Shell pulling the plug I don't want to appear to be wearing rose coloured glasses...but I see this as a good thing. Once again it supports the idea of companies scaling back on new projects and looking to consolidate and buy established projects. There are just so many things that make sense about Syndcrude scaling down the number of partners.
If you recall during the Annual Report it was made clear that COS had at least a year or so of wiggle room.
Short term...sure, COS could see 9; just a few weeks ago it saw 6 (and I darn near had heart failure). Sure...oil could go to 30, maybe less.
But someone astutuely noted that if it stays down here for much longer than 2015 there are bigger issues at play.
Nigeria calling an emergency meeting for OPEC. Agreed, they are a bit player, but 7 other bit players are drowning in their inflated budgets. These guys are pretty much one trick ponies (their only income comes from oil). The USA has it made as oil is not as big a part of GDP as other countries. Canada...not so lucky.
Holding long with a good chunk of my shares. But am taking advantage of these silly price swings. For example, bought a bunch this morning at 10.80 and put a sell order in at 11.20 before I headed out for the day. Was not expecting to see these shares sold by the time I got home. 2K profit while I wait for the rest of these shares to catch up to my average buy price of 15.
If I thought this stock was a dog I would have sold at 12 last week and take a 3 dollar loss per share. But I think there is value here. Of course, the shorts will differ and I truly hope you guys make some money on these swings.