GREY:PEYTF - Post by User
Post by
TheJakeMooreon Jan 09, 2015 10:12am
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Post# 23301713
The last time this happened, it was the Depression.
The last time this happened, it was the Depression. This is the first time since the depression, that the price of oil. Trails the inflationary adjusted price of oil. Not only does it trail it, but it is lagging some 75% behind. Based on perpetiual inflation oil should be trading somewhere around $65-$75. So where are we headed? Ruin or prosperity? I think ruin.
The debt situation is really serious here and is what is holding the stock down (well other than oil obviously). However the floor will be in here soon. Keeping an eye on this one. Hard not to like the dividend and the pe ratio's at these levels. If this broke through these levels I would be shocked. It would take an "overall market crash" for that to happen I think.
Insert....Student Credit Bubble....Pray the student credit bubble doesnt burst with oil this low. It would be catastrophic. This stock would default in a heartbeat. There in lies the market risk that exists with this stock and why its only trading at 2x pe. If they can clean that situation up asap. They will make a bunch of longs a boat load of money from these levels. Decisions, decisions.
TheJakeMoore.