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Why Centennial Resource Development, Oceaneering International, and SunPower All Lost Ground This Week



What happened

At roughly 2 p.m. EDT on Thursday, shares of U.S exploration and production company Centennial Resource Development (NASDAQ:CDEV) had hit a nadir of around 16% for the week. Following a little behind was energy services name Oceaneering International (NYSE:OII), which was down as much as 12% at its worst point in the week. But “beating” them both on the downside was solar panel maker SunPower (NASDAQ:SPWR). The stock’s low for the week was a decline of just over 17%. There is a lot to take in here.

So what

Starting with oil, the big story in the energy sector this week has been the difficult negotiations at OPEC. The industry group has been talking since last week about increasing output in an attempt to keep supply and demand in check. Members broadly agree that an output increase is needed, given the continued improvement in demand following the 2020 pandemic-driven economic downturn. However, some within the group want to see their specific production levels increased relative to their previous levels and peers. While an agreement looks close to being hammered out, the internal tension isn’t likely to be over.

This is notable for Centennial and Oceaneering. The last time OPEC had a falling out in early 2020, production was ramped up in a wild grab for market share. That, in conjunction with the pandemic, led to a dramatic plunge in oil prices. So the uncertainty surrounding OPEC’s production levels today has investors jittery and oil prices have been volatile. As a driller, Centennial’s top and bottom lines are directly impacted by energy price moves, so weak energy prices of late have pushed the stock lower. Oceaneering could see a second-order impact, with the prospect of lower oil prices leading to fears of weak demand for the company’s services.

A person visibly upset with computer screens with stock charts on them in the background.

Image source: Getty Images.

Centennial and Oceaneering tend to be volatile names in the energy patch, making them both most appropriate for more aggressive investors. Conservative types should probably stick to larger, more diversified names like Chevron or ExxonMobil.

SPWR Chart

SPWR data by YCharts

SunPower is a little harder to read. The solar panel and services company saw a massive drop in its share price on July 14. That day’s news, however, was something that seemed positive — the company has been selected by Woodside Homes to supply solar systems to the homebuilder in Northern California. However, the day before, Credit Suisse started coverage of SunPower with an underperform rating and set a $22 target price on the stock. That’s below where the shares are trading, even after the stock price declines so far this week. And, today, Piper Sandler lowered its price target from $28 to $26. Investors don’t like downbeat news from analysts, and the Credit Suisse call was notably negative. SunPower’s stock has had a pretty good run over the past year (it’s up around 260%), so investors taking some profits in the face of analyst concerns isn’t surprising. That’s doubly true given that SunPower’s gain has handily outdistanced the average solar power stock, using Invesco Solar ETF as a proxy (this exchange-traded fund has gained around 90% of the past year). 

It’s also worth noting that the broader solar sector has been in a downtrend since mid-January after a strong early-year run-up. So mercurial investors could be looking for reasons to sell, as well. For conservative types, a potential shift here could be to a utility name with large exposure to renewable power, like a NextEra Energy, or TotalEnergies, which has been a major shareholder in SunPower for many years and is using its diversified oil business as a foundation for expansion into clean energy.

Now what

Uncertainty is high right now on Wall Street and investors are jittery. Swift and dramatic moves, even outside Reddit-driven stocks, are pretty common. All it takes is a little bad news and investors will drop a stock like yesterday’s garbage. It is not an easy time to be an investor and caution is probably in order. It’s why conservative and even moderate types might want to skip names like Centennial, Oceaneering, and SunPower and, instead, look at larger, more diversified names in the broader energy sector.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Dave says: If you need a cosigner, you're not ready – Northeast Mississippi Daily Journal



Dave says: If you need a cosigner, you’re not ready  Northeast Mississippi Daily Journal

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How to improve your credit score in 2021: Easy and effective tips



If you’ve ever wondered “What is my credit score?” it’s probably time to find out. Having a good credit score can make life a lot more affordable. If you’re about to buy a house or car, for example, the higher your credit score is, the lower your interest rate (and therefore, monthly cost) will probably be.

Your number may also be the deciding factor for whether or not you can get a loan and ultimately determine if you are even able to buy something you want or need.

So, yes, the goal is to have the highest possible credit score you can, but increasing the number doesn’t just happen overnight. There are important steps to take if you want to increase your score, and the sooner you start working on it, the better.

“If you’re trying to increase (your credit score) substantially to accomplish a goal, you’re really going to have to have as much lead time as possible,” said Thomas Nitzsche, director of media and brand at Money Management International, a nonprofit financial counseling and education provider that advises people on how to legally and ethically improve their credit score on their own.

