RE:Again, WHY IS MEG STAYING IN THE DUMPSTER?My take:
On a longer term basis, MEG is performing alongside others within the peer group, and longer term performance is more important and easier to predict than short term action, based on the long term fundamentals and outlook.
On a shorter timeframe, there are influences to the share price that one cannot predict, however things will very likely return and rise up to the mean.
For example Friday, if you were daytrading this stock, it would have blatantly stuck out that Friday's trading action was out of the norm.
If you were watching price action, it broke it's ties with the influences of the general market, and post earnings exitement, and after that it had very little correllation to it's peers in the industry, the SP500, or oil price for that matter.
When this happens, this is an early warning to you for the day, that something is not quite right, and it may be best to stay out of the water for the day until it washes out.
Volume ended up being 50% higher, the highest volume day in over a month, while for others it was a low volume day.
The potential reasons for Friday's price action are many.
Whether the earnings timing had something to do with it, hard to say. Earnings were no surprise, and MEG has very positive guidance for the second half of this year and beyond. This is what you should focus on.
We also had the last trading day at the end of the month, before a CDN long weekend where the market is closed Monday, and some large position planned to exit in any case, for whatever their reason. Perhaps they were too heavy in energy, or had to balance positions for reduced fund inflows, who knows.
Rallys were sold off in chunks, spiking the price down into relatively poor support at that rate of selling, where there were not enough bid positions at times to support the price. This was happening while other oil stocks were sticking together, trading as a herd. You could see this going on if you were watching your Level 2 feeds.
I always watch when a stock diverges from the rest of the pack, as this is when opportunities present themselves for a buy or a sell.
MEG is quite large, but remember, it trades only on the CDN exchanges, and not the US, so sometimes that hurts, sometimes that helps.
Keep in mind we have some majors reporting next week as well, SU, CNQ, and if good and the prices stay up after the reports, I expect to see MEG's price action return to follow along a lot closer with and catch up with it's peers.
MEG is already 1 month into Q3 already, churning out cash at incredible rates. Q2 hiccups are now in the rear view mirror, so the market needs a bit of time to digest the forward guidance, and stock target price upgrades, and see that the projections are actually delivering and on track.
In the meantime, back up the truck, dive in the dumpster, and load up if you can.
TheWokeLemming wrote: Seems nobody can answer this one.