Anybody tracking Abaan Offshore? I have recently bought it in the hope of a turn around. Their debtor days are improving.
Company has defaulted loan payment …how come you see it as turnaround read balance sheet.
Oh! Thanks a lot. I took the statement on the Screener, " * Debtor days have improved from 227 to 127 days", on face value.
What’s up with these wild moves of Oil India? I mean, did they discover a magic oil well or what?
I can’t find much info other than the usual suspects: bonus news, production volume ramp-up, NRL starting up. Seriously, are these news bites enough to shoot it up 50% in a month ?
Last week, I was this close to being seduced by the analysts, but I ran away faster than a cat in a room full of rocking chairs after reading Om’s opinion. 
Thank goodness for VP – my go-to place for sanity checks and reality checks.
There are still buy calls from a few analysts. If we’re only halfway through this bull run, are we looking at another 1X here? 
(I know, I know, I’ve been reading too much euphoric sci-fi fiction and getting fed with too much positivity. now i started dreaming future where aliens farm and gift us all their produce for free and there are money rains. I need to wake up 
)
D- Holding
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You can wait for a few days to see if there is any institutional buying. Price increase with institutional buying could be an extended story. Not that institutions will hold for long term or that further price appreciation will happen soon, but one can hold on to the position and not exit. Averaging up can also yield some profit. Big losses are one kind of experience, and big gains are another kind of experience.
I have a position.
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It’s ministry data.
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Due to my upstream industry background I have been close to ONGC (my ex-employer too) and Oil India for many years and have good visibility into their operations. They continue to face challenges and are operationally very weak, lagging in metrics such as reserves replacement, cost of barrel etc. Cairn India (Vedanta) and Reliance are far ahead of them.
Having interacted with quite a few market experts in the last few years I get a feeling that many don’t really understand this business which is driven by geology.
India as a country lacks sufficient oil reserves within the landmass and last 40-50 years of exploration efforts have already proven that .
So Oil India and ONGC continue to invest capital in improving recovery from their existing fields but then they have also reached a point of diminishing returns (you have only limited hydrocarbon deposits which will last for a certain time period). OIL hasn’t found any major discovery in so many years which is key to reserves replacement. ONGC has discovered gas fields in the recent times but their major revenue comes from oil sales where again they haven’t discovered big fields in many years.
As for the stock price rises, I will probably link this to euphoria currently surrounding PSU sectors where narrative has pushed up their crazy valuations. RVNL, a company that used to trade at 7 p/e today trades at 70 p/e. Those who have invested in these counters will justify these valuations citing orderbook and they may be right.
When stocks of highly professional and efficiently run oil and gas companies (with better technology, access to capital and resources) globally languish this excitement about prospects of ONGC and OIL is both baffling and amusing.
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