equities markets are futures markets - generally they try to...

equities markets are futures markets - generally they try to price in future earnings out to 9-12 months ahead.

thats why fmg rose 1.50-2.20 before iron ore started to recover etc, when any 'present state' assessment would have indicated they might get crushed by their debt

small cap stocks often dont get so much future pricing because they get less focus from sophistiated investors - but in a market with few oil specialist service companies - mrm will be the next rung down once people feel santos is well priced - and indeed some investors mistakenly think service companies are better investments because they have greater earnings stability than the commodity producers

i laugh and laugh when i hear that.

i also think mrm mgt are broadly seen as quite good and current predicament just the oil curve not BoD failure.

So if curve is rising these are the stocks that get back buy and holders fastest