The energy metalAs oil gets crushed to 17 year lows, the Economist predicts it will take over a year or maybe two to recover substantially. This of course does not bode well for the energy metal. It used to be this catch phrase was a good thing. If you've made MLY your core moly position, good for you. You've invested in something that is selling substantially under cash on the balance sheet and has a number of smashed up holdings that you get for free. A lot of wall paper in those no mine, no mill, no hope holdings as well. Speaking of getting crushed QUA under $3, I got in at $14 to sell at $11 a couple of months ago, and it is now under $3. Lets hope Sprott hasn't been too quick to take advantage. That he hasn't added to their buyback quota recently bodes well. It will take years but eventually buy backs will lift the NAV enough to ease the pain. If the hedge funds that own us get into trouble then we're screwed again (I think this applies to ANY stock in any market!!!).
OPEC meets on Dec 17th to discuss and announce cuts. Peak oil doesn't seem so real right now!! and I note that financial sense online is extremely biased to their investment thesis'..... will be interesting to listen to what they have to say this week. The betapro nymex etf has been crushed from $48 in July to under $3 - my best idea to play a leveraged rebound when we get it in oil prices. However if the derivative market collapses in some meltdown you may end up w/ a stock cert to nothing. Could it happen? If it did wouldn't if affect EVERY ETF using derivatives?? No one has speculated that to my knowledge, but my paranoia is such that I wouldn't bet the farm either. Most takeouts require financing and it will be interesting when the takeouts start in the oil patch. Ah, so this is what a bear feels like, I'd forgotten.
Similarly, MLY would make a heck of an interesting bottom fish given its 40m x $..77 = $31m price tag and Sept cash in the bank of $45million - $5 million for physical moly adj = $40 million. So you can buy mly for 77% on the dollar. That's a still a good deal and darn better prospect than owning a jr pile of dirt in my books.