the comment was sector specific, yep I agree the broad market is hitting new highs, but I think we can all agree the energy sector is being hammered, even big boys like Continental Resources are paying the piper. We don't have an energy friendly leader...so I think OPEC/ Saudi's will pretty much have their way for a while, but it will still will be a boom / bust cycle. Isn't the first cycle and certainly won't be the last....let's just hope it doesn't last.......too long. JMHO GLTA
there will be turmoil in the sector. Note the Opec oil Minister predicts $200 oil sooner rather than later. Once the carnage plays out in enough regions of the world..we'll see a swing from over supply to under supply. In times like these..you shelve good stocks...and find other ways to spend your time. AXAS is well suited to weather through the cycle...so it's just on the shelf. JMHO GLTA
Gotta give it to OPEC....masters at flogging our politicians when and where they want. Don't have an accurate score tally...but it's been a rout and most likely will remain so in future years.
to stymie USA production and it will work unless thwarted..and so far no effort has been put forward to thwart OPEC. I would do two things, lift the ban on crude oil export and I'd also put an escalating tariff on imported crude oil at an $80 WTI thresh hold. If a similar situation were occurring in wheat, corn or pork bellies we'd see all kinds of protectionism take place for US producers....but for oil.....not so much. Oklahoma is anticipating the loss of 26,000 jobs in the near term directly related to the downturn...I would imagine Texas, and the Dakota's will be impacted to a much greater degree. It would be nice to see preemptive actions rather than reactive actions after the harm has been done....but our politicians tend to show up at the scene of the wreck rather than preventing wrecks. On the bright side, as the price falls production will soon follow. Many stripper wells will begin closing in as the cost to operate will exceed revenue generated. Once closed in many can never be economically restarted. During the 90's an estimated 200,000 stripper wells were shut in when oil prices plunged and gave us the 79 cent a gallon gas...it was short lived but the damage was done. OPEC realizes the USA is a patsy when it comes to energy and each time they have been in control until they achieve their goal...and it looks as if it'll be a repeat. Politically they have picked perfect timing as they have disarray between the dems and repubs and a lame duck leader....so little chance of any bi-partisan effort to protect the US energy market. So ...I haven't left....didn't sell my AXAS, just aware of an ugly situation that I can only watch and wait. Does anyone realize how many of Bob and gang's stock options are now under water ?
There's a whole lot of folks feeling the pinch, like the $5 secondary folks. So I ain't happy, but there are others who are worse off....still a good stock, and a good company...just gotta let time and events run their course.
AXAS is well positioned and Bob is doing the right moves. If reducing capital spending from $200 million to $54 million isn't a clue to the havoc OPEC is wreaking...then folks are blind. Watch what happens once the carnage has played out. OPEC is currently taking some short term pain in exchange for long term gain. It's called predator pricing...use your size and volume to snuff out competition...once you've buried them you will again own the market and pricing power. I still have my AXAS shares..but unfortunately they are shelved as this appears a longer term cycle than I had hoped for. I'd like to be optimistic that our politicians were better than they appear....but that's rather naive. Looks to me like the future and the cycle timing is totally at OPEC's discretion. JMHO GLTA