With oil down I know rigs that will be mothballed and capped off and the cash flow will go to zero. Then my buddy who had gobs of spending money will be like a person who lost his job and stop spending. His 2 tiny old wells are not viable at the current low prices and thus the end until the oil barrel price goes back into the 80 plus range. There are gobs of these old wells that are marginal and the current drop means the end of the Jed Clampett era for many folks. These old wells were dropped by the majors eons ago and tiny oil guys restarted them when oil went high. Now it is a recession for many folks in the deep south; the end of the oil boom, ie a depression. There are entire cities whose industry is oil and an oil depression even ripples into the housing market. I know home builders in the cajun state that are reducing building of homes due to this bust; ie depression.
Obama's legacy is the average Joe and Jane elected hime twice. ie they wanted all what he has done. But us who voted against him like me had my health insurance go up by a factor or FOUR. Yea if everybody is covered rates have to skyrocket
Then when the final bottom hits and many months later the herd causes it to rise many will say they predicted where the bottom was. ie sort of like predicting where one will get a flat tire
I wonder if you have ever bought any stocks before because you predict prices. Your posts sound like zero experience, thus dangerous. Having been in the market since the Dow was 800, I wonder if you are old enough to even buy stocks and your game is to just create odd trouble.
Yea and New Orleans has banned football and beer and the south has banned pickup trucks too. With all solar now oil is obsolete too
Calling a bottom is a fun game but often wrong. Much depends on the barrel price hitting a bottom, and it has not yet done so. The lower oil price for a long time makes the stock risk much higher. Folks on this board over the last 6 months have thrown out numbers of a bottom of 7.5,8,10, 3, 25, 33, 1.5, 2, ZERO, 9, 16, 20. i.e. about any number you want. Basically it is all guessing, i.e. no science, no magical ball to guess a bottom. One is dealing with too many unknowns like the barrel price in the future, PLUS fear of Mr Market and folks fear that the stock will be worthless, or go to 50 in 2 to 5 years. Much of the price is herd behavior like a pack of birds flying and has nothing to do with finance. The company has much debt thus a risk if oil is low for many years.
Heck; hold off for 1.50 per share and buy more! At 30 cents per share you can buy 10X more than when at 3 bucks!
Folks said that 2 and 4 weeks ago too. Thus where is the bottom?
There are currently 469,250,933 shares outstanding. 1 quarters dividend of 1 buck would be 469 million bucks paid out. If Today they bought at 11.6 bucks they would have nabbed 40.4 million shares. 1 years dividends of 4 bucks buying at 11.6 would be about 162 million shares. To buy all 469 million shares at 11.6 bucks would require 5.44 billion; ie the market cap at would be about 3 years of dividends
It has to be the same stock to trigger the wash rule. Ie if you sell Ford F at a loss and buy GM 1 day later they are different companies; thus no wash rule.