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For investors only.
Just some idle surfing and rambling while watching a Columbo re-run on MeTV.
At the bottom of this post is a screenshot of the share price / volume of shares traded for a publicly traded company over the past five years.
The publicly traded company is in the fossil fuel sector -- what company it is doesn't matter. I'm not even sure if it's considered a good investment or a poor investment. It's simply a screen shot of a fossil-fuel energy company.
It goes back five years, essentially the period when we were living under a "make America great again" policy.
Five years ago, where the graphic begins, shares were selling for $30.
On February 17, 2020, shares had reached $77.
Then, March 16, 2020, shares dropped to $21.
I have no idea what precipitated the sudden drop from $77 to $21. It could have been any number of things. According to sites that check these things, there was no split to explain this.
Let's assume the global economy was on a roll back in early 2020 beginning back in 2016, and fossil fuels were in normal-to-above normal demand. That might explain why this fossil fuel stock appreciated from $30 to $77. I don't know. Just thinking out loud.
But then something happened that interrupted the growing global economy. I don't know. Just thinking out loud.
Now let's assume that whatever happened back in March, 2020, that caused the precipitous drop in the share price of this company, is quickly becoming a non-issue; and that fossil fuels are back in demand as the global economy opens up. In fact, there are indications that gasoline demand is coming back stronger than ever, and that gasoline demand may even break records going back to 1990 (that's as far back as these records are kept, by the way).
Is is too much to posit that this company's share price might return to where it was a year ago? As I said earlier, I don't think it really matters what fossil-fuel company this is. There must be a hundred examples I could have found.
Just out of curiosity, I decided to look at another publicly-traded company in the fossil fuel industry. The company was picked randomly -- after it was mentioned over at SeekingAlpha earlier today.
And here we go again: five years ago the shares for this company were trading for $89. During the four-year period when we were trying to "make America great again," the shares melted up to $120. That was November 11, 2019. Then in early March, 2020, the shares plummeted, settling at $48 or thereabouts.
The stock is currently trading at $87.
Let's see. Somewhere I read that fossil fuels could surge another 34% before the year is over.
Hmmm..... $120 - $87 = $33.
33/87 = 38%. Pretty close to 34%.
If nothing else, I understand where that analyst came up with "34%."
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