Sell
As I have said a few times over the past few months, it’s best to be out of Oil and the market in general and be sitting in a cash position or short if you have an agressive nature. Holding Ithaca is no different and anybody saying so in the past 4 months has been proven wrong. Too many have fallen in love with the stock, ignoring the fundamentals of the market and investing.
There is not going to be $130 (or $60) oil this year or probably next. We’ll be lucky to have a WTI average of $40 this year – 2016, and not significantly higher for Brent. I would do my fiscal planning based on $30 something oil this year, a much more conservative and realistic model that these other absurd upscale prices that are floating around.
The share price of Ithaca is just a pawn in a much larger game and for the most part, it will be dragged along like a piece of seaweed in the global ocean of currency trading, and politics.
So, if you haven’t already done so, sell now, suck up the losses and just wait for six months to re-evaluate.