I am long RIG. However, we're seeing the electric car market growing as technology improves battery performance and extends driving range. My question is: will this hurt RIG and other drillers through a reduced demand for oil? I know oil is used in the manufacture of plastics, carpet, roads, heating oil, etc, but I think the predominant use of oil is in making transportation fuel (i.e., gasoline). Hence I fear electric car growth will hamper RIG's growth. I hope I'm wrong. What do you guys think?
Tried to post a link earlier but Yahoo somehow didn't post it. Anyhow, here it is. Looks like 60 Minutes will indeed rerun the Lumber Liquidators story. Bring it on, I will buy more at lower prices if available.
Actually, it's worse than that for the shorts. Shorts are responsible for the dividend. They are charged for it as long as they remain short. It gets expensive when you try shorting a dividend-paying stock.