Mark, the reality of all this lays at what the economy is doing. Scare stories of cheaper oil are no more to be given serious consideration under 80 bucks imo. Remember that for years we were told oil was going to 150 or higher? High oil prices are now a part of the equation in the world market. I believe way too many governments and big companies NEED oil to sell high as part of the control mechanism. I also think oil should be viewed as the new gold or silver standard for the dollar as the two are so closely tied to one another. The correlation of all that Fed dollar printing had to express itself in some manner. A lower oil price is an expression of a air being let out of the inflation baloon.
Great post, doesn't seem to be doing anything for the share price though.
Just crazy how short sighted people are. They're so focused on a temporary drop in oil price. It is the LOWEST its been in four years. Not four months.
It's crazy to think HCLP is going to suffer for long. Every indication that sent this up to begin with is still in place. Oil ups and downs are going to happen. Right now demand is low because the economy sucks. Contracts for 3 dollar gas are off the hook. Once the big guys get 'their' energy needs met looking forward you and I will be back to 3.80ct gas.
USO has dropped roughly 25% from its high. Find any oil related stock that has dropped 50% or more from its high and you can bet you'll make terrific money. Unless the oil stock has some other reason for its drop, its going to do well over the next 12 months.
About 4 decades ago a very big communist KGB officer defected to the U.S. He had a simple take on the difference between communism and capitalism. Quote; " With communism you have lots of money but no goods to buy. With capitalism you have lots of goods but no money to buy them ".
rb, thing is, there just aren't any legs for a recovery without an increase in energy use. The less demand, the more it points out the slowness of the economy. And it's pretty much impossible for any sector to do well at that juncture.
No direct connection is necessary. Once the merge is done a foreign railroad would be forced to make allowances to right of way. There is past presidence in past rulings to make it happen.
News is starting to pile in on businesses and profits. Also forward outlook. Transportation stocks and companies like CAT are on the move up. They depend on energy----oil energy. Expect a 5 to 8 dollar day up here before year end.
Why don't you guys just sell 2/3ds of your position in AUDC and buy some of the others in this space? That way you can sleep at night.
Just to note; most railroad cars hold about 100 tons of sand. Bigger ones can go to 130 ton. So yes, a single train of 100 cars would equal the 10,000 tons spoken of.
A few weeks will tell how this theory works out, but, isn't it funny how the price of oil dropped just before the governmen ha tofigure it into the COLA? Well, anyway time will tell.
These oil fields are NOT going away. I must point out a little known fact---Every dollar spent in a local small town is spent 7 times in that local before it leaves. IE--he butcher,baker, tailor etc. Just what does this mean? Just this, home grown energy sees its way into many pockets before it leaves the states. That my friend is what BUILDS an economy. And our nation. Energy independence builds a strong country. And if any of you want us to continue to be able have the resources to send troops 8 thousand miles from home to fight----you'd better get on board with the Bakken.
There is ONLY one railroad that the government would allow to merge with it. That's the KCS. And, it makes perfect sense. Mexico and Canada are doing very well. Lots of money to be made.
rb, I hardly think Halliburton would be signing on for increased deliveries of sand from Hi-Crush as of yesterday if they believed your scenario. I'm with Stagg on this one.