big day for oil stocks
Hardman holding up well in a overall positive oil sector. Looking the get back in at the mid 90s but the quick dip is not happening at the moment. A count of volume of trade over the last four to five months totals to more than 400m shares traded. This suggests a wholesale change in shareholdings (non-woodside), so the holders who wanted to get out already have. This makes the recent highs defendable. Also big buying appeared to have surfaced since Tiof West which would still probably be all retail, so action could really hot up once institutions get on board. This may happen after Chinguetti Commerciality decision (?).
A further thing to note is that HDR tend to drift downward in between drilling programs - it's happened in the last two years; will be interesting if this year proves to be the same in 04. If it happens, will be a very good time to accumulate.
Crude oil and gas prices are touching nine months highs yesterday due to cold weather forecasts in the US. Coupled with declining inventory and declining oil and gas production in the US (as well as the rest of the world ex-OPEC), this is as good a time as any to get overweight in oil sector stocks.
Woodside and OSH are having big days. WPL has gone gangbusters over the last couple of months and if it can clear 1530 today, we are looking at retest of prior year highs. OSH is also clearing the cobwebs for a big run to 150-160 in the next few months.
HDR
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