RE:RE:Buy here?Your arguments are nonsense. The "bank" isn't gonna pull COS's "line of credit". Maybe that’s what happens to you when your shorts go the wrong way. As I mentioned I worked at Syncrude in the 90’s when oil was way below the cost of production for years. Syncrude is still here.
I see COS as a pure play on the price of oil. Really it ticks up and down as WTI ticks up and down. If you watch the ticks of the real time oil chart that’s what it does. I agree COS is losing money here though it's the first time in years that has been the case.
The way I see it lower the price goes the less risk there is in buying and the more risk in selling. When oil bounces so will COS - probably dramatically. So if you are willing to watch COS tick by tick and hoping to pick THE bottom go ahead. Think about it does it make more sense to buy COS at $100 oil or more sense when it oil is $40? I think you will make more money at $40.
These oil prices are HURTING a lot of producers and don't think they don't notice it. When oil was a $100 US everybody could be lazy and high cost projects were approved. That will be off the table now until we see oil at $100 for another 5 years. New oil will come from Iraq and Iran though there has to be 4 million new barrels a day brought on each year to keep oil at a steady state due to decay. Do you think the producers haven’t figured out you can make more money by actually working less hard? The Saudis are pumping almost a million barrels a day more now than when oil was at $100. How long will that madness continue? Are the Russians gonna continue ahead with high cost projects? Oil Sands investment will be seriously cut back. They make less than half as much money by pumping more.
Very true oil might go below $40. Still $40 now, when inflation is figured in, is already lower than 2008. Also one thing that would make question where the price of oil is going is that everybody knows it’s going down, including the media. Just like a year ago everybody knew the price would be $100 forever. To totally dismiss oil as have no value and not recognize that $40 is pretty low could be a mistake. If you take the long term view and see a purchase of COS as a long term investment. Then $6 is probably OK.