It should help some, but also ECB meeting Monday which is another wild card. However, with Draghi in charge, it's usually a market friendly event.
On Sunday 6/2, another China PMI reading comes out. If it's even remotely decent, BTU should rally. I think a bad number is baked in the price, but a really horrid number could make for an ugly Monday.
Bad China PMI overnight holding BTU back even with positive NG report this morning. Trashy ACI and ANR are up, but China connection is killing BTU's relative performance.
It's a high risk, high reward proposition. PWE yields north of 10% because the market believes a cut of at least 20% is likely. I do believe that the dividend for this year is probably safe due to asset sales. However, the direction of oil prices will be the biggest factor as to the possibility of a cut. Today was an ugly day for most commodities, except NG, if oil continues its nose dive then a cut becomes much more probable.
As someone noted before, there's not much short interest in this stock. The dumping is most likely on the part of income investors who are worried about a prospective dividend cut and further principal loss.
Is a dividend cut priced in at this level already? I know most of these former Canroys drop like a rock when the payout is reduced, most recent example is ERF, a big drop then somewhat of a bounce and stabilization in the 7-8% dividend range. It seems like PWE's price already reflects a 25% cut, but not 40%.
I'm not short, I'm long 15000 shs. with an avg. cost of $10.51. I'm only trying to figure out what's going on with the stock. Generally, this board is pretty helpful compared to some on Yahoo, The DAL board is aweful
I doubt if shorts are too nervous, sideways movement in an up market isn't bad from their point of view, especially if they're awaiting bad news soon.
Also, they could be ready to launch a secondary offering or some type of dilutive issuance. The selling yesterday looked like pure panic. Certainly, not the way to unload a large position, the lack of bump up today does not bode well. What happens to PWE in a down equity market?
It looks like another bad day for PWE. I'm seeing a lot more sell orders than buys right now. Other Canadians like ERF are up strongly. This is being picked on for a reason.
Substance is my guess. Too much selling pressure with no meaningful bounce back, it must be bad news. Too much confidence by the sellers today.
I might agree, but sellers/shorts seem to be convinced. Any .10 move back up is met with a barrage of selling, if we seem strong buying in the final minutes-then maybe you're right.
Only, plausible explanation is a dividend cut. This is more than just some profit takings. I came close to selling at a profit this AM, then I went to lunch at all hell broke loose in the meantime. I guess we'll all know soon enough.
Sure, I've seen other Canroys go to zero or very close to it. Enterra is one that comes to mind. I am not sure that PWE is faring any worse than others over the last few weeks. The "risk off" fear of deflation along with recent US inventory reports are killing most energy stocks. My fear is with this stock near its 52 week low already, what happens when the overall market corrects?