'eventually oil will rise'. What a silly thesis to an investment...

'eventually oil will rise'. What a silly thesis to an investment strategy.

Investing is looking for sustainable growth and profits. Timing is a big factor in each investment, and ignoring the timing element of an investment, especially in a cyclical industry is absurd.

STO has burned far more portfolios over the last 3 years, than it has helped. Over the last 3 months it has rallied from a very low base, and now investors need to weigh up the risk/reward based on current valuations.

If you are going to invest for the long term, then you want to invest in a sustainable business with solid management, who have shown fiscal discipline through all times of the cycle. STO certainly does not fit that profile, so perhaps it is not the right stock for all investors.

Now that the rally has brought gains (a rising tide lifts all boats), it might be prudent to look at the risk/reward profile of the energy stocks, and decide if STO is the right stock considering valuations and diversification of products.

IF oil falls again, then STO will be hit harder than most - due to lack of balance sheet strength and history of poor financial discipline. I am not saying oil will fall (but I think it will), but investing is different than gambling, and ignoring the fundamentals of a stock makes it gambling and wishful thinking, more than investing.

As for your previous comment about others benefiting from your research - thank you for the morning laugh. I truly found that hilarious...

I have changed my sentiment on the stock to 'sell' based on current valuation, risks of management inefficiencies continuing, and the lack of momentum from this stalled rally. I may even short this if the 'borrow' is not too expensive. Will check that out...