oil is playing out its own game now. a lot of people consider that the oil price is being pushed around by speculators etc. The market is having a hard time believing the current oil price and has discounted [or not bought] the emerging oil companies yet. we saw all this happen with iron stocks only to see a new higher price set yet again. the market is fixated on the short term worries of the US and might be ignoring the bigger picture relating to the supply and demand of crude. oil is one of the few commodities that totally disappears once you burn it. we can recycle just about everything else. the global demand is strong and little new fields are coming online or even being found. the trend is upwards and onwards for oil and the large discounts of these companies will go in time as people see them as cash pigs. i expect more mergers and deals to be done in this space. it was not long ago that small cap iron ore companies now can make more than their previous market caps in profit pa. oilex was capped at about $70m not long ago and when they hit decent production numbers over the next year or so, they to can make their market cap pa as well imo. what will we be paying for oil in the next few years????? the mining companies are using oil, its a major cost for them so they are getting squezzed on all fronts. oilex's costs become containable given they dont have the real actual imput cost and are a producer of what everyone else wants. remember the old saying when the gold mining rush's were on? 'dont become a miner, supply the shovels instead and sell one to everyone. oil is the shovel to everyone else's business and oilex is well placed imo. the energy space is always going to be the place to be, it has been with coal and oil for the last several years and nothing looks to be able to change that into the future. i don't mind if oil pull's back a little from time to time, but companies like this will simply print money when the production starts coming online soon and keeps ramping up. dyor.
OEX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
