In my view, this is 'sell on the news'. LINE is fairly predictable since they hedge so much--if they can pump the oil, they should be able to meet their numbers. Management has repeatedly stated this merger will help with DCF. If they do, the stock will follow. I'm going to get jest a lil' bit more tomorrow.
OKay. So now it has cracked 5.30 on fairly heavy volume: just like you said. When will it get to 4.0-4.5? Why do you think a chart can predict the future?
Me like....Gastar's seventh non-operated Hunton well, the Mid-Con 7H (GST 48% WI, 38% NRI), has been completed and is in early stages of flow-back with extremely positive early indications.
They try to avoid fluctuations in commodities by charging a toll for transport. They have some exposure through the CO2 business, which is an oil field, but they hedge as much as they can. In one sense, low prices should help them, since it will increase volumes transported. Basically, a wash (IMO). Good luck.
But I did say something about EOG. You said the 'industry' is talking down the stock, believing it to be a scam. I think it is reasonable to view EOG as being part of the industry--and they are talking with their money. Don't you feel they their acceleration of the jv validates at least some part of the investment thesis for ZAZA? I think a small position is warranted: in my (perhaps foolish) judgement, chances up are better than the chances down. How pleasantly fortuitous--my gain (on one tranche at least) is almost exactly $0.62!
By "industry" do you mean EOG? I wouldn't have thought of them as the dumb money. Why would the president invest his own money int he stock if it was a scam? Surely he would lose, too? Think some more.
And why would EOG accelerate its investment in the JV? Did they get a better deal? Do they lack other investment opportunities? Hardly! I think its is because they are very excited by what they found in the wells they have drilled. IMO, signing them on was a great deal and lends a lot of credence to Zaza's thesis. Hold tight.
Sold the other half. Good luck to longs--I'll be watching to see how GPOR does! It has been a great ride! Let me know of any other good investment opportunities.