FNRG sees increasing interest from investors after successfully navigating the sale of its 50.3% interest in Transpacific Energy, Inc.
The funds are starting to sell because of what is coming. There will be much lower earnings and a dividend cut for sure. Its not a bad price at this level and id be getting out. The first rig has a cost of 40$ and the second rig has a cost of 80$. Cant make any profit at those cost. Sorry, but that's a fact. Suncor will lose money until oil gets back to 70$, sometime next winter.
I doubt Suncor will drop that much. im long term, but debating if I should average down. Buffet makes his money on food and insurance , I 'll consider Pickens who believes Oil will be higher end of this year and even higher next year. So that good news for long term holders.
It is looking more and more like Oil is going to stay low for longer than expected. It is going to take a huge surge in Global demand for oil to go into even the 80$ a barrel range. That doesn't appear likely for several years.
When Suncor reports earnings in May, look out. With much much lower earnings they will have to lower or cut the dividend. Then the shorts will take over and the price will drop to 14$. If Buffet cant see this coming, he must be a fool. Id be a buyer at 14$. Our estate had over 20,000 shares at one time. It was sold out at 33$. I like the stock but not at this price.
It's down because the thing it sells is now worth a lot less than it was.
Being "excellent" didn't help Betamax.
It will be swift and it will be sudden. Buy this Suncor and hold for the dividend. Don't try and trade for a few cents a share. Remember, this stock is down for no fault of its own and WILL surge in a recovery. The market is looking ahead, normally six months. That surge just might have begun today.
Sentiment: Strong Buy