RE:RE:let's assume they get it right what are stock prices in 2019Great post.
Could not agree more to that "pride of ownership" statement.
This is what ruined LT SH the most.
SP of ALA was $28+ still just this(!!) July. The writing was on the wall that paying $88+ for a stock that would be trading at $50ies was a huge mistake.
If not that sickening "pride of ownership", the normal heads would have easily realized to pay the (relatively) inconsequential break fee and ended this fiasco.
And mostly because of this "pride of ownership" (best assets, growth etc. total nonsense and bs) we are all having here these painful discussions and guesses ... that otherwise would have been completely avoided.
Fantome wrote:
John..Great Question
There are two issues at play here..
1...Will the announced plan on the 13th be credible and the guidance transparent?
2... Can they actually execute the plan without any hiccups?
I believe that the answer to the first one is yes....the new CEO doesn't have any baggage WRT to past decisions and so he has no "pride of ownership" and therefore can be somewhat ruthless which is what is required. Second the new CEO is a "math" guy with a finance background which is what is needed right now.
The answer to the second point is much more up in the air and will be what the Street will be primarily focussing on...announcing a plan is just a plan..there is no beef there..the beef is in the execution.
As I said earlier..I expect that there will be short term downdraft in the price for a day or so after the announcement and then a modest price recovery. Longer term it is much harder to predict since it will all depend on how successful the implementation is.
The other thing to consider is that ALA is not the only pipeline fish in the sea and share price of ALA will also depend in part on what others like ENB IPL and TRP do and their relative success..