I agree with you about the probable reason for selling, since there are no evident fundamental reasons, but in these cascading events it's difficult to say where it will steady again.
My current batch is at 10.32 avg. I had to be away for a few days and left a bid at that price based on the support level at that time. Bid was taken and once it broke 10.22 then it just seemed to freefall.
The new support level is about 8.05. If it closes below that at some future date then the next support is going to be in the mid-7's. I don't see it going lower and, if the timing is right with my other holdings, I may add more.
Part of the problem I believe is the debate over the cost of oil rigs. One side is saying that based on the daily rentals the demand is still there while the opposing view is that more rigs are being refurbished and put into production. So the increase of supply of platforms will cause the revs that they produce to decline. Seems we still have at least one maybe two qtrs before that has an effect on OMNI, IF it is accurate that the rental costs will decline.
If it is true about the increasing supply then we may have a tough time getting back to 10. If inaccurate then we should have new highs within 2 qtrs and hit the expected $17 price in 2007. Right now this is the only reason I may be hesitant to add more in the mid-7's because I will be down about 30% by then...not something I like to think about.
