OIL stocks
- Thread starter trader10
- Start date
I own Santos. I bought at the very start of the year. Whilst I don't regret buying it I wouldn't buy it now until I thought the oil price had bottomed. There's no clear indication that has happened yet. I may buy more if oil hits the $60.00 barrel mark and shows some major support at that level.
Caput Lupinum said:
I have... Friday... and will do it again shortly.... loving the prices.... shares issued are not massive.... plenty of market cap, projects and IMHO only, OIL prices will go back up to $100 in a near future... watch this stock rise quickly.....just like 2008...
SovereignBuyerMelbourne
Member
trader10 said:
Interested to know why do you think that?
finicky said:
Six successful wells delivered during November including two wet gas
discoveries
Oil Business:
- Four new development wells cased and suspended in PEL 91
Wet Gas Business:
- Varanus South-1 discovery in PEL 513 in the Western Cooper Wet Gas
project area, the first by the new joint venture with Santos
- Maupertuis-1 cased and suspended on a sole risk basis by Drillsearch as
a discovery in PEL 106
- Vanessa-1 production test begins in PEL 182
Unconventional Business:
- Fourth well in the ATP 940 drilling campaign spudded at Amidala-1
- Hydraulic stimulation campaign restarts at Anakin-1
When OIL prices go up, it should close that GAP..... IMHO
Compare it's chart to oil. Looks like a very high correlation, but Santos is more highly leveraged to oil price.finicky said:
This also makes sense from a fundamental point of view as its a high cost producer. So will be more leveraged to price IMHO.
(I'm using oil chart as proxy for gas)
SANTOS shares have plunged to a 10-year low after sliding oil prices meant it was unable to get favourable terms on a balance sheet-strengthening hybrid debt/equity raising.
The company's shares, which are off more than 30 per cent in the past two weeks because of its high leverage to oil prices, were down 75c, or 8.3 per cent this morning to $8.33, their lowest price since December 2004.
"The oil market has experienced considerable volatility following OPEC's announcement that it would maintain existing production levels," Santos said.
"In response to this marked change in market conditions, Santos (STO) has decided to defer any hybrid issuance until market conditions are more conducive to issuing such instruments."
Santos flagged the raising at a November 26 investor briefing, saying that it would test the market on a roadshow and revisit the raising next year if the investor appetite was lacking.
Today, the company said it had no "current intention" to undertake an equity raising, something some analysts have said it may need to do to keep its investment grade credit rating.
The company's shares, which are off more than 30 per cent in the past two weeks because of its high leverage to oil prices, were down 75c, or 8.3 per cent this morning to $8.33, their lowest price since December 2004.
"The oil market has experienced considerable volatility following OPEC's announcement that it would maintain existing production levels," Santos said.
"In response to this marked change in market conditions, Santos (STO) has decided to defer any hybrid issuance until market conditions are more conducive to issuing such instruments."
Santos flagged the raising at a November 26 investor briefing, saying that it would test the market on a roadshow and revisit the raising next year if the investor appetite was lacking.
Today, the company said it had no "current intention" to undertake an equity raising, something some analysts have said it may need to do to keep its investment grade credit rating.
SovereignBuyerMelbourne
Member
trader10 said:
Sorry I don't get what you mean.
trader10 said:
If that is your intentions then why not just buy oil and leverage it? Or alternatively buy a small oil producer with little to no debt like Senex?
Caput Lupinum said:
I expect news from Santos.... I expect oil to rebound..... I don't play CFD's ETF's anymore.... not until HFT's or the volatility stupidity are gone....
I have a set of rules for myself from 2008 until now:
- I only invest with "MY OWN" money
- I only invest money that I can lose it
- I don't believe in sophisticated investment tools anymore
- My goal is to preserve my core wealth and not speculate for the time being
Santos Ten Year Chart.
http://hfgapps.hubb.com/asxtools/Ch...&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M5
http://hfgapps.hubb.com/asxtools/Ch...&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M5
stocksinvalue puts fair value at $6.87, 18% lower than Friday's close. Rates Santos' 'financial health' as Poor, 'business risk' as moderate
Ratings and valuation might be a bit stale though, can change at any time, specially for a volatile commodity producer. Only add it because stocksinvalue has seen STO as significantly overvalued for some time and still does. Not the Bible of course.
Ratings and valuation might be a bit stale though, can change at any time, specially for a volatile commodity producer. Only add it because stocksinvalue has seen STO as significantly overvalued for some time and still does. Not the Bible of course.
finicky said:
opportunity gap? whatever gap it is I am liking it....
http://www.santos.com/library/2014InvestorSeminarFINAL_ASX.pdf
Time for outdoors
:lol: 
... have a good Sunday mate 