as long as there's a federal government with spineless politicians the stock market will continue its climb on borrowed trillions. DON"T FOOL YOURSELF THERE IS NO END TO THE FED QUANTITATIVE EASING
agree, bankrolling todays mediocre economy on trillions of borrowed money. what will the government do when there's a real depression? have us all commit suicide?
interesting. i hadn't realized the short % has spiked to 20%. thanks for the reply.
$2 decline in oil, BTU seems to correlate to a $1 PPS drop. just saying.
might as well wait for it
they reduced there ratings to hold from buy
why are the sun and wind generators stocks also correlating to lower oil prices and falling? very little, if any, oil is used in generating electricity. its all about energy btu's not what produces them.
a real cutback in production with oil drillers (shale, tar sands, UDW) going bk. beware of the highly leveraged (sdrl?) drillers.
Icahn owns 20m shares of sdrl will he offset $700m in losses against his $3b gain in netflix, aapl,& herbal life with a sdrl tax loss sale?
I agree. your numbers, after a second look, appear more accurate. thanks for your reply.
To begin with, you don't have to "over think" this:
1) OPEC,lets shorten this to the Persian Gulf States, since 75% of the OPEC production is there and most of that Saudi's. The Saudi's production costs run about $10 a barrel its like pushing a straw into a cup of loose sand.
2) Fracking can cost up to $8m a hole and runs about $65 to $70 a barrel in costs.
3) Deep Water Drilling is without any doubt the costliest. A well off Brazil ran into the multi 100's of millions of dollars when it drilled 1 mile over the ocean and 2 miles into the muck, sand and rock. Granted all ocean rig drilling doesn't run this high, cost per barrel numbers are difficult to come by, but must be extraordinary.
$5 seems realistic given the foreign and domestic shale oil production replacing opec production and opec needing to keep revenues up by not cutting back. the net effect of all of this production will be oil below $10 per barrel.and U.S. gasoline around $1 a gallon and a skyrocketing economy for everything except oil and oil related companies. deep water drilling? the oil companies won't need it.
yeah agree i've been down that knife catching road 3 times and the last time if I hadn't been diversified I'd be living under a bridge or in jail. i never chase up or down but wait for the 10-15% turn to enter. the fundamentals must be right for the entire sector not just the targeted stock as well. i never regret not entering a stock buy after sitting on the sidelines even after watching the stock double or in one case treble.
Iran and Iraq are dumping millions of barrels of oil in the market they are desperate for cash, U.S. gasoline under $2 a gallon soon
to drive out the competition and bring oil down to $5 a barrel for 9 mos and than take it up to $375, let em starve in the dark ...
agree i looked at this sdrl div 2 weeks ago and since i don't short because of countless stories depicting disastrous short sales i stayed away from shorting sdrl. now in this case it may have been the play.