Crazy tradingAs a favour I asked a broker friend of mine if he would humour me and follow Surge's trading for the last few minutes today. This broker doesn't usually follow the oil and gas sector and knows nothing about Surge itself. He just phoned back and said four words, " who are these guys"!
He said with about two minutes left in the trading day, his screen went nuts with the bid and asks going beserk fluctuating back and forth wildly and from 1 lot offered to 2000 lots offered in a second and positions changing faster then you could keep up with. Then with about 60 seconds left the bids gave up at $1.10 and let it go up to $1.12, up a cent. The bid/asks were $1.11/$1.12 until maybe one or two seconds left, then a bid came in at $1.10 again and it was taken bringing the stock down again one cent! So someone with a few seconds left was sitting a $1.12 but let it go at $1.10?
He said that ain't retail that's something else.
He said isn't oil rising lately, so what's this crazy sh#t about. I told him if he had a few minutes to check out their web site and look at their latest presentation. He did and found that at $65 oil according to them they are generating $86 million free cash flow after everything, capex, dividends, admin., operating costs, etc and at $75 oil free cash flow of $162 million, he said at these levels they are basically printing money! So like he said to me what's this crazy trading all about? I had no answers for him.