All good Pbnewby.
Firstly, please ignore the post above, for reasons beyond me, it has merged with another post I did on a gold stock a long time ago (I think the error has occurred when HC moved to the new format).
Regarding the oilers, in particular, DLS, simply, its the best of the bunch, $170 million in cash, production costs of under $50 per barrel and heaps of exploration, with short, medium and long term projects on the go.
As for the international oil market right now. No doubt there is some serious price warring going on, but luckily for the Cooper stocks, we sell the good oil, the Saudis produce the heavy crap. Which, the U.S is the biggest refiner of. Hence why the Saudi's are attacking the U.S oil prices. They want the shale boom to die, and die quickly. I think they will succeed to some extent, but as for how long they can really reduce their own income, time will tell. Asia is still growing, so will continue to buy oil from Australia and everywhere else.
The world is pretty complicated right now, with the U.S dollar moving higher, its hurting international exports. This will be short lived IMHO, as the whole reason the U.S dollar is going higher is because its seen as a safe haven. Well.... I think its about as safe as parachuting without the chute.
The other advantage that DLS has is the Aussie dollar is going lower, and will keep going lower so its a natural hedge to the U.S rise. The last big fall in the oil price was very short lived. I think this will not be much different, especially when the U.S, Europe, China and Japan start to print again (in reality Japan and Europe already are) then natural resources will have a huge move higher. The flow of money around the world is speeding up all the time. Hence everything is more sharp, and painful (or profitable).
As for gold. Well, I must admit, I have reduced my holdings in quite a few goldies, as I somewhat luckily decided that gold had to fall due to the money printing in the U.S being turned off. I actually don't think that the actual turning off has made any difference, but perception is everything right now. I hold physical gold and will be buying goldies when I can, now that they are all on life support. Pick the right ones, and real money will be made, just like at the start of 2004 etc.
Hmm. This has gone on too long. But hopefully you found my thoughts interesting, Please no-one take my views as advice!
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