The Possible Effects of Middle East Tension on ARD Shares

Expect volatility in ARD shares due to events transpiring in the Middle East with Israel and bordering Lebanon. Tensions could quickly escalate causing Syria and Iran to be brought into the war-zone. While this would certainly cause oil prices to rise it could also cause the markets to PANIC and cause UNCERTAINTY. In other words, even with rising oil prices Mr. Market could declare, "The Sky is Falling." This would set off program and hedge fund selling causing even E&P companies like ARD to sell off potentially. If history is any guide we know for a fact that Mr. Market is not always rational. He certainly isn't efficient either (Just look back to when Mr.Market valued GEOI and GMXR more than ARD. Or look at how high the valuations are on the airline sector: LCC, UAUA, AMR, etc.)

Anyway, the point is that if the market is often times irrational and inefficient then we shouldn't bet the farm that a surge in oil prices would guarantee higher share price of a superior E&P like ARD.

In conclusion, don't over extend yourself on margin to buy ARD shares. They are golden. However you don't want the hedge funds to box you in and cause a margin call that would force you to sell your shares in the cheap. Just remember:
1. Expect Volatility
2. ARD shares are GOLDEN.
3. Don't over extend yourself on margin.