RE: Small traders26 Oct 2022 16:23
I don’t like shorting shares and potentially destroying businesses and jobs.
Much rather buy new tranches lower down. Wait till it doubles and take out my original and run with free shares.
That way when you get blindsided as we have this past 6 months - it doesn’t hurt as much.
Although o&g prices have dropped over the past few months I am convinced that 2023 is going to be a disaster for Europe. With the US reserves running down significantly in a bid to control prices ahead of the midterms, Biden is playing a risky game.
When prices start rising in the next few weeks and he comes under pressure, the generosity of bailing Europe out this season will come to an end. The US will ban exports of LNG and the UK will be ever more reliant on the North Sea and fracking.
My main holdings in the sector are Kist, Sqz and IOG. All 3 for different micro reasons but the same macro reason - supply shortages and large cash dividends accruing into 2024.
Iog hopefully gets it act together whilst prices have dropped and gets cash flow accumulating soon enough