Flipping Energy – Why Big Oil May Become the Next “Masters of Flip”

Flipping homes.   It seems to be all the rage on TV these days.   Flip or Flop.  Flipping Las Vegas.   Masters of Flip.  You get the idea. While the concept of flipping (buying an existing home at a very low price, improving it, and then reselling it for a profit) isn’t new, after the economic downturn and the associated real-estate depression, flipping has become a popular business model for some real-estate oriented operators. And while energy traders don’t necessarily rip out carpet, install granite countertops and new subway tile, the basic concept is still the same:  Buy it low, sell it high, reap the rewards. Specifically, the flavor of energy trading we’re talking about here is speculating, rather than hedging. Speculating is when Flip or Flop’s Tarek El Moussa goes to an auction and buys a rotting, flea-infested home sight-unseen on a gut feel and then his (soon-to-be ex-)wife Christina manages to turn the disaster into a profit. Hedging is when Fixer Upper’s Chip and Joanna Gaines find a decent deal on the market with good potential and invests a couples’ money into it, knowing that the end result will be an asset worth more than the couple invested. Ok, I’ll
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Flipping Energy – Why Big Oil May Become the Next “Masters of Flip” appeared first on CTRM Center.