GREY:CUDBF - Post by User
Comment by
CruelCanuckon Nov 28, 2014 11:57am
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Post# 23174109
RE:SITTING DUCKS
RE:SITTING DUCKS
Oil prices wont stay low for long.. OPEC is expected to soon be cutting production by 50% which means the remaining businesses that can sell oil at below 70 are very limited. In fact we know that this cheap oil cannot continue because even the saudis are losing money at these prices, they have about 4 years tops before its too late.
The key to this play is infrastructure and the fact that it has a min value in terms of assets and at least 650k incoming at 0.19.
If this drops IMO it will rise back up very quickly. I do not think its time to panic because by the time this is ready for production oil will probably be on its what back up anyways.
That being said, im definitely no expert, im just going by the facts and what KMDC are bound to.