RE: What's Up???? Oil is going to remain under pressure through-out the summer and into the fall. (although on a side-note, gas at the pumps in Vancouver is at an all-time high of $1.48 per litre??!!) There are too many macro factors in place that bigger fund managers can't help but SHORT SHORT SHORT. Full disclosure I own this stock at $12.39. As my theory is that we are going to flirt with mid to high 70s in Oil prices I am going to sit on my thumbs. I'm looking for the best average down opportunity. If I put in 50% of my first investment at these prices I bring my SP to $9.80ish and if I invest equal weight of the first entry that comes down another $1. And although there may be some "dead cat bouncing" in the price of oil after last Friday's decline, this is not the summer of $120 oil so more pressure will remain. Won't matter for long term holders because Oil under $70 is unsustainable in the Alberta tar-sands and the Saudi's perfer $100 oil. Any pressure that drives oil into the 70s or even 60s would be short term at best and are unrealistic in the long term. This would only garuntee a buy opportunity and an even better chance for me to average down. I'm going to wait until August/Sept before I flirt with the idea of averaging down because I think Oil has not found support yet. In fact I don't think the markets on a macro scale have found their bottom just yet so it's best to wait. The worst case I'm wrong and everything goes back up and I loose my chance for an average down and we head back to the black...... big deal.
The reality is this company produces. It's small but it's not a spec play, it's producing and growing. You can bash Nutell all you want but he's not watching the macro pictures, he's dreaming of a sustainable price of oil to be $90 to $120. The last 2 years Oil has been very predictable and I suspect that Oil will copy last year's antics almost to a "T" which means another few bucks to go down.
Good luck ya'll!