This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Playing Crimea: should you be shorting oil and gas stocks right now?

James Dennin, Kapitall: Russia's annexation of Crimea is creating headaches for investors in oil and gas stocks worldwide.

Russian President Vladimir Putin didn't wait long after his Olympic Games to start stepping on Western toes. Less than a month after Sochi's resolution, Putin's annexation of Crimea seems all but complete

Some Background

Located on a peninsula between Russia and the Ukraine, Crimea is a gateway between East and West. It's where FDR, Winston Churchill and Stalin met to discuss post-WWII boarders, and in the wake of the Cold War it became the gateway between increasingly liberalized former soviet republics and mainland Russia. 

[Read more from Kapitall: Health and fitness goes mobile: consider these rallying digital health stocks]

Its mostly Russian population voted overwhelmingly to approve incorporation with Russia last week. That  would have made this issue pretty cut-and-dry. Crimea is mostly Russian, and wants to be subsumed by Russia. Let Democracy do its thing, right?

Except in 1994, the US and the UK signed a treaty pledging to help preserve Ukranian sovereignty and the integrity of its borders. Which basically means that on one hand you have the will of the Crimean people, and precariously balanced on the other hand are most of the precedents that make up international law. 

No wonder people are having trouble figuring out what to make of it.

Read more about investment plays on the crisis in Central Europe.

Investing Ideas

Russia's not a manufacturing economy like China, nor are they a big service or technology innovator like the US. Their economy is mostly built around exporting raw-materials and huge amounts of oil and gas to foreign buyers.

This makes finding value plays on the Russian stock market hard, as so much of Russia's economy relies on commodities prices which are by nature unpredictable. If you thought that sanctions were likely to intensify you could look for short opportunities in Russia's stock market and currency, but the valuations there are already super low. 

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs