A SHINER to the head?...Or something more insidious happening?
Very interesting day today. Here are my thoughts for what they are worth (which is very little indeed) on a trifecta of occurrences which clearly spooked investors:
- The FPF-1 returning to the dock. We simply do not have enough information to ascertain if this was part of the normal inclining test procedure or if something was discovered that required an immediate return to dock. Price movement and volume of shares tells me that if something major was discovered we would have had a bigger down day on higher volume. I am therefore "inclined" to believe it was part of a normal procedure which unfortunately triggered some panic selling and stop loss orders.
- The possibility of Delek purchasing 20% of Kraken now excludes the potential of a bid for IAE? I doubt it. The Kraken purchase is a strategic way for Delek to obtain a stronger investment presence in the NS oil industry and is a smart move for the long term. It is also a relatively low cost bolt-on for them. Will it be combined with a bid for IAE at some point? Are the two possible acquisitions related? Who knows, but I would not jump in or out of IAE based on the Kraken news.
- Price of oil declined. Yes it did. I expect it to continue in this consolidation pattern for another 2-6 weeks as I have previously stated.
So, I may regret this but I did not buy or sell any IAE on the trifecta of news today. That in itself might be reason enough for more rational investors to run for the hills because WTH do I know?
Now, back to sitting on the mountain PEAK in Whistler and watching this story unfold.
The Crow knows, Peak hopes, and SHINERS fold.