It will get cold in the eastern US soon, the stock will rock big time. I love STO. But if you are looking for a healthy diversification in your oil holdings, check out TNT. The stock got a little undervalued in recent days and is poised to take off on Mon.
Can't take the advice to buy TNT instead of STO.I owned TNT at $3.00 and sold at a huge profit only to see it sky rocket later. However, comrades, the current big jump is because the Kremlin has given the Tatars a special deal, lower taxes than the rest of the Russian oil patch is paying. I have no idea how this will all work out. Putin has given a huge boost to TNT and the Tatar tycoons of the Middle Volga region. All who own the stock are benefitting from Putin's deal with the Tatar leadership. If Norway cut Statoil's taxes, Statoil would also jump. STO will not get such a boost. In fact, Humberto Chavez has just raised STO's taxes in Venezuela. But STO is and will remain a qualitatively better company than TNT because the Norwegian business culture and climate are better. Putin gave TNT a great financial boost because TNT needs more capital to repair and develop its operations. I hope TNT does well because it is the engine driving much of the economy in Tatarstan and its prosperity has taken the edge off some potentially troublesome ethno-political problems in this region where elites of Russian Slavic-Christian and Russian Turkic-Muslim heritages have cooperated and competed for centuries. Russians and Scandinavians also know how to cooperate and STO will be working with Gazprom to develop the huge natural gas reserves on Russia's "Scandinavian" shelf. Vikings and Tatars have and continue to play a role in Russian history. Vikings went all the way to the Middle East via Russia. And, this is what we need now, a grand energy alliance to prop up the prices.
Thanks for a great post! You obviously know what you are talking about. Honestly, this is the best post on TNT I've seen so far. And it's not even on TNT's Board! :)
But I have to respectfully disagree with you on your assumption that the company's price has skyrocketed due to Putin's breaks to Tatars. The whole Russian stock market has been doing very well recently, due to improving fundamentals. Other Russian oil companies has also enjoyed huge increases. Unfortunatelly, they are traded only as over-the-counter stocks in the US. That's why I'm recommending TNT.
You are right that TNT enjoys a very special relationship with both federal and local Tatar governmnet. That's the best insurance against any kind of Yukos-like delelopments!
I agree that TNT is somewhat of a speculative buy. So, everyone, please don't use it as your core holding! That's for sure. But TNT is still great and currently undervalued entrance into the Russian oil industry. Besides, it's great for diversification.