WISR Ltd V.WZR

Noooo!

[FreddW]

The news about the sale was a major disappointment. Someone here said "robbery" and I totally agree. The stock is ridiculously undervalued. This is partly because of Isis. But Isis is not a threat and never was. They have only been able to take territory where they have some local support. Now they are being pushed back on all fronts anyway. With Maliki removed from power it politically actually looks better now for WZR than a few years ago when it was valued over a dollar.  I would say that Isis actually has been good for Kurdistan politically as they have got better cooperation with western countries and it has weakend the Iraqi government.

What about  the oilprice? Lets have a look at the latest Opec monthly report:
https://www.opec.org/opec_web/static_files_project/media/downloads/publications/OPEC%20MOMR%20May%202017.pdf
On page 72 we can see that OECD commercial stocks have been declining since July 2016. In March they dropped by 36 mb. At that pace we will be back to normal stock levels in August. But on page 29 we can see that oil demand is expected to increase by 2 mb/d from q2 to q3. So we could see stocks declining at a rapid pace from q3 and onwards. This of course will have a possitive impact on oil price and investments in oil projects. But what about the Opec production cut which will only last until June? Looking at page 54 we can see that Opec oil production dropped by about 1,2 mb barrels from q4 to q1 which is less than the oil demand growth of 2 mb/d. Also now it seems like the production cut will continue:
https://www.bloomberg.com/news/articles/2017-05-08/russia-backs-saudi-proposal-to-extend-opec-oil-cuts-beyond-2017

So to summarize. Now is not the time to sell oil companies, now is the time to buy them. That is also what Crest seems to have realized.