RE:RE:Sinopec acquires stake in SyncrudeCyclicals are always like that and have always been. If your investment horizon is 1-24 months obviously you should not invest in cyclicals unless you like to gamble.
When prices are high, companies invest in new production and supply becomes higher than demand. Then prices drop because there is too much supply, investments drop, until demand is higher than supply. Then prices go, up, investments go back up in a hurry, and people invest when prices are too high! Then supply increases above demand and it starts again... That's how all cyclicals work. No rocket since here.
And it is no rocket science we are a tthe bottom of a cycle with over supply and investments dropping quickly.
And oil, contrary to other cycles has conventional sources which will continually to drop and have to be replaced by more expensive non conventional sources. Oil will go back up because companies are cutting back on investment and demand will outpace supply. And with oil, the more conventional sources deplete, the higher will be the prices.
People push the panic button, capitulate, and sell at the bottom. That's human nature. COS is fine on it's own. The shareholders nor the board put the "for sale" sign up. It's just an arrogant Suncor that wants to take advantage of the situation. The know COS shareholders have already lost a lot of value, so they are hoping they will accept an offer at the bottom of the cycle. I'm certainly not tendering my 15k shares.