To buy anything in this oil plunge is very foolish and a river boat gambler mentality by mgmt.
Watch and learn. .35 was the low for the day and intraday support for this dead man walking stock. This is where speculators came in. If .35 is busted it goes back to .25 so watch carefully. .25 is major support and .50 is major resistance.
You fail to realize people bought this stock years ago only for the dividend and pushed it way above market value with the FED's zero interest rate policy. Now that rates are just now starting to normalize, people will be selling to get out the barn door before the stampede starts.
If this deal stands as it is, DVN stock is headed for $25-30. They have far too much debt and risk exposure with a collapse in oil prices.
OH the pain for retirees who bought this for income. Book value on yahoo is way overstated with current oil and gas prices. It can go to 10.
Oil is not the problem for CHK, it's nat gas prices plummeting to new lows. CHK is about 80 percent nat gas!
The over 10 percent plunge tells you that Wall Street thinks this DVN buy stinks to high heaven. DVN has far too much debt to be doing a deal like this. These kind of deals come from young mgmt. that don't really know how to manage money and debt.
3.75 is likely near term support this week. However, longer term, It's going back down to retest the lows. Good sell early on Monday! Buy back at mid 3 level later this week for speculation.
This stock has tremendous distribution going on. It's below it's major moving avgs. and is going lower. Hedge funds are selling because the "reach for yield" and "financial engineering" game is over. LXP is going down to at least 6.55 before the grass turns green!
Just as I said some weeks ago, If .20 is busted it goes to .15 since this is where the hot money will try and support this dead man walking stock. Watch and learn people.
I heard it was 30 to 40 percent and saying this not intending to drive price down. It actually might help the stock price in reducing overhead cost the larger the number.