Thank-you Ben & Camron....
Might I add yet another ten cent opinion with the welcoming of your approval?
Specifically, that is: The sector which SOLM falls under.
Now, as you all are probably well aware of... OPEC has cut production with their claim based on lowered demand. This could actually play out in SOLM's favor (as with other green transportation stocks). I will explain the thrust of my theory in detail.
Demand for oil has not lowered.
It's "more-likely-than-not" a political ploy. Exxon's proffits just came in at record earnings the other day. How could that be if demand is down? Oil tycoon Boone Pickens claims that the world is currently at peak oil. Meaning: That demand for crude has met the world production supply, with no new oil deposits being pulled out of the ground. So why would OPEC really cut production? World population is constantly increasing, thus continuing to raise the demand for the precious commodity, right???
Wrong.
Oil is now used as a political weapon. Look who's economies are REALLY suffering worse than us right now. Russia (our arch enemy), China (with the world's largest population to keep happy), and Iran (the world's 2nd largest producer of oil). How does this apply to SOLM you ask?
Well my friends, the pendelum always swings to and fro. It is my opinion that OPEC's cut in production is nothing more than a parry (in fencing terms) at the United States by Islamic oil producing nations. Saudi Arabia (our arab ally) is ofcourse playing the middle ground in the joust.
Nevertheless, it goes without question that Israel will undoubtedly be forced to defend it's mere existence by striking Iran's nuclear facility(s). This action will hit our economy like a Mac Truck driving into a mailbox (especially under current conditions), and it's my very humble opinion that I would venture to say: Stocks like SOLM will flourish on such an occasion.
One must look no further than to read and listen to the rhetoric of Netanyahu and Livni to understand that this will infact take place if Iran does not completely stand down. And why should they? Russia is making Iran's reactors, helping them along the way with the entire process, and also selling the Iranians missle defense systems prior to a tactical strike.
Think the theory is too far fetched? It's not. Why do you think that Israel is moving towards an all EV transportation network? Google it and see! I challenge you.
What's happening is actually the same old song and dance. Big dogs are fighting eachother through the little dogs. Oil is the most valuable asset in the world to provide growth for large nations. And as it stands.... The U.S. currency is still king. However, when Israel strikes, the ones who are holding the right cards at the poker table will be the proffiteers.
Read "The Oil Card". It's probably the best book published since Y2K, and it's an essential read for serious energy traders.
AI
