RE:TD dumpingApathy is the thought process.
I would imagine that the emotional toil that HWO has taken on people relative to its weighting in their portfolio causes them to hit the exit button and move on.
With TMX now filling up and crude prices looking pretty decent, I think there are lots of other companies out there that investors can find where they don't have to worry as much about the drama and uncertainty. You look at Precision Drilling for example (I am not a shareholder) and they are talking about generating a FCF Yield of 20% based on the current price.
Whether Management and the Board want to admit it, the fiasco of the past year has left a very poor taste in existing shareholders mouths and are a great reason why others have stayed away.
The only people scratching away at HWO are other deep value investors and we are all cheap! Until there is something to get excited about, this is just a messy situation with uncertain future prospects. The average retail investor would be pretty uninterested and for those who have been holding for a while at some point in time they may throw in the towel regardless of price. This could trade at net cash but unless the marke has faith that Management and the Board will do something positive for shareholders there is risk even in the cash. I also suspect that Cyrus capital could also be feeling apathy towards HWO as they are way under water on this thing after over a decade of owning shares.
We will wait and see what the announcement looks like later today but the business update and ROC are the only thing that will really move the share price (up or down). Based on what we have seen in the past, I expect a further non-cash impairment charge in Q4 for PNG. In Q3 2023 they wrote this business unit down from $38.5 million USD to $23 million USD which was based on value in use until the end of 2027. I suspect that they will try to take another haircut on this by $10 million.
GLTA
LR