An awful big drop this morning with the market almost steady and earnings due out this week. MM's trying to flush out weak hands or people with inside info bailing? You would think earnings would be decent given the weather in NE this past winter.
I don't think MM's play games with this stock, not enough volume. I think some folks have been forced to raise cash. The low in November was $5.89 on forced liquidation. The rap on this stock used to be that they couldn't afford the inventory when oil was $140/barrel. With oil at $45 life should be good?
Did they hedge any of their supplies at those higher prices? If they did that would hurt.
As I understand how their business works, they hedged their inventory but only to lock in their margin. At any rate, the inventory turns relatively quickly, and probably even faster during the heating season. Also, when prices of inputs fall, don't you think sellers make sure they sell their higher priced inventory first before they drop the end price of their product. Prices are always quick to go up and sticky on the way down.
We should hear more about the pricing when they report. I would think that they were able to maintain their historical margins because of the oil price decline. Should have also helped their customers as the declining prices should have kept people from conserving as they would have when prices spiked.