I know Westcoast - I can see why my oil and iron stocks are...

I know Westcoast - I can see why my oil and iron stocks are being punished, hence I panic sold out of them at big loses weeks ago. But MRM's price action just does not compute with me. I understand that a reduction in expenditure from the oil companies will hit our bottom line, but not to the extent the market is punishing the stock.

$1.60-1.80 is where this stock should sit with all the negative sentiment. We arent selling oil hence we arent losing money when the oil price goes down, oil companies still have contracts in place and hopefully will have a long term view with oil prices. Reduced work and more competition between the service providers will push our profit down, but for the share price to be at 1.20, mrm's eps has to reduce by 60% (back of envelope calc), not the 10-20% that I see as reasonable. Management have already stated that it was their plan to move to support production rather than exploration and hence the move to more specialised vessels.

I'm feeling for the resources sector right now