Crazy day againThis is unbelievable but let us review a few things:
1. The oil is still there and the reserve will only grow. Investors expected a better reserve report.
2. Oil is in a down draft and many oil and gas stocks have hit incredible lows.
3. The global economy is not as healthy as thought and hence the across the board selling.
4. CGT is not great but it has been used as a excuse to sell
With respect to the CGT, there was always a tax in the form of a withholding tax and no deductions allowed. With the CGT, sure it is higher, but there are numerous deductions allowed which makes the net effect less than I think many understand. This has already been analysed here with a 8% to 10% increase in the tax.
Currently, the company continues to look for oil.
In the end not much as changed other than the expectations of investors.
I think longs and the company got sideswiped by shorters and now it is a longer and harder road up. I do not believe that institutions are selling at this point. Why would they, there is still so much acreage to drill. A company will not be detered from buying them out if there is oil.
Just all my opinion. Frustrated beyond belief but this is my assessment an I am holding strong and will add if there is another drop. Oil is there and the search for oil will continue. That is why I bought. Can't change the sentiment in oil right now and can't change the market sentiment.