RE:something brewing with CJ ???
forecast123 wrote: The rise in CJ SP in last two days is spectacular....among the top 5 energy stock performers in last two days.... Seems something brewing with CJ ??? someone knowing some good news down the road pretty soon and so is now stocking up the stock ???
Well considering we are just back to where we were on November 8th, we are just returning to where we were.
Those that bought high entering November and got caught in the dip likely did some tax loss selling causing a deeper dip, now the money can re-enter the market from the dip on early December, next week the sellers from late December dip can re-enter.
Oil prices dipped, CJ dipped, Oil prices are rising, we have rose.
When the stock dips below $5 banks cut the margin rate (atleast for retailers) from 70% to 50% which causes margin players to jump out, and now above $5 people jump back in or those that hold through the priceline can add to their holdings with the 20% added back.
We also know that in T-minus approx 5 months that recent buyers will get anywhere from 9-16% dividend yields depending on thier cost basis and where the company starts the payout at.
Also they are deleveraging the balance sheet rather quickly quarterly if not monthly.
We also have 'smart' money starting to enter the picture as they would like atleast limited to mild exposure to a hot sector.
It's a combination of these factors that we have been discussing for several months, there is no special things going on in the background to cause this, it's just several macro, micro and company specific situational things coming together creating interest.
That said I also would not be surprised to hear us make an acquisition, but there will be several announcements made over the upcoming months that should cause more upside including debt, dividend, and free cash flow updates, likely some ESG stuff and I would not be surprised if they start announcing some higher hedges (85-90) as customers will likely want to lock in some stability from upside when some analysts are starting to talk more about a return to $100 oil, but also for us to protect from downside dips as I believe above 80 we are punching above our weight, tho spikes and dips is just regular action.