RE:RE:RE:MEG is down since early octoberguyf1963 wrote: wallop13 wrote: guyf1963 wrote: Look at the shorts 2015idiotman MEG will go down down whether you like it or not
I don't see the logic in a short here. What would happen if they announced the pipeline sale or a takeover? Maybe short Penn West if you're feeling lucky, but MEG...... Foolish. I find it amazing that MEG will next add 20k to 40k barrels for $25k a barrel. That's 40k barrels a day for $1 billion. It cost ATH $750 million to add 12,000 a day, and their break even operating cost is $40 to $45 WTI. MEG has 210k barrels approved and I believe they are awaiting approval for an additional 110k barrels at Surmont. So loads of potential.
Lots of if's in your reply. What do you think will happen next 5 weeks; tax loss season and a lot of newbies that bought in the first 6 months have suffer 50% losses, which they will want to offset before end of year.
So you sell and re-buy if need be. I doubt people will just sell and walk away. Meg's costs afford them a bright future no matter what happens. If the Saudis want to play, let's play. Meg's got the low costs to play that game. Worst case scenario, MEG gets bought out. Best case scenario, we ride out the slump on the back of our Saudi like operating costs and we emerge with brutal efficiency & profitablity known only to the German's. Either way works for me ;) Here's another scenario. If you were the CEO of SU and you wanted MEG and COS, who would you buy first? I would buy COS. Why? Because you know you won't get MEG for less then 9 billion, now COS wants 9 billion because you gave it to MEG. Sure you could try to explain that MEG has better assets, but why even go down that road. Think about it.