RE:RE:RE:Rebalancing infoThere certainly are some tremendous advantages to the right buyer. Some of these companies have huge tax losses still on the books which would be worth significantly more than they are now if there is ever an oil windfall tax. MEG, ATH, etc..
Instead of paying taxes, they can use the money towards buying it to get the tax loss, and get an oil company with decades of FCF with decades of reserves for peanuts. Al this in a new world where you can't build anything new anymore due to higher costs and a stifling regulatory purgatory.
Makes a lot of sense it would seem.
Present devalued share prices today may bring in offers.
Nuttall has said recently he doesn't expect MEG to be around in a year. It is quite ripe for the picking to be bought. Will see.
Nice storm here in Chiang Rai tonight.
w8asec wrote: Agreed Migrain;
Do you think there are some massive M&A advantages at these prices?
MigraineCall wrote: Great info. Thanks.
To me, this points out just how much on sale the Canadian oil industry is right now, 30%. Perhaps they will drop more, like in a store closing liquidation sale, each day cheaper, till they are sold out. Nothing has changed in the supply demand picture or corporate profitability. Longer term oil future curves are still holding up high. It WILL turn back up and head higher, we don't know when.
Looking at where the volumes are coming from, this is mainly a US led rout, an effect of a global commodity rush to the exits. Oil stocks are caught in the downdraft for now. Chevron, Exxon, and all the big players fell.
Thursday's trading action was surprising. Smells like capitulation. Oil was flat as was the SP500 and general markets, yet oil producers were hit. I see the divergence is an opportunity.
We are days away from finishing Q2 with record blow out profits, so I am expecting a big bump in CDN oil in August after companies report. Numbers don't lie. I have been buying Aug call options for a bounce.
w8asec wrote: Below are the stocks that I own or follow in the Oil and Gas sector
I decided to calculate their percentage drop from the year's high of a few weeks ago.
Hopefully this might help those wanting to rebalance for taxation or portfolio strategies... whether you prefer oversold or resilience
I'm hopeful we will experience a hockey stick recovery at some point... most likely around Q2 reports.
I'm posting the percentage drop alphabetically by sticker symbol... and wonder why PIPE & BTE has dropped soooo much in comparison to peers... also soon at this rate of drop share prices will be less than EPS, lol... The faster it drops to the bottom the better.
ARX - 35.3 ATH - 34.9
BTE - 39.4
CJ - 29.0
CNQ - 26.7
CPG - 36.4
CVE - 25.9
ERF 30.3
HWX - 31.8
IMO - 20.2
MEG - 32.2
OVV - 29.6
PIPE - 42.7
SU. - 20.3
TOU - 23.9
TVE - 36.0
WCP - 29.0
Good luck