Somebody must think they will be making money. I don't believe how the value of your company goes up as your sales go down. Even future sales will be down. The contraction in drilling comes from the diversity of oil sources. The middle east, Europe, and South America are pumping and fracking oil and gas as much as we can store. The hype seems way more than the reality. PE ratios are way out of historical norms.. I see I'm wrong in the stock price, but the fundamentals can't be correct. This market is out of control.
Seems like they are pulling teflon out of the ground instead of oil. Hard to believe how the market is down, oil is down, yet this stock keeps rising. I don't understand the numbers. JP Morgan got it right. Downgrade. Their PR department should be up for an award. Making money on termination fees can't be healthy in the long run.
Huge upside today, but not much has fundamentally changed. There is still too much oil being pumped out (by a lot) for needs. Perhaps the needs will change, but it might take a bit. Further, just because an agreement is set, doesn't mean it will be followed. Look at the players in this agreement-Russia, Iran, Iraq, Venezuela, Saudi Arabia. Talk about a motley crew. Do you really trust any of them to keep their end of the deal?
The problem with this downturn is that there is too much oil being produced by too many companies in too many places. Iran's production and sales are just getting going. Even if the Saudis agreed to slow production, South America can't afford to. On the usage side, China is shrinking. Also, Obama keeps pushing green over fossil fuels and don't expect any favors if Bernie or Hillary get into office. Too much being used by too few continues to be a recipe for disaster. Down we go some more.