A long position in ConocoPhillips looked like a hot trade but so far, all it's done is burn Josh Brown.
The money pro made this fateful call on March 20th. “We just put on a pretty sizable position in ConocoPhillips,” he said at the time.
“If you look at where that company’s assets are, they’re not involved with the Saudi Arabian stuff. They’re not in that whole play. So, heaven forbid there is some kind of super spike or geopolitical event, Conoco, actually, would be a beneficiary in our view. Higher prices are great. They’re not the whole story there…they’re a lot of other things happening. We like that name.”
One thing that was definitely not ‘happening’, however, was bullish price action. Since Brown made the call the stock drifted about 5% lower.
What’s the trade now?
“I’m sorry everyone,” says Brown, “I said pull the trigger too soon."
However, Brown remains bullish.
"On May 1st they’re going to separate the company and split it in half. You’re going to get 1 share of Phillips 66, which is the gas stations for every two shares of Conoco that you own. We think it unlocks a tremendous amount of value. We think there’s a big catalyst here. We still want to be buying,” he adds.