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United States Oil Fund LP V.USO.RT


Primary Symbol: USO

The investment seeks the daily changes in percentage terms of its shares per share NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the price of a specified short-term futures contract on light, sweet crude oil called the Benchmark Oil Futures Contract, plus interest earned on USOs collateral holdings, less USOs expenses. USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.


ARCA:USO - Post by User

Comment by RayTeeon Oct 27, 2016 10:35am
171 Views
Post# 25392232

RE:This company in the near future!!!!! con't.

RE:This company in the near future!!!!! con't. To some extent I agree.

There are some Warrants outstanding, and those I think will be exercised for some of the funds.  I actually think they will secure a line of credit (rather than issue new shares)

The conditions in the last dilution made it more difficult for them to issue new shares, so I think a line of credit is the most likely scenario.

As for the production timeline, I think you are in the ballpark.  2-3 months to ramp up to full production is fairly typical of this type of operation.  Very similar to a mining operation.

In many respects,  that's what this is.   

I think given the number of shares a consolodation of 34.125 to 1 would leave aproximately 50 million shares outstanding.  This is a reasonable number that would still leave liquidity.   They may go with a 22.5:1 consolodation leaving a little over 75 million shares outstanding.   I dont see them going much lower than this in terms of the consolodation ratio.   I am pretty sure they want less than 100 million shares.
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