OTCPK:ICPVF - Post by User
Comment by
blade86caon Jul 28, 2017 2:12pm
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Post# 26522751
RE:RE:Why are pipeline stocks down?
RE:RE:Why are pipeline stocks down?when2buy
I agree with all our noted points but you failed to mention one more fact
Typically when the Fed raises interest rates that is on the premise that either there is inflation in the economy or there will be inflation in the future. Typically when there is inflation the price of goods rises due to higher demand ( oil included ) and when the price rises typically more companies will find drilling for oil more economical and will want to move more oil to markets.
FYI the US Fed just proved themselves scared by keeping rates steady and using verbage like "relatively soon"
There will be more use of pipelines due to higher flows so that should translate to higher revenue as well as higher returns for investors in future. They will be able to raise their dividends in future and be competive against the returns for Gouvernment Bonds