Originally Posted by
duncan macgregor
dSURF I think it has more to do with market sentiment than straight out revenues. If the market in general reverses the trend and trends up NZO will trend higher than most. If the market continues to trend down NZO will swim against the falling tide better than most. I think if the market crashes the money that NZO have in the bank would buy the company back with plenty left over.
1, market crashes oil $200 a barrel NZO SP will go much lower.
2,Market trends up oil $100 a barrel NZO sp will go much higher.
The market is an irrational force, that is driven by sometimes situations that should have nothing at all to do with anything.
Why on earth did the sp go so high, to drop back so low, in such a short time, other than greed and fear driving the sp. The greed and fear comes from the punters who borrow to buy more than they can afford, driving the share price to far in both directions. I study market sentiment and the likely causes that drive it, rather than get bogged down working out PE ratios which in the extreme market count for very little.
Last year it was nickel in a rising market. This year it is oil in a falling market making it much more difficult to predict. Macdunk