RE: RE: RE: Jennings Capital
I believe they have been out and about, but right now folks are taking their money off the table and plunking it under their mattresses. Eventually we will see one more major correction (probably 3 to 6 months out) owing to the Euro and US problems, and then the market will start to rebuild. There is little point to pump up the story just now for several reasons, firstly they would be trying to rally into a bear market. Secondly, they will need a quarter or two for the market to fully understand the impact of their major acquisition. WFE share price seems to be built in for $50/bbl right now, so for me it seems to be a safe place to leave my money.
In the meantime the WFE team is executing very well and eventually their efforts will be rewarded. I am hoping the Euro crisis plays out sooner than later, so we can then start to move forward again. Right now the market manipulators are squeezing everyone out of the market, but eventually the money has to flow back.
Long term the oil price will rise again, but it has been high for quite some time so it might need a significant correction to keep folks honest, particularly the speculators that bought on margin. Any correction will be short lived (3 to 12 months) since eventually demand will come back.
In the meantime, I will watch and try to pick up some more WFE near the bottom of this cycle ... which in a normal year means right now or perhaps in a couple weeks time. WFE simply cannot stay at its current SP unless oil drops to below $50/bbl and my bet is that we won't see that this year. Therefore, come Nov to Feb when the sector gets the money flow, the WFE SP should go well above $8 and maybe higher depending on macro economics. I typically do not play the swings but now or soon seems the time to load up.
Good luck to all.
dmacd