No you don't. You are not buying this company you are just playing OIL commodity indirectly via someone who is super highly leveraged . This company is already in trouble.
Simple question ? Would borrow $90k at 6 or 8% rate along with your $10K to "trade" (not invest) stocks ? Actually commodity trading is way more riskier than stocks. Basically you are just dabbling.
Hope you understand. You are just trading or rather gambling on an highly leverage OIL instrument. But it does not look like you too. Hope you are buying other stocks are 3 or 5 x margin as well..
Not when alternative technology develops at a faster rate than OIL consumption. It is the technology that just in 5 years have lead to excess production. The world may not need more OIL
Fundamentals were different. Total global consumption was less than total production. Now it is reverse and so it can stay lower for number of years.
It would be stupid to make any acquisition in this turmoil. We need to look at next two quarters of earnings to do any sort of analysis. If they do it will tank the Exxon stock.. Look how much grief have bank stocks have to take on forced mergers. Line is like the Countrywide.
Total Stupid. Always makes stupid comments after the fact. According to this guy 10 year should be at 3.25% But is at 1.75%. I am going to put him on ignore now.
Total B.S - Did you or anyone anticipate this or factor this financial event ? It is easy to make stupid comments after the fact. OIL is down so everyone starts make new predictions after the fact. Swiss bank currency decision is same. So is 10yr bond way under 2%. None of the smart pundits realized any of this in all of 2014. Now everyone is talking deflation. Again everyone is going to be wrong and there will a new event which nobody has any clue about. AGAIN they will make next of set of stupid predictions and analysis after the fact. Which is pretty useless and waste of time.
I bought it recently and sold it for a loss. At $40 OIL it will take forever to pay debt and especially if it is costing more to produce. There is no way you payoff your credit card with minimum payments. I think it is head to $2. This and LINN both will file chapter 11 in few months. There is no Fed bailout here unlike the banks to take away their toxic assets.
They are all leverage with current price of OIL it is upside down scenario. They have to foreclosure or do short sale or rather re-structure the debt. It is take several several years to pay the debt. I am losing money on this POS too.. I am going to get soon. This will end up around $2.
Why is stock dropping like a rock! Why are cutting capex, dividends worried about debt ? What about 2015, 2016 and 2017. Will they even exist in 2017 ?
Watching does not help. If there is a change in situation markets move very fast and I can guarantee you that you will not be able to trade until the move is already happened. It will move up a $1 in flash of a second.
World economy is not slowing or growing at the rate that OIL needs to jump from $40 to $140 to $120 to $45.. Blame it on the speculators.. It is a Wall St. problem not Saudis or OPEC, nor is China and Europe slower growth. But these leverage instruments always get killed when underlying asset drops such rapidly. Forget BBEP or LINE Wall St or Hedge funds are capable of destroy complete countries Right now it is foreclosure crisis in OIL. Just like the banks Lehman, Washington Mutual, and number of them that collapsed. There will be some in OIL industry as well..
LOL. It is not going to be as easy. These are obvious things to do and nobody makes money on this. New suckers are born everyday. Wall St desperately wants to unload this overcapacity. I am sure we have people saving some barrels in their garage as well.
LOL... Billions have been lost.. People have been burnt badly. I doubt it is waiting to go back in to OIL. Once Gold corrected, have you seen any big moves in Gold.. Once speculative money is out it is out.
Does not matter if OIL climbs, they cannot turnaround jump production. It will be more difficult to secure debt for further expansion. Market share is lost. Why do you think Saudi's don't want to cut production. Because if OIL does go up and you cannot ramp up quickly in a month or two to exploit higher prices.
It is funny that people are now researching OIL and OIL prices all over the world, etc like crazy.
I bet nobody did this when LINE was trading at $30..