It was a freaky friday. With the quarterly reports all good and oil price remaining elevated, I was expecting for my stock STO to shoot for the moon, but it seems people are not sure how to react to the news. I guess, like life. It’s either half-full or half-empty. The Full Year Report was not “bad” – “bad” – the full year net profit was 51% — yes! 51% and still that performance is “not good enough”.
I guess (as found in their report) it’s the dip in the production and consequent sales volume down around 5%. The final dividend was also less than expected at 15cents.
The share price value was eroded a little bit by the “nonbelievers” before finally getting a bump up near the close ending 1c up.
Naturally, I was a little at a loss, but judging from the volume – low volume of buyers but then again also not a lot of sellers, I think investors just considered this a ho-hum event.
Then comes the US trading session, and Oil continued its climb up to $104. Even with the company’s lowered production, the oil price is going to be sky-high. The trend is unmistakably there, the triple threat of dollar-euro dynamics, Asian demand, and Iran (geopolitics) point to higher oil prices. I thought I’d better see about adding more to my shareholdings.
Then waking up to news this morning, Iran did the unthinkable and shut out exports to France and Britain. STO has moved up 30c so far this morning.
As you can guess, the market sees that report half-full.
