Where is the price of ALGO headed?
There have been a number of things happening recently that could indicate the price will go up. To start, the Chinese stock market has appeared to stabilize, suggesting that less investment money is being pulled out of China by traders. There are also signs from Iran and Saudi Arabia indicating they are considering deals with OPEC to cut back on their production in order to bring down prices for consumers. Just days ago, the price of crude oil dropped to $77 for a barrel of oil, so that is mostly positive news.
Just as important is how investors are treating ALGO’s future. The company has pressed forward from an initial investment into early production in 2013 and has also moved to increase its growth plans in many areas. It acquired an Oklahoma oil field in 2014 and has even gone further into space by attempting to mine asteroids. All of these things suggest that the company really does want to be a large player in the energy industry for many years.
So what do the numbers do?
First of all, you should look at some of the factors behind these numbers. The company’s operations are spread over the globe, and its assets have been growing in value since the beginning. The company’s total stock is worth $11 billion, with $5.6 billion of that in cash. However, not all of these reserves are being used.
Are we about to see another rebound in the price of ALGO?
Some recent numbers suggest that a rebound is on the way. ALGO’s stock hasn’t completely recovered from its huge drop two years ago, when it fell from a high of $75 to a low of $19. Stock has rebounded slightly and touched $50 on a couple of occasions in 2015 and 2016, but then dropped back down again.
Current sentiment is that investors may finally be ready to take a serious look at the company. The price of crude oil is back up to a little over $50 per barrel, and that should help spark investor interest in any company with oil holdings. There is also a belief that if China’s economy can stabilize, it could create more demand for oil and other natural resources.
So will the price of ALGO rebound and continue to rise?
Or will we continue to see a downward trend in the price? That’s difficult to say. Some analysts believe that crude oil prices could drop again, especially if China’s economy continues to struggle. But others see the future as rosy for ALGO. A rebound in the price of oil is not just good news for ALGO, but for many other energy companies as well.
Why has ALGO slipped?
ALGO’s current position is due to a number of factors. The company has been in the process of trying to increase its production and find new oil supplies. The company’s operations have shifted from one specific region, West Texas, to another, the Bakken Shale in North Dakota. This new area has more deposits and is more easily accessed by pipeline.
The reason for a drop in price for ALGO recently can be traced back to that same pipeline being built across North Dakota. It was largely used by oil companies like Chesapeake Energy (NYSE: CHK) but suffered many delays and has taken more time than expected to get up and running. A few days ago, the price of crude oil dropped to $77 per barrel, which caused the stock to drop below $10.
A number of factors can impact the price of crude oil. A major one is the price of oil within Iran, which is often very volatile in its trading. Another factor that affects prices is OPEC’s production and policies.
Algorand price prediction
As of right now, ALGO is a “Buy.” If there is a rebound in the price of crude oil, then it may be possible that investors will begin to take more serious note of ALGO. Even if the price of oil does not recover, the company still has other strong assets that could give investors confidence.
The company has made a number of acquisitions in the last few years, including a small oil field in Oklahoma for $12 million. The company also owns facilities in Texas, Louisiana and Oklahoma. Those assets could help ALGO even if the price of oil does not recover.
It is worth noting that ALGO is an environmentally focused company and has been trying to find ways to make its operations more sustainable.
