RE:RE:RE:RE:RE:RE:RE:CPG, time for repairing fundamentals before liftoff to $20s+ValueSeeker wrote: I am of the opinion that their earnings will be positive. However, if there are writedowns it would be problematic. I plan on buying some puts right before the release. Can anyone comment on writedowns? I realize as per last release the price of oil would have to drop very significantly to cause write downs.....was December significant enough?
My option is this; the price of oil really only dipped below $50 for about two weeks; the hedges should have softened the blow of that quite a bit. If they had planned on doing writeoffs they should have done that last quarter at the latest. Bryska being hired from within should have been able hit the ground running, compared to a CEO hired from the outside. So the leeway he gets to establish that he was the right choice would be shorter. I don't see big writedowns going over well at the next AGM which would only be a couple of months away.
Of course what reality does and what I think it should do can vary considerably...