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13:43
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Originally posted by desertredlion:
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This is an investment decision that doesn't keep me awake at night worrying. WPL is a low cost producer, with a strong balance sheet, good assets, strong management, and relatively low debt. It can make a profit with oil at $40 per barrel and I expect will pay 3-4% dividend even if conditions are challenging.supply to be as big a factor in three to five years as demand..Middle East conflict or terrorist attack in an oil-producing country, and it's highly likely the newspapers will be full of stories of unhappy motorists paying $1.80 per litre for petrol. However, every time you go to your local petrol station to fill up, you'll be the only person standing in line with a smile on your face -- knowing your WPL shares are now at $35-$40. Worst case scenario, with a subdued recovery, I think it's at $30. Either way, at some point oil will hit $60 within five years and as a high tide raises all ships, each extra dollar per barrel equals pure bottom line profit; WPL gets to $30. I just can't see WPL languishing at $20 per share (or lower) indefinitely. Oil prices rise and so does the share prices of the energy sector. Commentators will be on TV smart-after-the-fact, saying how inevitable it all was back in August 2020 and how 'lucky' investors who bought then had doubled their money.
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Couldn’t agree more - WPL has been bumping along in the low $20’s since April now.....strong support whenever it threatens to break $20 on the downside. Along with the travel and leisure stocks it’s just a waiting game now. WPL will inevitably trade at $30 plus again so I think it’s a very good bet at current prices ....$30 might be 2 years away but that’s still a 2 year return that’s hard to beat.
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