✔️ We know that the profits of oil and gas exploration companies go up when international oil prices go up.

✔️ We also know if the dollar depreciates, they make more money.

✔️ We also know that if you are betting on the oil price, you should buy a company that has more sales coming from oil as compared to natural gas! But if you want a disconnection from international oil price volatility, you should buy a company that has a higher share of natural gas in its sales mix.

But I have one more question to ask from you to lead you to the biggest issue these companies face. So, here we go!

❓OGDC and PPL are government owned while MARI and POL are privately managed and owned. Why do OGDC and PPL trade at a 40% PE discount over the other two?

Is it the management? Is it the circular debt? Is it a lack of dividends? or all of the above?

A difficult one for my savvy readers

We know the circular debt is an issue, but is it related to OGDC and PPL only because they are government-owned and managed or is it an industry-wide issue?

Your answer will determine how much % of your portfolio should you allocate to this sector. I will explain why tomorrow!

I have an announcement to make which will come with the answers tomorrow!

About InvestKaar

I am Furqan Punjani and I have been a retail investor and a financial analyst for 15 years now! My only goal right now is to help SIMPLE RETAIL INVESTORS make money from the stock market. This newsletter and this free stock market course, are to help investors become better investors.

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