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Take A Look At Teekay

08/06/10 11:35:51 AM
by Koos van der Merwe

If you think oil prices are going up but you do not want to own oil, take a look at this company.

Security:   TOO, TK
Position:   Buy

Teekay Offshore Partners (TOO), a Marshall Islands partnership, provides international marine transportation and storage services to the offshore oil industry. Is this worth your while, you wonder? You'll be surprised; the charts are worth looking at. Figure 1 shows Teekay Corp. (TK) and Teekay Offshore (TOO).

FIGURE 1: TOO VS. TK. Here's a chart of Teekay Offshore Partners superimposed on a chart of Teekay Corp.
Graphic provided by: MetaStock.
The chart shows that both stocks move almost in tandem -- I say almost because analysis reveals the following. TK was quoted at $11.50, while at the same date, November 28, 2008, TOO was at $6.50. But by August 3, 2010, TK's price was $29, a gain of 60.3% (29 - 11.50 = 17.50/11.50 = 60.3%), while TOO's gain was 72.74% (23.85 - 6.50 = 17.35/6.50 = 72.74%). TOO appears to be the better stock to invest in. The other advantage is that TOO is currently offering a yield of 8.1%, while TK is only offering 4.7%.

FIGURE 2: TK. Here's TK showing the buy signal given.
Graphic provided by: OmniTrader.
Figure 2 is currently giving a buy signal for TOO. If you look back over the chart, at the vote line, you can see how effective the buy signals given were. We can apply a different stop-loss (exit level) to the buy signal, but that is up to the investor.

The chart also shows that the two indicators, the stochastic RSI cycle and the Hawkins MACD volume indicator, have also given buy signals. This is a share to buy and hold for the long term.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address:

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