RE:Warped Expectations Agreed.
Lots of theories out there BUT don't forget most of the names in the O & G business are just beginning to recover from a multi year train wreck.
We read estimates by Nuttal and others of how xyz will generate gazillions in fcf and too many assume it's already happened. Truth is, the quarter we're in right now is the first quarter oil names are booking some significant fcf. Big fcf is delayed to show up in Q'rly reports because of hedging but it will happen as long as oil stays at or above current rates.
Its going to take a few Q's for the big fcf $ to show up in quarterly reports. When that happens lots of funds will pile into the sector.
It was only 6 - 9 months ago that many were setting record low share prices
So, sit back, relax, enjoy the ride. Those that have taken positions already will see the biggest gains. The old saying of rising tide raises all boats apply.
The most important factor right now is that oil stays at or above current prices.
In a few Q's when all the sector names start puking out fcf and paying juicy dividends everybody and their dog will be chasing your shares.
Jmo
Glta
Nothingmatters wrote:
This market has totally warped our expectations of returns. We expect 100% of returns in a day or a week. I believe if oil stays above $70, proper valuation of oil stocks will be there. Patience is key. This summer going to be extremely hot. Pun intended. It's my opinion only. GLTA.