RE:The Current SituationTheBridge wrote: If you want to get a glimpse of how the Alberta economy has changed over the last few years according to Amanda Stephenson, a Canadian Press writer. Her article "How Alberta's Economy Has Changed, In Spite of Sky-Hight Oil Prices" was posted today on CBC Calgary. I think her selection of events pretty well describes the same situation that GameHost is working through itself. IMO, there are some good reasons to expect crude prices to eventually climb and have a positive impact on Alberta.s economy which will have a positive impact on GH earnings. I'm still waiting patiently (most of the time) for that rush to $12+ that Malx1 has described a couple of times and I'm a believer.
Bridge is right. Higher oil prices help Alberta. Stronger economy helps the business.
While I prefer $80 oil to keep consumers content, $90-110 may be the new norm.
Something interesting for people to consider:
Why are we at $85wti while we are in a recession?
A decade ago oil would be $45-55wti during recession.
Look no farther than the UK, CPI shifted up from 1% during Pandemic to 10% post-Pandemic.
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2022 Didn't our failing Canadian Liberal Govt Promise that the inflation was
TRANSITORY??
They did, but they were Deadly wrong. Ask anyone paying rent or a mortgage.
Socialist and Liberal govts have lulled the world into a state of Energy Scarcity. I may have alluded to this back during the Pandemic when oil was $30wti. Nobody wanted to believe that oil would rally back to the marginal cost of production $80+
So the uptick in oil and natural gas prices that may linger a decade or so, is the product of Green Dream politicians who wished the world didn't consumer 101 million barrels of oil per day.
Getting back to the story originally posted by TheBridge, it is suggesting that E&P co's have smartened up; they are buying back their CHEAP shares, paying down debt and eventually cranking up their dividends to reward shareholders. That strategy rhymes with what Gamehost has been doing the past 2 years. Another 6-12 months and the business will be in excellent health. That's when it's time to increase dividends. Get the house in order first.
Bridge, you're going to get your $12 shares if Gamehost keeps up with the NCIB.
Just a matter of time.
Thanks for posting that article. I'll share the link to it below:
https://www.thefreepress.ca/news/boomtown-no-more-how-albertas-economy-has-changed-in-spite-of-sky-high-oil-prices/