Brent is heading towards 90USD if right and Saudi needs it around 100USD per barrel to cover the budget... brent will be approx 100USD after June OPEC meeting and extension of cuts till EOY. A lot of if's... but keep an eye.
Finally; someone might ask why would I then buy the stock now? Well, you buy as you know its undervalued you get that safety as premium that at certain point at future date it will be worth more merely when market adjusts for its value... you are not buying another overbought blue chip, you should not care about 10% up/down swings as you do not hold it gor short term. You buy to invest... and this stock has all of its fundementals in line right now to make you sleep sound for the next few years... if you are cash strapped this one might not be for you, premium of buying Tullow at 30p is knowing you bought it as undervalued, problem is it might take longer than one wishes...
Which mostly will be in 3y time; soonest 2025/26... adjust for opportunity cost, they cant come in now when defense and tech sectors are over delivering, but there are stock gains here as well, balamce these and you will get the timing of upward movement right... ofc if all holds constant which in this business never does... but with oil at 86; cashflow looks promising, debt under control and dividends on horizon... big money taking it out of penny stock category might arrive, again within 3 years....
Moreover, as scotpak mentioned weight was also on bonds and equity not adjusting... think from opposite side, hedgers and shorters... its not hard to move this stock up or down on any kind of news 10%... problem is sustainable movement in one direction which will only be achieved once we can attract big boys money - in other words: Dividends.
You place too much importance on a small investors... that do not move the price... BofA placed this report to all of its investors, and every broker worth its buck shared it immediately... big boys jumped in, followed by a small fish... (many of who did not even know why they are buying, but just saw 10% daily jump)... hence again with low liquidity big boys control this penny stock, did you look up inst. ownership?
What I don't get is; I have reports BoA upgraded from underperforming to BUY which is drastic jump, but I am not sure that this is upgrade; rather new rating as I don't see change of ratings for underperforming category... not sure if this makes sense... the reason why I am saying is because upgrade from Undeperfome to BUY would make sense to skyrocket the price more than new rating... might seem irrelevant to many tho...
I also expect them to follow it would be interesting to see where this ends we had Barclays historically approx target high, 19 days ago she gave it 55p, JPM 5 months agp 60... we need Jeff. Amd Stifel to amend ratings and then its all green...
As an investor - you want it low to buy as much as possible as in less than 3 years it will bear strong dividend on top of stock price correction. This type of stock vs e.g. NVIDIA is undervalued... there is no danger of carpet being pulled under you long term. Now short term, being a penny stock in the most volatile market (oil & gas) it will flactuate... unless you are underfunded daytrader (you should now be in volatile market) or an investor who is after some quick pump and dumb: YOU SHOULD NOW WORRY about low prices, as these are opportunity.
My Opinion: Strong Buy
My Narative: Good and undervalued stock
My style: satiric
And somehow you find my story negative? And me a short trader... damn, you are right, I should've never opened account on this forum ever... a lot of tarot reading, vodoo magic believers around here... makes me think... btw as a disclaimer I am not a trader, know your difference, I am not long, I am an investor, I am here for the not only long ride, I am here to OWN.
My Opinion: Strong Buy
My Narative: Good and undervalued stock
My style: satiric
And somehow you find my story negative? And me a short trader... damn, you are right, I should've never opened account on this forum ever... a lot of tarot reading, vodoo magic believers around here... makes me think... btw as a disclaimer I am not a trader, know your difference, I am not long, I am an investor, I am long for the not only ling ride, I am here to OWN.