RE:Dreaming in TechnicolorI don't think anyone is talking about shorting anything. The fundamentals are here for long-term appreciation at the moment. We are just discussing whether the fact they will lose money on half their production (not just taxes) for the next 6 quarters is going to be a drag on sentiment when announced.
With regards to Pine Cliff's Royalty guidance, that is basically in line with what we are saying.
$0.90mcf x 1.15GJ/mcf (account for the energy content of PEY gas) = $1.03/GJ as of their March 8 announcement.
The strip has gone up about $1.75/GJ since then, so it's basically in that same range we were discussing.
I am wondering if protecting my position with a partial put position would make sense. Will need to see the move up beforehand and the IV. This position has become too embarassingly large in my portfolio to just let it ride.
7Twiggy wrote: IMO anyone thinking this is going down much in this enviroment is dreaming in technicolor. The short figure has been climbing a litlle the past three reports. Total short volume around 5 million, so suspect we are seeing a few negative posts from that group. Present price climb has been measured which is fine by me..Think we will see the continued slow move up. I would not even think of risking a short positon on this or any number of energy stocks