Douglas, Women's Roller Hockey? Now there's a scary thought! Who-aaa! I have utterly no illusions about the price of oil affecting the price movement of FLC or PDE for that matter. Moreover, it is important to note that "the price of OIL stupid" has recently been severely marked up from about 10.35 to 17.04. I believe Slider would call this the "snap back" effect. Tremendous amounts of oil production in both the US and Canada have been curtailed. OPEC has recently announced further substantial cuts. Non OPEC producers have joined them. I would also note that the US economy (the worlds largest) has gone into very high gear during this period, and shows NO SIGNS OF SLOWING DOWN. This has coincided with substantial upward revisions of Asian economic growth. Additionally, the worst now seems to be over with the major players in emerging Latin markets. Just today, Europe opened the money spigots YET AGAIN! As I am sure you are aware, Central Bankers ALWAYS over do it when jump starting economies out of recession. These are all powerfull economic vectors of force converging simultaneously on one small sweet spot - "The price of oil stupid". They have already had a telling effect. But what is most extraordinary about this process unfolding before our eyes is that we are only in it's BEGINNING phase. The curtain has just fallen on act 1 of this 3 act play. I am therefore not all that worried about oil prices stabilizing at higher levels.
A while back you made a most poignant and striking observation. This observation was little noted and less remarked upon by the thread. But it perked the Bulls ears up SHARPLY! The observation was none other than that "the price of oil stupid" CLOSELY CORRELATES with "the GDP numbers stupid". I had long suspected this, and when I heard it from you, it became Gospel. Since Sheik Yamani, the US DOE, Sheik Al Sabah, and many others, who are in a position to know, are now predicting $18 to $20 a barrel oil, by years end, I rest fairly easily knowing that I own several companies that are HIGHLY LEVERAGED to "the price of oil stupid." In fact, I court them. Most of these companies need only survive for one more quarter, and maybe not even that, before their leverage will pay off handsomely.
Now, wrt FLC dominating the deepwater drilling industry; that sounds so nice I think I'll say it twice!
FLC will dominate the deepwater drilling industry! |
