Geiche, I don't think either of those will work in the medium to long term....There is only one thing that will work...The continues disruption of the economies of Mexico, Venezuela,Iran,Saudi Arabia and the rest of the major producers to feel the pain...Remember, they have lost billions in revenue in 1998...They cannot, and I emphasize CANNOT sustain such losses in 1999...So they WILL have to resort to further cuts in the March meeting once oil demand remains where it is and oil prices are below $13.00...
The trick is had OPEC been a company, they would have cut production months ago, sufficient enough to push oil prices up to at least $15-16.00...But it comprises several countries, led by politicians, rulers, and such, who may be slower to act after the first hint of trouble...Over a year has gone by, billions have been lost...only now they would start thinking with economic sense.
Personally I have bought all I can buy in this sector, according to my rules...and so I am holding...I would have to be mentally insane to sell my OS stocks at these prices , even though I still have profit on a couple of them.
Those who are selling today are traders taking a loss and moving on,and mainly inexperienced investors...I am sure most who read this thread will and have held on to most of their holdings....I mean Geiche, haven't we been through this story on HAL before...Oh yes..and they still sell at 29.50 today...Oh well.
So HANG IN THERE, LIKE THE REST OF US.....YOU KNOW I ONLY GET BEARISH ON A SECTOR OR STOCK WHEN IT BECOMES OVERVALUED...THATS WHY I JUST CAN'T GET BEARISH ON OS STOCKS...I WILL STAY HERE AND HOLD UNTIL THE SECTOR MOVES UP TO A REASONBLE VALUATION, MAYBE osx higher than 70. |
