Oil and gas continue to make new highs. But don't forget to keep an eye on OPEC+. That's the only thing that has me cautious right now. With a need for more infrastructure and in consideration of the reopening trade, my guess is energy sources will be needed. Regardless, a build or increased production globally could put a dent in this bull trend. Not sure if it will be long-lasting or an interim effect. But something to keep in mind I think.
The company recently released its Q4 results and provided a fleet status report. Borr generated just over $60 million in revenue and reported a net loss of just under $47 million or around $0.22 per share. The company also explained that “even though we received broad support for the liquidity improvement plan, concluded in January, we are convinced that some opportunities remain to further improve our capital structure and liquidity in 2021.”
While the majority of oil and gas stocks still have yet to reclaim their pre-pandemic levels, a stronger focus on them right now could be supporting reasons why stocks like BORR have continued rebounding.
oil is in a long term bull market after 20 years of bear market due to the rise of shale oil and the usa becoming a net exporter of oil like in the 60s .. but shale gas not only does not make any sense from an environmental point of view, it does not make sense from a thermodynamics point of view neither due to the EROI ratio .. ie when you are using more energy than what you are getting out the estraction just does not make sense .. for shale it is not only an issue of economics .. with low interest rates madness and malinvestement can last very long .. the point is that it just does not make sense .. and it is rapidly declining .. more rapidly than conventional methods of extraction .. experts estimante than 3 million barrels of oil coming from shale will not came back .. and that there will be approx 5 million barrels of supply deficit in the market by 2025 .. as oils price is very inelastic this will mean oil prices will skyrocket .. i expect over 100 by year end and over 150 by 2022 .. and who knows hw much in 2025 .. enjoy while you can the party .. life with oil at 200 dollars per barrel will be very different to todays life .. best bets ? Deep water rigs .. Transocean, Saipem, Borr, Valaris and Diamond offshore .. 20 to 50 X baggers the last 2 in my opinion
JebusLives
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My BORR chart has the same support line starting in November.
Something has been pushing this stock down to $1.20 lately.. seems to have been stuck there lately.
Once past the $1.20 wall (Today looks promising!) I'm hopeful for a quick gap up to the $1.65 target.
Beyond that you'll find a possible resistance range around $2.35 - $2.65, then $4, then $9
Not sure how cooperative oil will be, but I hope to test at least the $2.65 target by summer.