TSXV:CEN.H - Post by User
Comment by
CalifDreamingon Dec 16, 2008 3:56am
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Post# 15647981
RE: RE: RE: News: 5000 bpd and new discovery.
RE: RE: RE: News: 5000 bpd and new discovery.What does the price of oil matter? If oil is $100 or $50, companies should be valued based on cash flows and growth prospects.
CEN, like many other plays, has been sold down far more than the fall in oil. And in CEN's case, they've drilled wells that are 3x better than expected, making the selloff worse in relative turns.
The selling has little to do with fundies, the price of oil or reserves. Most of it has to do with Hedge Fund liquidation/redemptions which will end soon enough, most likely in Q1/Q2. In conjunction, the US$ will resume its inevitable downward trajectory and oil prices will stabilize and perhaps rebound.