A multitude of factors working against WDS right now.
The low price of Brent China’s economy just not showing any signs of recovery Some major investments by WDS the market has a question over Ever present uncertainty the current Labor/Green government creates Sept/Oct traditionally a sketchy time on the markets Relative calm in the Middle East Broker downgrades
WDS simply a cyclical stock in a down cycle.
It’s hard to watch the sp getting down to these levels however there are a few factors that I think provide a floor and keep me invested.
-The much maligned WDS hedging provides a safety net at these levels
-The Saudis (though not as influential as they once were) start pulling their levers once Brent gets much below current levels.
- Stimulus related announcements out of China could release the 'China handbrake' and fire resources stocks anytime
- Flare ups in the Middle East could fire oil stocks anytime
- The current federal government might only have 6 months left in power
So just as everything is misaligned right now, it wouldn’t take much for a few things to swing back in favour of Brent/WDS and the sp would turn rapidly.
WDS is a cyclical stock - look at its 10 year chart - in terms of returns ask yourself whether it’s been best to buy when it’s $35 and rising or when it’s $25 and falling ?
Let the traders dump the stock. If you have anything other than a very short term view on WDS you’d be crazy to join this recent rush for the exits.
WDS Price at posting:
$24.25 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)