance sheet in an overbuilt oil market.   The company has done much over the past three or four years to improve their lot, and while the company still has plenty of work to do to improve their balance sheet and get a decent return for shareholders, it is likely that in the next 12 months the work they have done will show benefits.  This is one of the riskier charts I have presented, but things are looking better.

20181015 - OBE-TO

The second is Venator Materials, and after recently going public, the company is down significantly.   They have a strong balance sheet however and appear to be building a bottom around the $9.50 level.

20181015 - VNTR

As always do your own research to validate whether these meet the needs of your investment strategy or portfolio.

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