* working capital of $0.12 per share with no LT debt
* multiple light oil well drilling locations in Viewfield, SK
* carried interests with no drilling costs
* natural gas at Pembina – 10-12 additional locations identified
I have posted on this topic a few times in the past but thought I would reiterate some of my points using an example from the QIS Stock Challenge. I'll use Cindos for an example (sorry Cindos - but it makes my point) as this account purchased shares in Horizon's Oil Bull ETF at the beginning of December 2008. I looked up the NYMEX price of oil at this time which was approximately US$60 per barrel. Today, oil is trading near US$70 per barrel - an increase of 17%. In a perfect world, the 2X leverage ETF should be up 34% but this is not the case due to volatility in oil prices eroding the value of the ETF over time as percentage gains and percentage losses on a day-to-day basis are not equivalent. Instead, the ETF is actually down 62%. Yep - that's right - a 62% loss when in actuality an individual buying the bull oil ETF last December was correct that oil prices would rise.
Which brings up my earlier question - is anyone actually shorting these ETFs and making a killing?
