Since 50 % of sales are exposed to the oil and gas industry, let's take a look at how the company performed when the price
of oil collapsed between 2014 - 2016.
One of the things we learned
when oil collapsed a couple of years ago was that there was a positive feedback loop embedded in declining oil prices.
The price of
oil collapsed from near $ 120 a barrel in June 2014 due to weak demand, a strong dollar and booming U.S. shale production.
The
worst oil collapse since the financial crisis has crushed energy stocks — frac sand supplier...
Find out how this oil service stock is faring during the worst
oil collapse since the financial crisis and what the next year may have in store for one of America's fastest - growing dividend stocks.
Alberta has a revenue problem and if we should have learned anything since the international price of
oil collapsed in 2014, it is that we should not depend on royalty revenues from oil and gas to fund the day to day operations of our public services.
As the price of
oil collapsed from a peak of $ 115 in June 2014 to $ 35 in February 2016, Emerson saw its sales decrease significantly.
But the junk bond market actually began slowly rolling over a full year before the price
of oil collapsed:
Stock prices plummeted, rates fell and
oil collapsed.
Pierre Andurand, a hedge - fund manager who predicted
the oil collapse, said crude is starting a «multi-year bull run» because low prices have curbed supply.
Today we'll stop dancing around the truth and call
the oil collapse what it is: global wealth destruction of epic proportions.
We explore the root causes of
the oil collapse, including booming U.S. shale production and Saudi Arabia's decision to sell cheap oil rather than slash its output.
Then the price of
oil collapsed — from $ 115 in June 2014 to less than $ 30 just over a year later.
Given the country's swampy economy, the spreading impact of
the oil collapse, crappy job creation, higher mortgage rates over the years to come and the fact young people are being priced out of YVR (not to mention the advancing hordes of socialists), residential real estate faces heavy headwinds.
Veresen was hit hard by
the oil collapse and hit single digits in the beginning of 2016 but has since provided impressive growth.