Member Info for AlfaMale

Budgie,

OK, so there was a sudden quick drop in PMO, but this rapid drop happened more or less in tandem with the drop in oil price.

What some here seem to be forgetting is that PMO is only profitable above, approx $55 oil. Whatever that magic number, debt only gets paid off with oil consistently above that price.

This gives us a window of $31 in oil price from $86 down to $55.

So a drop from $86 oil to $72 ($14) is around a 50% drop in profitability for PMO.

IMO it's not surprising the market has dropped PMO by 40%.

Drops are always overdone on this stock anyway, so that needs to be borne in mind.

Doesn't need conspiracy theories.

Oh dear indeed

2nd Oct - PMO = 143p, Brent = $86

6th Nov - PMO = 105p, Brent = $72

No correlation to oil price drop? The charts are IDENTICAL in pattern.

Like I said, wake up!!

"So why? 40% reduction in mcap in 7 trading days"

It has taken one month for PMO's share price to fall from the 140's to today's price - an identical time frame in which the oil price has fallen.

What planet are you on?!

"Not owing to the oil price."

Are you kidding me? lol

Brent has fallen from a high of $86 to the current $72

Wake up!

PMO open price tomorrow morning, anyone?

Trump speaks, oil tanks.

What a surprise!

Then again... Brent down $1.5 suddenly...??

No action today...

Thanks OU & Pleb.

Oiluser,

By drilling, I take it you mean on Zama?

Brent has just touched and bounced off its 200 DMA level. Will it hold?

PMO has dipped below its 200 DMA today, will it bounce back?.

Let's see how it plays out...

"a fall of almost 40% that our sp has had in a couple of weeks or so, now requires an almost 50% rise for us to recover the lost ground"

Huh??

If is stock is 100p and it falls 50%, it is then valued at 50p.

To get back to 100p it needs to rise by 100%!

Members - sort yer maffs out!

"so saying it might go lower is a complete waste of breath."

As are you comments directed at him! :)

WTI Crude has broken down through its 200 MA too. Brent not far off the same.

Members,

I saw there was estimated a 3m build in crude tonight.

It's all about the oil price.

Lots of talk currently of Iran's production not being affected by sanctions, and Saudi Barbaria saying they can pump another 1 or 2m extra barrels within a matter of months if needed, despite internal OPEC reports recently saying the group were struggling to increase output!

The push to $86 oil was mostly off the back of Iranian sanctions expected to remove 1m+ barrels from the market in early Nov. As that's looking less likely, things are cooling off. As usual, PMO affected more than most other oilers.

However, lots of conflicting information out there at the minute saying that the market is well supplied, yet demand is peaking over 100m barrels/day, coupled with talk of falling demand due to economic reasons.

Difficult to make any sense of it.

https://www.reuters.com/article/us-oil-prices-kemp/hedge-funds-quit-oil-as-rally-reverses-kemp-idUSKCN1MW1QQ

Might explain some of the recent weakness in crude.

"the target will then be turned to electricity charges"

Yes, and all the muppets that have signed up for Smart Meters will have given 'them' the ideal way to introduce time based tariffs just in time for when you need to start giving juice to your new electric vehicle...

Not to mention the loss of privacy and all the other issues that go with "Smart" Meters.

ROS,

Can't say I disagree with any of that, and I'll even concede that yours is (probably) bigger than mine! :)

There are so many factors at play here, it's important to (try to) look at them all, regardless of current positions. It's still a gamble either way as macro events can appear from nowhere at a moments notice. Knowing when to get back in, or when not to is all part of the fun (stress!).

Doing some DIY myself later, ripping down a lath and plaster (wattle and daub) ceiling. Deep joy.

Snippet from Twitter:

Iran’s oil exports averaged 2.2m barrels a day in the first two weeks of October, according to @TankerTrackers . That’s barely a 10 per cent drop from start of year. US has huge amount to do if @SecPompeo wants them down to ‘zero’ after Nov 4.