Thursday, May 14, 2015

Has Oil Really Bottomed Out?

Tiho from ASSOL (with his 2nd resource from Frank Holmes) has made a pretty compelling argument FOR the bottoming of oil:



Now, I know that I was hoping for a May low, and even though all the stars are not aligned perfectly, I do concede that it is very possible that Oil did make it's low back then.

Could I be wrong about oil? This is actually a mitigating factor which I thought about when I decided to enter into SembCorp Ind. However, I also accidentally glossed over a very very important detail which I had known since late last year, but forgot to take into account now. SCI has not been buying back their stock recently! They were quite aggressively defending their share price late last year and early this year, but it seems like they have yet to step in again. If share prices continue going down, I will remember to watch out for buybacks as that might help form a price floor.

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