I stated and will state again that this could be the results or disruptions or interruptions from operations, planned or unplanned. Another words, this could be he result of damage to their infrastructure, transportation or shipping issues, strike, wars, natural disaster (Canada wildfires), OPEC freeze or cuts, or financial (let's take a closer look). It was just reported that HAL will follow SLB in cutting back services in Venezuela for mounting A/Rs. For those that don't know, Venezuela has the largest oil reserves of any country in the world. HAL and SLB provide oil services that help the customer get to and extract oil.
So if you subscribe to the camp that believes OPEC production will drop AND US production will continue to decline as a result of massive cuts in E&P:spending (just look at the Rig Counts -- 328 Oil Rigs), then oil has only one way to go and that way is decisively up. Mark this KINGCALL!
OPEC flat out at full capacity which can't be continued at this current run rate. Yes, I understand that Rig Counts are finally at the bottom of the curve and will start moving up in 2H 2016 -- you heard it hear first. But we all know this isn't a some kinda flash cut but instead the full impact of these drastic cuts in Rig Counts are just starting to be felt as production slowly seeps out of the system. This is principally due to the lag between Rig Counts and the time it takes for productions (most wells are in prime production during the initial phase of 18 months). Problem now is these wells are not having the capex investments made to take them to phase 2 and 3 because of the high costs to recover what oil is left in the reservoirs. Truthfully, when I take a step back and assess these market, one thing and only one thing becomes apparent, oil has nowheres to go but higher from here. Truthfully, this new Oil Bull will be bigger and stronger than anything else in the history of the Oil markets. Triple digit Oil will be here much sooner and longer than anybody thinks.....Sammy
Make this post and let's revisit next week. Thanks guys and I'm off now to the casino for a little action this weekend. Wish me luck again! Sammy
I'm sensing sometime toward the end of next week or shortly thereafter early the following week....Sammy
I still trying to get my arms around this latest and sharp downtrend. Thanks in advance....Sammy
Just check the 52 week high and see where were at today. The downtrend and momentum have not been broken on the downside. Are you seeing something else??? Sammy
Perhaps but my take is a little different. I expect the volume to pick up once the margin calls go out and hedge fund redemptions are executed. We shall see shortly whose right. Irregardless 8.5% is a huge move to the downside no matter how you slice and dice it, on lower volume or not. No?
Well the long tried to claim the appointment of a new CEO and board members was good news. The rally last a few days but quickly petered out. The long also claim the release of the 10K would cause VRX to surge over $40. Well we no how that played out. I'm not a newsman but strictly a momentum player but your point is well taken jgunchick.....Sammy
Thanks. So my guess of $1.6Billion is spot on. I thought you would have to go thru the 10K and look at all the debt issues outstanding, the loan amounts and interest rates to compute the interest expensde. But if they done it for us already, that's great.....Sammy
For every 1% that equates to $320M in interest per year. So if I take an educated guess at 5% then were talking $1.6B. That would be huge expense to cover....
Unfreakinbelievable Ringo. Hey I sipping my bottle of Louis XIII so have no worries this afternoon....Sammy
So you really think I'm dumb? It's clear to me that one person with three aliases is nailing everyone of my posts with three thumbs down. I'm alot smarter than I look....Sammy
I wish I had the other half of the trade, but don't. I almost was gonna buy HLF in front of earnings but decided to just continue riding VRX on down.....Sammy
I just said the same thing about my short position. But what I am so glad about is I decided to hold for a few days instead of taking profits on an intraday basis. Playing the momentum and it has been wonderful to me all week long....Sammy
There are several large hedge funds with billion dollar investments in VRX. Just go to Morningstar and look under Major Shareholders. And I just read this morning that investors have pulled $17 Billion out of hedge funds due to poor performance and high fees. Please see Morningstar and google $17Billion in hedge fund redemptions and let me know your thoughts. Thanks in advance guys....Sammy
When it rains, it pours and man is the perfect storm brewing right now. Tell me if I'm off base with my thinking here....Sammy
$6+ points in less than a week is a beautiful thing. Need to figure out an exit strategy with the intent on maximizing gains before I hit my bottle of Louis XIII....
This stock is unfire today and shorts are in real trouble here. Go HLF Go!!!
Wise guy, OPEC will struggle to maintain current production levels throughout the rest of the year. Whether they agree to a freeze or not, oil prices will continue to rise gradually back up to $60 in the summer time. However, should they agree to cut production by as little #$%$, we could see $60 very quickly with prices rising to $85 by year end. A cut is coming and that's why all OPEC countries are pumping to the max before such agreement. Can you say Oil Bull??? Sammy says.....