TB7 (aka WL7), you called it! Yes, just a little bit of good news and your recent GSPE share purchases will payoff like a slot machine.
Making a couple of assumptions and doing some math exercises shows that, @ $100/bbl, for every thousand barrels of production per day for an offshore platform, the GSPE stock could rise to as much as 2-1/2 to 3 cents per share.
That is a gross number, without taking out costs and overhead. But still, it is a very healthy return for a cost basis of .0024, .0033, .0055, or even .01.
And while fantasizing, there are three properties under consideration. What if all three make only a thousand barrels per day each? And then the well(s) are drilled. Are we to $2 yet?
So there is the formula for wealth. And do not despair. Even though you did not make $100 for each 100,000 shares traded, by holding your shares while the production plan develops, your net worth is, as you predicted, now ‘unreal’.
And bonus, each time we go through a period of good news, the cycle repeats. The difference is that each time, instead of making $100, we are making $100,000, and perhaps much more as it is cumulative. And more shares equals higher wealth.
That is the moral to the story. And most people miss it, because they do not stick around for the finale. That is the approach used by the whales and the reason why oil is called ‘black gold’. And just because Joe wants everyone to drive EVs is not going to change it.
Yes, we are more likely to get good news than not. And if you happen to get caught ‘out of the stock’ on days the news breaks, there is also a formula to calculate the amount of money you do not make. And buying back in again? Costly.
Follow the money.
Mrs. Smith
