The drive to cash in on the Aramco IPO is just starting. The Saudis value it at $1.25 tln to as much as $10 tln. This would be the largest IPO in market history dwarfing all others. To achieve this the Saudis want to push the oil price much higher over 2017/18 to sell 5% of Aramco for $100 bln four times the size of Alibaba. As a result Saudi is being courted by several investment banks led by Goldman, HSBC, JP Morgan etc and so far Saudi has paid out almost $100 mln in fees covering several other state assets also. We can expect all sorts of oil price positive reports as the banks push it upwards probably from Q3 2017, for their own agenda and a string of successful Saudi IPOs. This has not yet started but when it does the oil price could be likened to a run away train fuelled by several banks also. If that happens the only thing to slow it down will be US shale oil increasing production/sales so the oil price will be very interesting quite soon.
I guess you must have held at some point and that is your business, but an objective view is always appreciated as 'we' inside sometimes can't see the wood for the trees. I'm sure I will rue the day for not topping up at this price as I have for not buying Glencore at 90p. Yes, they are apples and oranges to compare each, but keeping cash and hold it seems to be the wise thing to do these days even with little return where it is stashed, but I still have it for another day to invest rather than chuck it all away to the MM's or P&D merchants. I know that I am not alone in my thought process as the market is not the same today as it was 5 yrs ago which is now controlled by bots the ordinary PI has no access to. Investing in AIM seems to be a non investment and the AIM is just to take your money and place it in someone else's pocket.
I'm confident it will hit 45 or even 50p by end of July. This share is seriously undervalued. After the OPEC meeting in July this will shoot above the cloud. I'm holding tight and adding more when I can.
Sampson...The share price rose 16% in one day on speculation that pmo would announce completion of its debt restructuring, but they didn't,so it fell. Investors are a fickle bunch ! Olliesky...Watch Rockhopper rise when pmo announce debt restructuring is completed in the coming weeks. This then releases the shackles to get a farm in for Sea Lion,when this is announced Rockhopper will rise to £1+, it's not Jackanory, just anticipating a sequence of events, before they actually happen,to accrue a capital gain.
Rookie1 no meeting planned yet but they will monitor it into March. Ramadan starts 25 May to 27 June so I assume any OPEC meeting will be late May or early July, probably the latter. Saudi Aramco has hinted it may cut another 500-800 bpd if some of the others don't play ball so we'll soon see what happens. As to RKH its unlikely to move until PMO sorts its finances out and also announces a Falklands programme starting with more Isobel drilling. Tuesday's move was based on nothing but PMO rumours and RKH investors need to beware of that until it actually happens. If/when it does 40/45p is possible then later a lot higher assuming they press on and Isobel comes good. Just thoughts !!
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