RE: RE: Analysts Keep Recommending Eric Nuttal thinks the large short position is caused by large investors who are negative on the
price of oil. They look for a pure oil play that trades a reasonable volume and short them on the
speculation that oil will come down in price. The scarcity of pure oil plays that have volume makes
LEG the prime candidate so it is shorted by default.
The lack of logic in this approach makes me skeptical and I do not think the shorts know more
about LEG than Paul Colbourn who has consistently been buying the stock in what amounts
to a sizable position.
I do know that when the oil market turns there are always a few very well positioned stocks that
are extremely undervalued and turn out to be the big winners in the next bull market. I think LEG
fits this profile.