IBM had a great scheme going for years of buying back stock. But that game is over now! It's time to pay the piper who led so many over the cliff with this buyback scheme.
Friends, SD is still in a strong downtrend and held captive to declining oil and gas prices. Those prices are the lifeblood of this company. I think another test of 3.50 to 3.55 is coming within a month.
I still see $5 as strong resistance. I would not buy until it's busted through. I would buy some at 3.50 support, with a tight stop loss. This is one risky volatile stock with very poor technical and fundamentals. Are you aware of the debt load and how oil price affects cash flow? A stock is only worth the sum of its cash flow over many years.
Yes, and Goldman was likely buying puts while recommending, just like subprime all over. These banksters have no ethics.
Price going to $30 at a minimum. The world is overflowing with oil and it has no place to go but down in price. I really think it will hit $25 sometimes in the next year. I know, I know, that can't happen you say!
I now strongly see CVX at a 100 dollar bill. Earnings and future growth is going to be horrible for a few years.
Oil could go much lower. If you look at the charts, support has been busted and oil is going somewhat lower.
Most people don't realize how fast oil prices can plummet. Prices fell from $147 in 2008 to $35 in 2009!! The Saudi have just stated they want the oil price to stay low for an "extented period of time". Probably two years! Again, they are going to try and bankrupt some firms!
Just looked at the chart and see some intraday resistance at 3.65. So for you speculators, if it closes above 3.65, it might be worth a trade on a very short term basis.
Will 3.50 hold and become support? We will know at the end of today. If it drops through by 1 penny, there's still no bottom in sight. Especially, since there is a glut of oil and Saudi just said they are comfortable with low oil prices. Hint, they want to drive out the week players and get their market share back. Just the opposite of the oil embargo. They are going to flood the world with oil is what they are saying, so how does this affect SD? Not good, since heavy debt and no cash flow could unfortunately sink the company.
People and speculators have been trying to call a bottom is SD for 3 months to no avail. I can see this stock going to $3 if crude continues its spiral down. I really see no reason why crude should not drop another $10. If you look at the debt of SD and their cash flow, you can make a strong case for lower prices.
It must retest 3.50 now and hold and that may become support. Right now, there is no support in this stock. It can easily drop to $3. My take, who wants to hold such a debt ridden stock? Just too much risk, that's why support must be established before a buy.
It's never to late to sell. You could be saying this when it's $3 and it sure looks like it's headed there.
People will continue to use oil and gas again. However, the cost might be 50 percent less. After all, crude was trading at $10 a barrel about 15 years ago. It's shot up way to high on inflation expectations that never happened. Were now likely in deflation for a couple of years. The Saudis want to bankrupt as many small companies as possible to get there market share and price back up. Just way too much oil, too much gas and too much debt in SD to invest right now.
Lawler can't stop oil prices from going down!! Opec is flooding the market and there's a world wide slow down in the economy. Lawler can't stop that. It will go to the next level of support which is 16 my friend.