RE: Advice for an Amateur18 Nov 2022 12:50
I hear you John I understand your view of this company but you and older investors that have been taken through the mill are being played.. I will explain why, the fundamental aspect of things is oil super cycle… we are in it, oil recovered massively last year now it will have a pull back CEG is producing oil they are making money off it, they have sorted the debt out which will help in the deflation period we are about to enter, they do have Uruguay as a farm out possibility, majors are being told they have to invest in order to avoid windfall taxes governments are leaning on them now, they are cash rich currently they will invest into smaller companies during a deflation period, they always focus on production and investing during deflation as cash is worth more and materials are overheads are cheaper so they can cash in during a high inflationary period.
So the farm out is very likely, doesn’t mean they find oil but the hype alone is what will raise SP price yes it’s naive yes it’s hype but that’s how money is made knowing when to get out is the task before the bubble pops..
now micktrick answer honestly when oil prices fall what do you do as a retail investor?? Your first thought is oil prices drop this stock will drop too, am I right. Professional traders and institutions use this time to buy up the stock which confuses retail investors, price explodes higher you have a bull market the goal is to get your money from your account to theirs always have that in your mind,
Then oil prices start to climb again pros and institutional money start to sell because retail become bullish price has climbed and now oil is going up this company will do great and greed sets in and hype good news they never think it will stop going up and buy not realising they are being dumped on in each dip bad news reports etc to cover the fact but that’s what’s happening. Dips keep dipping and then complacency sets in stock tanks and fear panic etc. cycle begins over again.
Neither of you have to believe what I say but here is a couple of markers to watch out for!
A suddenly deflation event, something in the news it will affect commodity’s the dollar will strengthen on it push commodity even lower. Vix will jump over 40-50 … I think oil will go right down to $40 range, sharp and sudden. This will be where money starts being invested into small caps and going into stocks like CEG after around two weeks it takes for traders to reposition themselves so you have time to act.
Then good news will come out big jump up in SP on CEG, now this I reckon will happen between now and march, March is a troubling month I think the deflation event is anytime now give a week or two…
I personally would take profits before march at this point and watch the stock I could be wrong but I think a sharp decline will occur in CEG stock at this point could be on a news event. When oil prices begin to climb again that’s the que for pros to dump.