Quote:
Originally Posted by heartbrand
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here's a free stock tip, buy some shares of SDLP
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I'm not sure about recommending an offshore based operation w/o including an exit strategy when the ME oil producers (Saudis) have said they are looking to purge the market of marginal producers. Saudis are looking at $17 upstream to get crude out of the ground, offshore in the US starts at $50+ (I'm to lazy to look up where SDLP has it's rigs or to whom they sell to). Those numbers are finding and lifting, lifting can be close to the same for ME v. US offshore ($11ish), but that will only account for initial rise as rigs spin up back into production after the ME purge of marginal producers. I guess if you were looking at a strategy of selling after/during the time rig counts start to rise (which will raise stock prices of companies like SDLP) it's a good strategy, but again no exit strategy was mentioned. I agree with playing the Saudi oil war/purge to make some money in equities, but it's going to be short lived and I'd definitely have an exit strategy.