I noticed this HUSA stock. And seen that they were steadily over the $10 line for most of 2010-2011 and at the beginning of 2012 they started going down. Yahoo Finance shows that they were upgraded and downgraded by analysts opinions. But what is the cause for all of this? I tried to find any info, but did not see anything too obvious. Can anyone with a keen eye point it out to me please?

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    Absent any changed fundamentals in the company, any answer to this question may only amount to speculation. Definitive reasons for market movements are frequently elusive. – Chris W. Rea Feb 18 '14 at 21:29
  • In the discussion/comments to the given answer - there are couple good ideas. – KingsInnerSoul Feb 19 '14 at 14:29
  • They're just that -- ideas, not definitive reasons. My earlier comment stands. – Chris W. Rea Feb 19 '14 at 14:37

In 2011, the real price of oil peaked, and has been steadily moving sideways since, the current natural snow disaster notwithstanding.

This is undboutedly due to the US's growing oil independence, evidenced by the fact that gasoline imports have dropped to nearly nothing.

The oil sector's market capitalization has followed suit; since the equity in question is a nano cap, its moves will be more pronounced as we have seen.

The US, the main source of world oil demand, continues to grow oil production at record levels with no signs of stopping, so this sector appears to be undergoing a similar situation as the 1980s after the last oil boom of the 1970s.

China would have to continue building empty cities at a much higher rate to keep oil prices high relative to the US oil production growth rate.

Specific to HUSA, the Cachirre #1 well was abandoned, announced July 5, 2012.

In my opinion, insiders were dumping as soon as they were aware that the well could not produce in February.

  • So if the price of oil goes up the HUSA share will go down? and vice versa? What can cause their stock go back up? – KingsInnerSoul Feb 18 '14 at 16:39
  • @KingsInnerSoul No, the real price of oil must rise for HUSA to hope to rise. HUSA will have many special characteristics beyond the oil market as well. Oil demand would have to spike or supply would have to fall, both very unlikely scenarios because persistent high prices spur conservation and alternatives, and the US is increasing capacity every day. – user11865 Feb 18 '14 at 16:59
  • -1 Only a hint of reason as to why HUSA went down, but loads of information on the oil market, with no effort made to relate to the problems with the firm in question. – DumbCoder Feb 18 '14 at 17:22
  • @DumbCoder Noted. Please note edit. – user11865 Feb 18 '14 at 19:10
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    @Kaushik It's up now. – user11865 Feb 18 '14 at 23:19

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