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Current P/Book values for oil companies now seem to reflect that the market is pricing them with oil reserves at current prices, not reported prices. If it bump

Current P/Book values for oil companies now seem to reflect that the market is pricing them with oil reserves at current prices, not reported prices. If it bumps lower around Q1 and Q2 as actual oil price filters into the books then that would be pretty irrational, and likely reflects opportunity.

peteretep 12y ago
Right? The whole article seems to be based on the premise that the markets are too stupid to have done the maths, and will need to have it spelled out to them, but somehow this Bloomberg journalist has discovered a huge secret
- ubernostrum 12y ago
  the markets are too stupid to have done the maths Lucky for us, the markets are made up entirely of perfectly-informed, perfectly-rational, perfectly-self-interested frictionless spherical humanoids in uniform harmonic motion.
  - peteretep 12y ago
    That's a straw man. If you think the markets are as predictable as you're suggesting they are, put your money where your mouth is. Otherwise, best to assume the information has already been priced in.
    - mjevans 12y ago
      It seems satire is lost on you.
      - peteretep 12y ago
        You mean sarcasm, and you should read more carefully. The post was implying that markets are irrational, through sarcasm, and that in fact it was possible to predict this irrationality. HTH HAND.
monochromatic 12y ago
> Current P/Book values for oil companies now seem to reflect that the market is pricing them with oil reserves at current prices, not reported prices. One would hope so. The efficient market hypothesis may not be 100% true, but I'd be surprised if it were that far from true.