There is now such an alarming amount of nonsensical claims on this board I had to say something. Let's take a deep breath and relax. It sucks dropping from 90 to 63 in about a week's worth of trading. So now what? That remains to be seen, but there are some comments that I have seen here that I think are worth addressing.
1) Exclusivity done, bad for IOC, something is wrong?
We don't know that. It may be good for IOC, it may mean they are pulling away, but it may be what is necessary to push XOM to close. We have to wait and see, but nothing is concrete either way.
2) They are starting over again, because negotiations have broken down with XOM.
Again, WE DO NOT KNOW THIS. I think we have to give the new CEO the benefit of the doubt given that he has been at the negotiating table before and has closed more deals than anyone on this MB I am sure. Let us not forget that we all seemed to like the new choice in Hession. Again we wait and see.
3) There is not enough gas. The tendon slashers inhaled it all.
I believe we have to give the benefit of the doubt to Hession, as he did his due diligence about the resource and about the job he was taking as was discussed in the CC. That argument has been off the table for some time, yet it resurfaces as the price is dropping to cause yet more panic and fear.
There are no guarantees here, we all knew this when we invested in IOC or in any other company on the NYSE. I have said it before and I say it again. This stock is not for everyone.
But let us not forget, the story is still the same as far as we really know with the ONLY FACTUAL exception at this point being that the negotiations with XOM are no longer exclusive. I'm sure I will be criticized for this post, but I'm just trying to add some clarity to what I have seen as distortion and hyperbolic conjecture here today on both sides.
Can you also address the point of how some pumpers were pumping this at $107, now at $63s also they are pumping, and even if this goes to any price level, they will keep pumping it, and will ask folks to maintain composure.
what do you have to say to pumping at any price level, low or high?????????????? i mean, you know it, if this gaps down even $20 more tomorrow, you will post saying 'lets maintain composure, its a strong buy' and you will probably be right at that point. LOL
4)Purportedly one factor in the huge selling is that if there is a further delay in signing the deal, and or getting Govt approval which is when IOC could expect the first payment, IOC may need to do a secondary. Clearly their debt borrowing capacity is not large at this point, the borrowed 75 million, 37.5 available now. That's not even enough for 1 well. If they could have borrowed more as a sign of strength, wouldn't they have? Call this