Hello fellow KNM observer/investors.

I've just offloaded my KNM at 0.485 at close today to stay on the safe side by observing tonight's developments in the US and Middle East.

Interesting points being discussed here... if KNM is a proxy to crude oil price, but if at the same time a rise in crude oil is bad for economy (which affects DJIA->KLCI), do KNM investors have to hope for crude oil price to rise or fall?

Something to ponder really...

This post has been edited by chilaxis: Jan 6 2009, 09:38 PM

I think more oil demand (e.g. Israel/Hamas war) = more profit for KNM.

However, my opinion is higher oil price doesn't necessarily equate to more profit for KNM if the oil demand diminishes.

Oil demand is the key to more projects.

haha..good one SKY. Ai.. if i had enough money to do that I won't be spending time and effort to invest in KNM already

Come to think of it, in economics usually higher price = higher demand.. maybe that's why KNM price and oil price go hand in hand.

This post has been edited by chilaxis: Jan 6 2009, 10:40 PM

>.< shouldn't have let go yesterday.
Caught it back at 0.500.

---

Added on January 7, 2009, 9:30 amHaha Azeroth, we could've traded

This post has been edited by chilaxis: Jan 7 2009, 09:30 AM

And now back to 0.505... we need a strong heart for investing in KNM..

Like I said, we need to have a strong heart... >.<

I'm with you there, sticking to my guns with KNM.

Yup good news folks. The Crude Oil price is stablizing above USD42 as of this moment and not dropping like a knife anymore. In fact I see it nudging upwards slowly.

Did some research on how the Gaza war affects oil price.

Insightful points from an interview with a seasoned oil trader on CNNMoney's video. Key is whether the war spreads beyond the Israeli border.

Check it out here:-

http://video.aol.com/partner/cnnmoney/gaza...iltrader:122908

My opinion is that if the cost of a barrel dips below USD40 significantly, then it will affect KNM's business as the cost of oil production is approx. USD40.

Since it then makes no business sense to continue, or because of cash flow issues, this will force KNM's oil producer clients to go under, and therefore affecting KNM's projects being cancelled... and the stock price will drop.

That is the correlation I see la between the company's stock price and Crude Oil price.. thoughts?

KNM's price stunted because of the drop of the crude oil price again today. Patience...

Crude oil testing the previous low of USD37.
imho, since oil price has already dropped 75%, downside will be limited.

Hi 1698, frankly I don't know what is the bottom for crude.

However, what I do know is that crude has overshot on the low end, and is now selling for less than the cost of production. Production will not continue at a loss, and you can rarely go wrong investing at prices below production costs.

Trust the power of supply and demand, crude oil going below production cost will not be a long term phenomena. Bodies such as OPEC has already taken action to curb this, it will take a bit of time before the effects will be felt, and i'm quite sure that when the effects are felt, the crude oil price will be stabilized.

O&G counters will be probably very good if we look into investing long term now (oil price already dropped 75%)! But for short term play, there is potentially a risk of contracts being cancelled of course, can't deny that.. so it's a bit of a gamble if you invest money that you need to take out soonish. It's your call.

Still holding onto your KNM, umiko-san?

Nice, so yours is a time-based strategy. All the best!
For me I'm thinking of holding onto it a bit longer till March and then see how.

Still holding ... patience >.<

Great discount now, go for it!

Looks like it's dipping again. It's still a HOLD for me, unless fundamentals change in a big way.

mo_meng, we're in the same boat. No need to regret! take a step back and look at the bigger picture. Longer term, this counter got a big chance.