RE:RE:RE:RE:RE:RE:up a penny... oil at 71.50 longs are thankful!!!!What happened was the 650 mil issue. That is what set the down draft in motion. Funds got pissed and started to sell their stock in a big way.
Globe says Crescent Point share sale called "ill-timed"
2016-09-21 07:04 ET - In the News
The Globe and Mail reports in its Wednesday, Sept. 21, edition that big players in the Canadian energy sector have pumped out stock sales to pay down debt and finance new production. The Globe's Andrew Willis, Tim Kiladze and Kelly Cryderman write that oil and gas companies tend to be serial issuers of equity, tapping markets frequently to pay for growth. Poor performance from recent underwritings, however, has fund managers openly grumbling. Some investors point to Crescent Point Energy ($16.44), which sold $650-million of stock earlier this month and has subsequently seen its share price fall by 12 per cent. Crescent Point had also previously cut its dividend. It completed a previous equity offering last year. Ryan Bushell, portfolio manager at Leon Frazer & Associates, says the most recent Crescent Point share sale was "ill-timed" and "frustrating for the market." Disappointing performance from oil and gas stocks has some fund managers opting to avoid exposure to those companies and their management, and simply buy the underlying commodity to play a potential rebound in the Canadian energy sector. Trivest Wealth manager Martin Pelletier says, "As an investor, I'd rather just buy oil."