Much depends on the price of oil, and how the hedging plays out. Noone can guarantee a profit. An oil company I'm in has made a "trading profit" from pumping oil, of $80mil or so, but the "net profit" is a loss of $200 mill. The difference is an accounting charge relating to the treatment of the hedging positions. This accounting charge will be reversed when the oil price drops, or when they sell the oil on which the hedge is based.
Seems nonsense to me. VBA will continue to perform well, particularly if QAN continues to struggle.
I agree VBA is unlikely to rocket in the short term, but if you can hold for 6 months, I do believe it will pay off. I'm looking to exit at 80c within 6 months.
Cheers,
BB
VBA Price at posting:
35.1¢ Sentiment: LT Buy Disclosure: Held
