WDS - Still Stacks Up

'Global Recession Fears’

In simple terms this is the single factor holding the price of Brent back and in turn the WDS stock price.

The ebbs and flows of these fears are represented in the graph below.






The dip points on the graph are when recession fears kick in. Although it hasn’t felt like it - the graph does show an overall grind higher over the past 10 months. Even this recent ‘banking crisis’ really just translated (again) to heightened global recession fears.

So you can react, as the market does, to this changing market sentiment from week to week or month to month…..or……you can look out say 2 or 3 years and ask yourself about the likely world demand for oil and gas. I’m still pretty happy that the global supply/demand fundamentals are strongly in WDS’s favour and buying dips around these levels will be rewarded (particularly as the 'China effect' is still to properly kick in)…..and all the while riding the ups and downs WDS looks well placed to continue paying out a 8% plus FF dividend.

Stills stacks up for me.