If you have fair credit and you’re trying to improve the number for a house purchase, for instance, you’ll want to start working on it at least a year in advance, he explained to TMRW.

But even though that sounds like a long time away, you can (and should!) start doing things right now to bump that number up. Below, see seven things you should do — and not do — to help improve your credit score:

1. Review your credit report

Review your credit report and look for errors that might be hurting your score. Morsa Images / Getty Images

The first thing you’ll want to do is pull up a copy of your current report so you know where you stand. You can get free reports from all three agencies — TransUnion, Experian, and Equifax — at Nitzsche said it’s important to take a moment and understand the financial snapshot of where you are today and where you want to be.

You’ll also want to take some time and look for any errors on your report, which could negatively impact your score. “If your name is misspelled, that’s not going to hurt your score,” he explained. “But if you see a late payment or missed payment (that’s in error), or maybe you have an account that should be reporting but isn’t, then that’s a problem and that will impact your score.”

If there is an error, you should dispute it and try to provide as much proof as you can.

One other thing: You can also ask a creditor to remove an issue if it’s been corrected (i.e., if you paid off a collection debt). Nitzsche said it doesn’t hurt to ask and the worst thing they could say is no.

2. Have good financial habits

“The biggest part of your credit score is payment history, so the most critical thing is never missing a due date,” Nitzsche said. Set up a monthly autopay or add all due dates to your calendar so you never miss a bill.

You can also achieve a higher score when you mix different types of accounts on your credit report. It may seem counterintuitive to get extra points for having debt in the form of student loans, mortgages and auto loans, but as long as you’re paying them off responsibly, it shows that you’re reliable.

3. Aim to use 30% or less of your credit at any given time

Know your credit limit and aim to only use 30% or less of it for a better credit score.Tim Robberts / Getty Images

Know your credit card limit, and try not to use any more than 30% of that number each month, otherwise your score could lose points for too much credit utilization.

Another thing you can do is ask your bank to increase your limit. “That will give you more flexibility to spend more,” Nitzsche said. You could also pay it off twice a month to keep the balance low. But he does warn that you never know when the balance is going to be reported to the bureau. It can happen at any point during the month, so it might be the day after you make the payment or the day before. “You don’t necessarily want to use the card and pay it the next day because that doesn’t give the bureau the chance to know that you’re using it,” he said.

4. Avoid requests for new credit

If you’re looking to increase your score around the time you want to buy a house or car, you won’t want to open up a new line of credit, like a retail card, credit card or loan. That’s because “hard” credit inquiries like those can lower your score, and sometimes it comes down to a few points over whether you’re approved or what your rate will be, Nitzsche said.

“Soft” credit inquiries, like when an employer checks your credit or when you pull your own report, won’t affect your score.

5. Keep all accounts open, even ones you don’t use anymore

Even if you don’t use that credit card from college, it’s a good idea to just keep it open because closing it could hurt your score. Nitzsche explained that you’ll be dinged some points for each account that is closed. If you want or need to mentally break up with a card, just cut it up instead.

6. Build your credit if needed

If you haven’t established credit yet, you might not even exist … in the credit report space, that is! “If someone has never fallen in delinquency on any subscriptions or utilities or never had collections on anything and they have not utilized credit cards or loans in the past seven to 10 years, they may not have a credit profile at all,” Nitzsche said. “That presents a challenge when you want to buy a home.”

If this sounds familiar, you may have to get a secured credit card where you put down a deposit, he advised. “You still have to make payments and use it responsibly. Not all banks offer them but you can usually check with your local bank or credit union.”

7. Reach out for help

If you want personal guidance on boosting your credit score, make an appointment with a credit counselor.kate_sept2004 / Getty Images

There are many apps and credit-monitoring services that can help you stay on top of your credit score. You could also reach out to a professional credit counselor who can help you navigate your specific situation. (Here’s a good resource about finding a reputable service.)

One last thing: Nitzsche warned that everyone should beware of credit repair scams that claim to be able to increase credit scores for an advance fee to get accurate negative information removed (even temporarily) from credit reports.


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Lifestyle News | ⚡How J&G Credit Recreations Assists Individuals to Gain Financial Stability Through Credit and Homeownership – LatestLY



Lifestyle News | ⚡How J&G Credit Recreations Assists Individuals to Gain Financial Stability Through Credit and Homeownership  LatestLY

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