MEG outperforming again todaymoney is coming into MEG and shorts are covering.
MEG was a very risky stock due to their debt situation but now with a floor under oil at least for 2 more months and storage going down Meg has become a good value at current prices and with some added benefits of potential takeovers as well.
at 50 wti they can cover 2017 capex and grow production and lower costs.
the saudies want oil in the 60's not 50's in 2017 and then they can balnce their budgets and everyone is happy.
there is still risk the deal will fall apart but right now they look serious about moving oil into a higher range than 40-45.
of course oil won't go straight up and demand might also fall off with higher prices, hard to tell how it will all come together.
but bottomline
MEG has good torque to higher oil prices and they are much less risky witn oil at 60, than 50 and again 40 wti.
as oil prices go higher then MEG's risk profile falls and stock price goes up and it's that simple.
as stock price goes up shorts need to buy to close short positions and it becomes a vicious circle for the shorts.
again I point out that MEG has 225 million shares outstanding but 30% are controlled by big shareholders and that leaves a small float for a highly shorted stock.
more reason to cover your shorts before this thing starts to run bigtime.
good weekend all except liars and bashers and you know who are you