Warren Buffett (two t’s) is likely in it for the yield and eventual appreciation that if it took longer than his lifetime, he’d be ok with.
But why we’re not in it is: 1) We’ve got plenty of energy exposure and adding another energy stock doesn’t add value in diversifying anymore and 2) they carry way too much debt and there are better picks out there.
So, it doesn’t mean that stock can’t go up. It means its higher risk than I like due to it being debt-heavy. From a technical standpoint, it could have a snap-back…but I could say the same thing for our energy stocks that have far better fundamentals. And our confidence comes from the strength (and cheapness) of the fundamentals.