Operating costs are only ~$20...which means oil prices need to fall a lot further to close down tar sand operations already in production.
It will only affect the growth of new projects coming online...ie wont affect current production.
Some could shut down, if they are forced into bankruptcy from committing to projects at high oil prices and then having them tumbling down..but really, its best for them to continue as banks would get less from operations shutting down. I doubt any of them are 100% debt financed anyways....it will be the equity participants that take on all the risk.
......get out of NZO you guys. Recession?....what recession. This is just the beginning of a TOTAL UNPRECEDENTED WORLD ECONOMIC COLLAPSE! The American bull**** economy is bankrupt as we all know and all other major economies around the world cannot escape thier own demise. Oil will be one of (if not THE) hardest hit commodoty......I'm picking sub $50 barrel in the not-too-distant future. NZO WILL NOT BE A VIABLE COMPANY!!
cdu in aus are doing a share buyback atm,thier price is soaring
except the wrong way. they are in critical meltdown. now down to 136 cps. The only thing a sharebuy back will do at present is only assit the ones that want to exit or desperate to sell the stock imo
Take a deep breathe and calm down GR8DAY. It's only money...
I'm beginning to take an interest in NZO again after selling out at 149. There is very strong support between 95c-110. NZO spent years there back when it was an explorer.
Might have to get that buy order ready.
Disclaimer: Do not take my posts seriously. They are only opinions.
Thanks all for voting in my poll. I have avoided making any comments on NZO while this small poll is running and boy is the world haveing some action--the wrong way.
Will end the poll at 8-00 PM on sunday so any other comments or results are still welcome.Have two phone votes.
Cheers Digger
In this market nothing makes sense. PPP has net cash of more than 19 cents and the market is selling them at 17.5 cents. So figure that one out. NZO can go lower simply on fear alone. We may see below $1 if the world markets continue to tank.
Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
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Originally Posted by friedegg
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