Ya', just started scaling into a position myself, with a first buy at $2.66. Oil and gas are just too cheap right now. At times like these, when it's happening, people seem to think that it's the new norm, only to have prices rise significantly, only to look fondly back upon when gas at the pumps, was sub $2. These are the Good Old Days, but NOT likely to be around for very long imo.
Sentiment: Strong Buy
I would give it a 20-25% chance. Although everyone will be driving Teslas and Toyota Priuses in July/August (lol), it really depends on the moves OPEC and Saudi Arabia make. And with ISIS terrorizing the Mid-East, if even a small producer gets hit, it will spike crude prices. It's all based in sentiment.
So maybe risk averse investors should soon go long GSG ... I mean UWTI and other hydrocarbon related instruments.
Plenty of scaring-out over the last couple months. Now as we plod along in the $40's, how many people can take the mental anguish before they just quit on oil. Lots of folks are offering reasons why oil will stay cheap or go cheaper (over supply, less demand, Russia, ISIS, Saudi, China, Fracking, Dollar/Euro), but it's still the most important resource on the planet for economic growth and stability. I think we're done going down signifcantly, but theyll still try to wear me out of my UWTI. Avg cost = $ 2.94 , looking for $ 3.50 - $ 3.75 soon, very soon, because holding this fish even in a flat market still stinks worse every day.
UWTI was almost 20 about 3 months ago. Question: What's the percentage chance that UWTI will return to 20 in the next 6 months? Looking forward to see the Board's collective wisdom response. Cheers!
if you look at the chart, oil was $105 in June and UWTI was $35. If the oil drop 34% that it did ( 60%), UWTI must be vanished already but it didn't!
what if WTI continues downward trend next week and drops 5-10% Do you have a stop loss? I am thinking of selling this if WTI drops below 44.5 next week. Any thoughts?
It resets from a new "base" every day Depends how much it rises per day, whether gradually or in bigger daily moves.
Same on the downside, otherwise it would go to ZERO with any downside move of 34% (34 % X 3 = 102%), at least in theory.
You can calculate it. if oil goes to $65 from $45 means $20 gain. 20/45 x100%= 44% x3 (UWTI is x3 oil long)= 133%. so UWTI can goes from $2.68 to $6.24. But if you look at the oil price chart you will see on 12/01/2014 the oil was $65 and UWTI was $11.08. So my calculation is not accurate.
I'm a short term player in this or any other 3 X speculation vehicle of this kind. By short term I mean less than a week. If OIL pops a few $$ I'll probably be out, at least for the time being.
The "decay" in these instruments is murderous. Intended only for short term trading. If you want a "buy and hold" bet on WTI's upside, I'd buy a quality small or midsize driller like CRZO or AREX.
Just my opinion..............Kel (holding AREX too)
If a company has 200 million shares outstanding and the shares are trading at 20 cents each, a 1-for-10 reverse split would reduce the number of shares to 20 million, while the shares should trade at about $2. Note that the company’s market capitalization pre-split and post-split should – theoretically at least – be unchanged at $40 million.
But in the real world, a stock that has undergone a reverse split may well come under renewed selling pressure. In the above instance, if the stock declines to a price of $1.80 after the reverse split, the company’s market cap would now be $36 million. Conversely, with a forward split, the stock may gain post-split because it is perceived as a success and its lower price might attract more investors.
In the vast majority of cases, a reverse split is undertaken to fulfill exchange listing requirements. An exchange generally specifies a minimum bid price for a stock to be listed. If the stock falls below this bid price, it risks being delisted. Exchanges temporarily suspend this minimum price requirement during uncertain times; for example, the NYSE and Nasdaq suspended the minimum $1 price requirement for stocks listed during the 2008-09 bear market. However, during normal business times, a company whose stock price has declined precipitously over the years may have little choice but to undergo a reverse stock split to maintain its exchange listing.
A secondary benefit of a reverse split is that by reducing the shares outstanding and share float, the stock becomes harder to borrow, making it difficult for short sellers to short the stock. The limited liquidity may also widen the bid-ask spread, which in turn deters trading and short selling.
The ratios associated with reverse splits are typically higher than those for forward splits, with some splits done on a 1-for-10, 1-for-50 or even 1-for-100 basis.