In this video, Motley Fool energy analyst Taylor Muckerman highlights a major issue for any investor following energy stocks: the idea that derivative trading, and hedging strategies to offset the volatility of the commodities these companies trade in, can really skew their year-over-year results, despite having deceptively high growth and revenues. Muckerman takes us through some key examples of what can happen when investors don't take these important skewing factors into consideration.
Take derivative trading into account.
About the Author
Taylor Muckerman was lead energy & materials analyst for fool.com from 2012-2013. He is now Head of Retention for Motley Fool Canada.