Oppenheimer's Fadel Gheit Does The Kübler-Ross Model of Grief Schtick For Oil Investors

Beginning with the most recent edition of the 'Bible' of the psych business, the Diagnostic Statistical Manual of Mental Disorders or DSM V, grief is now labeled a mental disorder whereas in previous editions grief had been considered normal* and there was a two-month 'Bereavement Exclusion'. Now grief is subsumed under Depressive Disorders, DSM code 296.x.

We noted that the change would be coming in 2011's "Good News For Anyone Disappointed By the Debt Ceiling Vote Results" because, being the full service resource that we are, we wanted to tell folks on both sides of the issue who seemed a bit too affect-ed, that they would soon be covered under Obamacare.

The same is true for those who didn't take to heart the message of Jan. 2, 2015's "The Opportunity In Shorting Energy Equities (XLE; XOP)" or most any of our oil posts from the last half of 2014.
Your health insurance will now cover you.

From Barron's Stocks to Watch:

The Crude Collapse: Shock, Denial, Panic, Capitulation, Consolidation

Oil traded below $42 today–and that’s been bad news for oil stocks like Chesapeake Energy (CHK), Range Resources (RRC), Marathon Oil (MRO), and Southwestern Energy (SWN), which are among the worst performers in the S&P 500 today. Oppenheimer’s Fadel Gheit and Luis Amadeo explain why some oil producers could be in trouble even if fair value for oil is somewhere between $65 and $75:

We believe the new normal for oil prices is somewhere in the $65-75 range and significantly higher or significantly lower prices are not supported by market fundamentals. Oil cycles usually go through five phases; shock, denial, panic, capitulation and finally consolidation. The vast majority of oil companies are living beyond their means, with operating cash flow falling short of capital investments and dividend…Continued deficit spending in a low oil price environment, especially for financially constrained and high-cost producers, amounts to self-liquidation and destruction of shareholder value. Unless oil prices rebound significantly above future strip prices, oil stocks could sink further, as takeover premiums shrink with potential sellers significantly outnumbering potential buyers....

...MORE

*"an expectable and culturally sanctioned response to a particular event" (Prigerson et al., 2009, p. 2)

As to your correspondent, the DSM V does not yet recognize compulsive blogging as a disorder so it's out-of-pocket for yours truly.

Previously:
Commodity Investors And the Kübler-Ross Model of Grief (or why gold could go lower than our $875 target)