Do you know when you can bet that oil is not done going up? When you see National Oilwell Varco (NOV) going higher. That's the late-cycle oil play, the one you call when your drilling equipment is worn out or when it is worth it to flat-out drill because the gains are going to be so bountiful.
I use this stock as my barometer of how high oil can go, and National Oilwell Varco is signaling that we could go to levels similar to those of 2008, when NOV was the hottest stock in the universe.
Right now, NOV is about to take out that old high.
A lot of people are asking me for the pure oil plays to capitalize off the run. I tell them that they should be thinking of Continental Resources (CLR) first, then Occidental Petroleum (OXY), which are both very levered to the price of crude. EOG Resources (EOG) matters, too, although people are getting down on it now because the natural-gas portion of the business is such a huge drag, one that you don't feel with Continental and Occidental.
But, you want real leverage? It's time to get into National Oilwell Varco, because business is great, and you can only bet that business is getting much better as oil stays above $100.
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