Jack wrote:It sounds as if Third Point is merely trying to maximize shareholder value. Why should they not do that?
FoxV wrote:This may all work out with Shareholders getting a nice sack of cash (for their dissolved stocks) but what are the odds of the disputed oil field increasing production after it has been taken over by a bargain hunter (who is buying the field after oil has dropped by 25% and is trending lower)
mmasters wrote:I'd say have your money where the action is when the big PO related events come, ride the wealth transfers and cash out.
Johnston wrote:Firstly, I know nothing about investing... so forgive me if this is a stupid question.
Presumably, if oil starts getting scarce, the price will rise dramatically. It is said that a 5% shortfall between supply and demand could result in a 400% price increase.
So if you invest alot of money in oil before that happens, won't you do extremely well out of the situation? In effect hedging yourself against price increases?
Surely anyone who believes in imminent PO would have alot of money in oil futures?
scienceteacher wrote:I'm shocked that nobody has mentioned USO the oil ETF that tracks the price of West texas Intermediate.
Trader's Corner 2007As for the price of crude this means sloppy, sloppy trading. The wide contango mean that longs are paying away anywhere from $1 to $2.5 per barrel per month to stay long. At the same time as the wide contango is paying physical oil players to store oil. And the market timers can afford to wait. They can get back into the game in Q3'07 if they need to. There is no reason to be strategically long now if you see low, slow growth going forward. The cost of carry $12-18-24 per year means that $60 oil is not that attractive. A price of $72-78-84 is breakeven. That contango actually works in the shorts favor. They can buy OTM options as insurance just in case.
Eli wrote:Well I don't think scapegoat is the right term when it comes to hedge funds. A scapegoat is someone that is wrongly accused.
The Hedgefunds in no small part will be a big part of the collapse. I wouldn't call them scapegoats, I think it is more accurate to call them greedy lying thieving bastards.
Hedge funds and the global elites are the same thing, this is their last get rich quick scheme before they decided to pull the plug and go for all the power not just the money.
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