RE:Don't Fall For all The Bad News
It makes no sense to me to be holding or buying Ithaca or any oil stock if you believe, as I do, the price of oil is going to get weaker. IAE is trading based on the price of oil. There is nothing the Company can do to improve their share price at this time. It doesn’t matter if a Director buys shares, it doesn’t matter if the platform actually sails on time, it doesn’t matter if the Company borrows cash to buy distressed assets– or worse, dilute the issue to fund an acquisition. The only thing that matters to Ithaca is the price of oil.
If you think the price of oil will drop for seven months, you sell now (and take the loss for most people) and buy stock back in six months and lots more of it for the same amount of money. If you haven’t figured out that you’re doomed to loose money in the stock market. You only need to look at a chart of the price of oil and the share price of Ithaca to realize this for the past six months
I’ve sold most of my position in Ithaca and I’ll wait for the fundamentals of the oil market to clearly reverse before I buy back anything, possibly next March after refineries shut down for spring maintenance and US reservoir capacity reaches maximum capacity. That’s when we’ll see capitulation.
This isn’t a bad time to be 90% in cash.