Well, I can only guess, but I think that the recent news "U.S. Plans to Sell Down Strategic Oil Reserve to Raise Cash" (see Bloomberg) doesn't help oil prices as well as drillers tightly coupled with oil price.
Fundamentally, the glut is here to stay for a couple of months. I recommend you to go and read article "Day Of Reckoning For U.S. Shale Will Have To Wait" (oilpriceDOTcom). It says that a couple of speculators were counting on credit line cuts followed by bankruptcies of some shale oil companies during the autumn. However, it didn't happen or only at very limited scale.
Very atypical and irrational. Oil down, Moody's downgrade with negative outlook. Both backed up with insightful reasoning ... I don't get it. Who is buying?
Do you also expect some kind of "sentiment turnaround" for chinese micro caps? I think nobody sane could believe chinese management of any company after so many examples of frauds and scams.
Do you want to day trade AXN? Well, it might be interesting right now. However, long term it's going down to zero as its AOBI fellow did
Are you serious? Insiders' stake is worth only a couple of millions right now. And that's nothing if you compare it to the assets siphoned out through buchang plot
They allowed day rate to be reduced by roughly $100,000 for one year contract extension. If I read it right, they sacrificed $73M of revenue for the period 4Q2015 - 2017 for $182M of backlog for 2018 (mainly).
It's nice to see contract extension at the current market condition. Especially for their flagship. However, the price for it seems to me rather high. Overall, I consider it to be slightly positive news.
Sooner or later, they will give up and go dark. They have nothing to lose. SEC and market rules are just a pain in the #$%$ for them
I completely agree with you! Oil prices will recover sooner or later (ok, later is more probable) due to fundamental drivers like those you described. Right now, ATW trades like there's no tomorrow. I expect global economical as well as political drivers to prevail (as always) and oil recover to $60+. The point is that with ATW shares you have a lot of time to wait no matter if oil recovers a little bit in 2016 or even 2017.
Of course, if low oil is here to stay for three or more years, that would be a different story. However, low oil prices for such a long time would force Russia, Brasil, Venezuela, Nigeria, ... to go belly up and I simply don't believe it's going to happen.