RE:Takeover?Do you honestly think there's going to be a takeover in the short term?
Why would someone buy COS now that it has a appreciated 70% based on take over speculation and flimsy cost cutting promises? With such terrible financial results (even at a realized $81/barrel), and the over arching consensus among money managers that oil is likely to fall further over the next few weeks.
This supply problem is not going away. Not until half way through the year, at least. Saudi Arabia just cut their crude price in Asia by 90 cents today. I wonder how that's gonna play out. Despite rig count drops, the production form US will keep going up until H2 2015. This is the problem that people just can't see cuz they want to try and catch the bottom at the expense of logical economic thinking.
A potential acquisitor could get COS for cheaper when the stock goes back to the 7-8 range.
skyplt wrote: Hard sifting through the bashing and other useless chatter for meaningful insights. The most logical thing I can see of late is takeover rumours.
Yet...I sold half my holding of COS. Wish I could say at 11...but closer to 9 in the middle of the jump. I got spooked by the trading halt and the $6 low. This stock has been giving me heartburn since late November when it dropped from $17 to $11 in one week.
Once again I am thinking "would've, could've, should've". Trying to figure out COS is like selecting the winning numbers of a lottery ticket after the draw took place. It goes up when oil goes down...and now down when oil goes up. There is only one reasonable explanation IMHO...the adults are discussing takeover.
I certainly hope this takeover rumour is true. It is the only viable explanation for the types of volume we have been seeing...over 15M shares traded a day. for three days in a row That's a lot more than short covering.
If COS is a takeover target, and if I was on the BoD, I would not let it go for less than $18. My suspicion is they are haggling between $16 and $18.
There has been lots of talk about the bigger fish looking to consolidate assets and reduce costs. This strikes me as one of the most ideal situations.
BTW...bought a bunch more Air Canada yesterday. As long as oil stays below $70 the airlines are going to make some significant profits. WestJet may have some issues as they do more business out of Calgary than Big Red. But this is a COS blogsite so will keep thoughts to COS.
Stunning to see the ride from 8 to 6 to 11 to 10. But what is even more stunning is the volume. This is the primary reason I think those who know way more than us are banking on an offer sometime in the next week or so. Time will tell.