Seems the market sold on expectation of a d cut, now flat on the reality. Could be the bottom, but who knows. The ECB QE may move things in the next few months so people might need energy sources again ;^Q
I compared the 2 year charts of
BTE -68%, ERF -37%, PGH -44%, LNCO -77%
ERF has the most relative strength
Pick your poison.
Energy stocks are all under pressure.
Pun intended to add levity.
USO news has article about February being the low then the rally to June, traders have started getting ahead of that trade + short squeeze
LOLOLOLOL one of the funniest topics I've heard in a while. Hey, really, did you see FRO pop the other day? Seems the offshore storage idea has returned.
The way we 'guess' the future is by past behavior. A better question maybe someone else can answer: "If LINE holders through K-1 accounting defer taxation, why wouldn't a corp holding the LINE shares have the same tax treatment?"
Initial report says distribution is qualified. But this isn't the final word: "The final determination of the tax characteristics of 2014 cash distributions is not expected to be made until mid-March 2015, and at that time the company will announce the final tax characteristics and post the corrected Form 8937 (if applicable)."
If 'qualified' holds then LNCO holders will be selling and buying LINE. IMO
Talking heads are just throwing numbers around without evidence. The SA government does not publish its cost of production (or expenses). The only real numbers we have are volume and budget numbers (which include social spending). Even the reserve numbers are guesses. IMHO they'll soon be hurting. With another price downdraft they'll cede to an emergency meeting in April. So many of their wells suck water, they need constant field work. This cannot stand.
From the article: Right now, shares of Linn Energy are trading at just 76% of tangible book value, respectively, which is the liquidation value of all their assets minus liabilities.
I like buying below tangible book value. Hold this a couple of years for an easy double.
Your facetious 50 cent comment got me looking at the real cost of production (which isn't released by the SA government). I've seen $70 external break even by businessinsider; $55 to 63 by another site. A $20 number by another does not count the sea water pumping costs. But the bottom line for SA involves total social spending costs (to keep the kingdom riot free). They have a 2015 budget of 229.3 Billion. Producing and selling 9.5 million bbl per day at $56 bbl = revenue 194 billion plus 30.7 billion non-oil revenue = 224.7 billion revenue. Other sites provide a 160 billion oil revenue number (lower than my calcuation). Normally, revenue is a number that does not deduct expenses. If you figure the real cost of prodution (minus expenses) it seems SA is in a lose/lose death match.