Agree it looks undervalued based on oil price movements.My...

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AnDy62

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01/04/24

10:45

Post #: 73133821
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Originally posted by Moonshine66: ↑

March has been a good month for energy stocks around most world markets. Clearly some rotation is going on here as the price of oil ticks upwards.

Unfortunately WDS operates in one of the most restrictively woke/green jurisdictions in the world. It is 5% or thereabouts above its mid March low but pretty well flat for the month. Still, I’m a lot more positive about WDS right now than I have been for some time.

Markets are due for a pullback - has to be a 4% or 5% pullback at some point in the next few months - a hundred years of market history/data says so. I like WDS in that scenario - I think it would hold up reasonably well.

In any case at $30.50 I think WDS is undervalued. Given the recent rise in Brent, $30.50 represents a lagging share price. A bit over 3 months ago (mid Dec) Brent dropped to $US75. At that point the WDS share price was almost exactly where it is now. Brent closed in overnight markets at $US87.48 so the price of Brent is up 15% since the mid Dec low - surely the sp has to adjust upwards from these levels (despite Albo’s ball and chain)

Not the time to lose patience with this stock - every chance of a post Easter surge.

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Agree it looks undervalued based on oil price movements.

My concern, and I'd appreciate other investors' thoughts, is the net zero push. Whether it's 2050 in the West or slightly longer in developing countries, what is LNG and WDS' longer term future? Or are we just looking at it as a buy for cashflows for the next 30 years e.g.

WDS Price at posting: $30.50 Sentiment: Buy Disclosure: Held
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0 Great analysis

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