New York, NY August 09, 2012
In a recent Penny Stock Detectives article, editor Sasha Cekerevac notes that the volatility in oil prices continues to be dramatic; he cites West Texas Intermediate (WTI), which went from a low of approximately $ 77.50 in late June to a recent price of $ 92.60, showing massive volatility. Cekerevac believes that while oil prices fluctuate, the need for oil for the world?s growing population means a steady stream of income for deep-water drillers, including Vantage Drilling.
?Oil prices will remain high for a long period of time for a number of reasons,? observes Cekerevac. ?Every year, the number of people driving increases as the world becomes more modernized; this creates an increased demand for fuel that drives higher oil prices.?
With the easy oil reserves already found, companies hoping to profit from higher oil prices are going deeper and deeper to find and extract oil, explains Cekerevac.
Vantage Drilling takes advantage of oil prices by providing firms with offshore drilling rigs that are capable of working in water up to 10,000 feet, notes Cekerevac. He reports Vantage just took possession of one of the most state-of-the-art, deep-sea offshore drilling rigs; it already has it contracted out. With higher oil prices sustained for the near future, the current backlog for Vantage is approximately $ 2.8 billion, according to Cekerevac.
The company just announced that it received two additional contracts for one of its drill rigs, adding $ 34.5 million in revenue in addition to a Thailand-based customer that has exercised its six-month option, extending its contract and adding $ 23.4 million to the backlog, observes Cekerevac.
?There are signs that investors are accumulating shares in Vantage,? states Cekerevac. ?With the recent drop in oil prices and subsequent rebound, the overall return for Vantage has been surprisingly stable.?
The Penny Stock Detectives editor notes more technical analysis is needed to define exact entry and exit points, in addition to what oil prices are doing. At the end of the day, the company needs to be well run for the price to go up, concludes Cekerevac, advising that combining both technical analysis and fundamental analysis in respect to oil stocks is an investor?s best bet at being successful in this market sector.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
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