Truth, Hibiscus doesn't need brent to go above USD 90. Most of Hibiscus oil is Tapis, and Tapis is 7-10 above brent's. Hibiscus has shown to make 100 million a quarter with realized oil price of 90. At current oil price, Hibiscus should be able to make 450 million annually easily, unless for writing off some investments. Hibiscus needs to lower the investment to improve dividend payout. Current payout ratio is simply too low and investment too aggressive for some investors to invest in Hibiscus.
Marvelous! Brent oil USD 88.51! Haha! Very soon will go beyond USD 90! Tell you what, we expect more energy consumption with the mushrooming of data centers in keeping with the AI megatrend! Why? You need to keep the data center cooler to ensure optimal performance. Cheers!
Hv you been and stay in data center? Tell you what, it is very cooling inside due to functioning air conditioners, otherwise, it will be very hot that no one want to go inside!
That’s why data centers need lots of energy consumption. Smart investors, you should know how high the Brent oil will go in the future in addition to the unsettled Middle East and Ukraine Russia conflicts, of course, the ever-rising global temperatures!
Try to stop Brent oil and natural gas supply and see what will happen? All constructions for data centers could not proceed and existing data centers also can’t function due to lack of electricity!
Many investors chasing high for AI or data center related company… actually the best of all is holding crude oil company, without which, data centers could not run and are useless. That’s why Warren Buffet bought Occidental Petroleum shares!
Warren Buffet would not increase his stake on occidental petroleum if he could not see high crude oil price translating to massive profits to the company and hence higher share price!
Assuming hibiscus able to sustain EPS 12+ per quarter, and calculated forward PE of 17 (same as occidental petroleum), hibiscus should be pricing at 8.5, not 2.75.
Looks like Bro Azoff hv sold off hibiscus and yet to buy back, now unhappy that I bought up and making hibiscus shares more expensive than his selling price… Bro Azoff, don’t worry, I gonna dispose all my hibiscus tomorrow… good luck…
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Sweetchocalates
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https://amp.cnn.com/cnn/2024/04/19/middleeast/iraq-explosion-military-base-intl