OPEC and Non-OPEC countries agrees to supply reduction. Cut by about 1.8M totals starting gradually and in full swing by July 2017.
http://www.reuters.com/article/us-opec-meeting-idUSKBN13Z0J8
In another article on Reuters, Ross Kemp's I think... he commented that one of the main reasons the Saudis are agreeing to the price fixing is that they believe other suppliers are either not capable, or quickly running out of capability, to cheat the supply cut agreement. i.e. the wells in those other OPEC and non_OPEC parties to the deal are running dry and they have to fire up exploration and new construction to then cheat the supply agreement.
That alone is good for such provider as MRM. Much better for its operations in Asia and Australia as the operators here are not signatories to the deal - so the can pump as much as they like.
The tides are definitely turning in oil and its service providers favour.
Which bring us back to that cash flow delay and minor nudging over the coming 12 to 18 months from today for MRM. I'm betting that it will see this through with very minor dilution or none at all.
But again, I don't know the industry and MRM's operations on the ground nearly enough to be confident about the cash flows and its timing... management might not be a whole lot better since it's a business and all we can do sometime is hope we win some jobs and make some good well timed sales.
So should we risk buying now just to watch it halved when/if it raise that equity; Or risk not buying now and watch as Fortune smile upon the Mermaids and those tender and oil price move their way.
If we can predict this with certainty, we'd be on a yacht by some mansion somewhere exotic, like Sydney
But then as cigar-butt smoking goes, are there better opportunity out there for zero risk? Zero risk maybe, I couldn't see better and bigger potential gain with this limited downside.
And it's that minor risk that's holding me back from offloading other holdings to double down on MRM. Though I've put my not that insignificant cash into it couple weeks ago... might add the extra few bucks that's building soon.
