Slump in oil price hits WOR, page-107

This st is getting hammered today not on POO or LNG sentiment it is because of this piece of journalism.

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=A5A304E5-D19F-99D6-DEA837DBF3AEE72F

DB downgrade to sell drops price est from $9.55 to $3.09
GS drops price 36%

If you were going to get out of this sector it was 12 months ago.

This broker valuations make for a good laugh but that is about it. About 18 months ago the had a buy and price of $21.

You shouldn't drive by looking in the rear vision mirror. POO has gone from c $100 pb to now $30 pb, which means producers have lost margin of $70 USD pb. Dropping from $30 to $27 although 10% equates to $3 pb.

Investment decisions are made on free cashflow. Its closer to the bottom than the top. So the long term trend is up, so to come out now and drop a sell rating, to me sounds like you are position yourself for the future and looking to get in.

As Buffet espouses buy when others sell, what better way to facilitate this then by slapping a downgrade to buy.