ARD Shares Capitulate on Fear
Arena Resources and the Shareholders are Presented with Opportunity
Yesterday ARD shares closed significantly lower based on fears of Iran cooperation with the west and lower oil prices in the future. From a macro standpoint of oil one should disconnect from the market fears based on the fact that the fundamentals for rising oil prices longterm are in place. Read the books, "Twilight in the Desert" and "A Thousand Barrels a Second" for more guidance on this topic.
Based on a company perspective there is no better oil investment on any exchange that has stronger fundamentals and growth prospects in terms of oil production, revenues, net income and EPS than Arena Resources, Inc. In terms of growth ARD will eclipse the competition and continue to impress. ARD also has the luxury of over 86% in oil production and 82% proved reserves oil. The point is that even if ARD realizes $57 oil per BOE this is significantly higher than those oil and gas companies with a majority of their production in NG. A BOE of NG is currently worth less than $36 based on $6 per Mcfe (6Mcfe = 1 BOE.)
One should not be at all concerned about the recent drop in oil prices. The longterm worldwide supply demand issues remain in place. This fact must be underscored. The decline in ARD share price is an excellent opportunity for those looking to initiate a position or expand their position in ARD shares. Share ownership means you have an ownership in the business. The drop in share price is a good thing in this context. The more irrational Mr. Market the greater the potential profits that can be realized. Mr. Market is currently manic depressive. The current price is very attractive. The lower the price the more attractive the shares become.
The other attractive feature of the current oil selloff is the fact that ARD has enhanced opportunities to make an acquisition at a price that is reasonable. The bargaining power is with the buyer instead of the seller in times like this.
In conclusion, investors in ARD need to view the decline in oil as a positive. The more irrational Mr.Market the greater the potential for reward for both Arena Resources and the shareholders.
Arena Resources and the Shareholders are Presented with Opportunity
Yesterday ARD shares closed significantly lower based on fears of Iran cooperation with the west and lower oil prices in the future. From a macro standpoint of oil one should disconnect from the market fears based on the fact that the fundamentals for rising oil prices longterm are in place. Read the books, "Twilight in the Desert" and "A Thousand Barrels a Second" for more guidance on this topic.
Based on a company perspective there is no better oil investment on any exchange that has stronger fundamentals and growth prospects in terms of oil production, revenues, net income and EPS than Arena Resources, Inc. In terms of growth ARD will eclipse the competition and continue to impress. ARD also has the luxury of over 86% in oil production and 82% proved reserves oil. The point is that even if ARD realizes $57 oil per BOE this is significantly higher than those oil and gas companies with a majority of their production in NG. A BOE of NG is currently worth less than $36 based on $6 per Mcfe (6Mcfe = 1 BOE.)
One should not be at all concerned about the recent drop in oil prices. The longterm worldwide supply demand issues remain in place. This fact must be underscored. The decline in ARD share price is an excellent opportunity for those looking to initiate a position or expand their position in ARD shares. Share ownership means you have an ownership in the business. The drop in share price is a good thing in this context. The more irrational Mr. Market the greater the potential profits that can be realized. Mr. Market is currently manic depressive. The current price is very attractive. The lower the price the more attractive the shares become.
The other attractive feature of the current oil selloff is the fact that ARD has enhanced opportunities to make an acquisition at a price that is reasonable. The bargaining power is with the buyer instead of the seller in times like this.
In conclusion, investors in ARD need to view the decline in oil as a positive. The more irrational Mr.Market the greater the potential for reward for both Arena Resources and the shareholders.
posted by -Aztec- at 5:08 PM
<< Home