RE:Strange ActivitySGY has less than 2/3 of the production of OBE, and less cash flow, and non of the heavy oil growth potential, and almost none of the increased gas price potential. All divided by more shares. Translation, SGY is worth less than OBE.
If OBE drops, intelligent investors would sell SGY to buy OBE. Nothing strange about that.
OBE's drop is more unusual, but may be explained by some of the following.
BMO (worst analysts in the business in my view), remaintained their "underperform" rating on OBE (translation Sell), with a target price of $9.50. Recently increased from $3 something! Their "logic" is because they claim OBE has "lower growth outlook than average". They didn't look very closely if they beleive OBE's growth is lower than average. Given that their prior target was $3 something, its hard to know if they are just slow, or if they have an agenda.
If that isn't strange enough, then we have TD (who do not follow OBE), however their software does state an average of 12 month analyst forecasts. TD has an error in its software. TD's software states that only one analyst follows OBE, and that anayst's 12 month forecast is $0.01! TD then uses that error to give a 12 month forecast of negative 99.88%!
TD has had that error for several months. One wonders where it originates, and what it feeds into. (FYI, that is what I call strange). If that software is being used for any algorithum that incorporates average anayst forecasts, then any such algorithum is going to be firing in the wrong direction!
If you want to know what the actual analyst forecasts are, you can find them in my prior posts.
If anyone cares, I'm fully invested in OBE, but on a day like today, I couldn't help but add. I suspect others are doing the same - some may be selling SGY to do so.