Tuesday, July 31, 2007

Mitcham Fundamentals (MIND)

MIND had a big jump today along with the other oil related stocks. I doubt it will last and we should see a pullback down to the lower trendline.

As promised, the a bit of the fundamental story for MIND is shown above. It is a graph of the exploration and development expenditures of the oil industry. What it clearly shows is that exploration has taken a back seat to development. If demand stays strong the analyst who presented the chart expects spending on exploration to ramp up. This should definitely help Mitcham Industries.

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