RE:My take on BIRInteresting. Energy watcher didn't like hiking the dividend. Should have used it to
eminate debt then goes on to say if they eiliminate all debt, they become a takeover
target so the dividend might not last long anyway.
I'm sorry but I find that very confusing. Which is it? Does he want the debt eliminated or doesn't he? It makes no sense to want the debt eliminated on one hand and then say if they did that they would be a target for a takeover therefore cancelling out any positive from hiking the dividend. Therefore anything good that BIR could
do about debt would result in a negative at the end of the day. Really?
He then goes on to say the market didn't like it because the price dropped. I'm not
so sure one can assume that is the reason why it sold off. There may be some of that being expressed as disappointment but there could also be other credible explanations for the drop. If you noticed for example, nat gas sold off again and
every nat gas stock was down. Also BIR has just runup big time the day before
and was probably a sitting duck for the shorts who have ganged up on BIR almost
every other time it has tried to run.
Another possibility is the rampant fear about further int rate hikes coming in Nov
which is rippling through the markets so whenever there is a spike, investors are
using that opportunity to lighten up or exit completely in their oil & gas positions.
The shorts are using this to their full advantage.