DLS 0.00% 69.0¢ drillsearch energy limited

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  1. 11,185 Posts.
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    Hi abctrader,

    I really can't say. Probably not fair or reasonable to DLS shareholders but I doubt that will be the conclusion of the expert reports. Others here are more informed about the specifics of the businesses of the two companies. I'm really only in DLS to try and take advantage of the recovery in the oil price which I believe is coming in 2016-17.

    It's all about oil at the moment. You've only got to look at markets (sp-500-slides-as-energy-shares-follow-oil-lower-20151202-gle1ej) and the emphasis that Yellen has been placing on it in her communications to the market about the timing of interest rate rises in the US.

    http://www.slate.com/blogs/business...t_yellen_faces_bizzarre_economic_dilemma.html

    I'm sure those central bankers in the Eccles building in New York will be very interested in the outcome of the OPEC meeting tonight as the success or failure of there rate rise timing strategy rides on what those Saudis will decide.

    In my opinion the Saudis will stick to "the market will find its own balance" line and this will guarantee the failure of the Fed's lift off strategy going forward as it exposes the ugly head of deflation and also exposes their vaux economic recovery for all that it is, a short little dance with the reserve currency of the world. Get a group of old grey haired men and put them in nightclub and give them a dance with the youngest most energetic and vivacious girl in the room. What they soon discover is that no matter how much they like that dance, it won't last for long as they begin to sweat and start struggling for breath. That's like the effect of the high US dollar. It comes back as a deflationary wave that ends the sweet dance.

    Great trade this oil trade will be if you have the confidence and conviction to believe in it.

    Eshmun
 
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