I received this question concerning Doug Terreson's (Morgan Stanley) buy limits on his stock picks:
Dear John,
A while back you had indicated that you believed that the top oil analyst on the street is Doug Terreson from Morgan Stanley.
We would appreciate if you could also suggest entry prices for the stocks Doug had mentioned, as Talisman is a favorite of mine that he had recommended.
Thank you very much for your insights.
ANSWER: Doug does not give buy limits; only price targets. I think the best rule of thumb is to buy when you get a 10% pullback off the 52 week high, and keep in mind that past corrections have taken these shares down 15-20%.
All in all, I would start buying on a 10% pullback, and keep adding to my positions on subsequent declines.
Some of these price targets were reached last week. On stocks that have not declined enough, selling a put at the various strike prices has been a useful strategy.
Marathon (MRO)- $70 or less.
Conoco (COP)- $60 or less.
Sunoco (SUN)- $85 or less.
Valero (VLO)- $57 or less
Exxon (XOM)- $59 or less.
