Don't think so either hedge fund or mutual fund protecting very large position, for July 15-17, 2015 there was over 60k puts at 45, 47 and did not bring stock down. No way of knowing, in any case company has enough cash to handle threats.
alidawawala, what is your basis for "negative news to comeout in month or 2 or 3" , management has said they believe everything will be ok. Why would you be on the long side if you think that is going to happen? How much down could it crash the stock?
What I think. If you like to gamble, you are with this stock, should have gotten out of it sooner. The question if you have long term view and BBEP does not go bankrupt, you will be ok. But if you don't have a longer time horizon and oil stays down for longer period this company could go broke. There are better stocks out there that you could be buying. Can you afford to stand an additional 50% drop or are you better getting out with the cash you have. Only you can make that decision. Today only down about 1cent with 15% dividend.
Memp is a much better company with a 20% dividend.
This company has a pe of 8 about 1/2 of it competition. Also been in business 126 years, so they have a lot of
experience. They are not going to work themselves into a corner they cannot back out of. The people who run this company are smart and experienced. Their backlog continues to increase and they price themselves for good profits. Very unlikely for them to dig a hole that they cannot recover from. I will give them the benefit
of some doubts and let them run their business the way it should be run.
Strong buy and expanding business with all their technological prowess.
If someone sold because they have insider information, they maybe in trouble, but why wouldn't they wait a few days until company info comes out and get higher price on their sale. With all the new contracts and additional revenues, CBI should have positive info. This makes me nervous due to my position in CBI.
I do not have a clue why the large sell off today. GLTA
I am not sure if their hedging a long position or expected price to drop big before 7/17/2015. Someone who is more experienced with options please comment here. Anyway number of puts with a strike price of $45.00
has increased from 35,613 to 37,231 which ='s 1,618 puts and number of puts at strike of 47.50 has decreased from 26,810 to 26,629 a drop of 181 puts. Still a huge position and IMHO it is a plan for a short attack. If you where long I don't believe you would want to take out this expensive insurance to protect your position because stock wants to move up. Why bother to hedge long position unless you know something no one else knows. Insider info, etc. Time will tell. GLTA PS I am nervous about this.
You may be right, but to take total control over a stock , control supply & demand, and essentially
control the price sounds like monopolistic practice, why do the have antitrust suits against companies, so it is a manipulated market , just like the Chinese are doing now. There needs to be protection from these practices. I hate wall street because they have the power to do what they want no matter how unethical.
Notice share price falling on very low volume - less then 200k shares. To drop price there needs to be more selling than buying and that is what they are doing. The traders with the July 17 expiration puts are working on this very hard. It looks like they have the clout to win, or I should say large positions which can be used to manipulate the stock. I hope the SEC is looking into this.
I would like CBI management to come out and say they are under a short attack as they must have some idea who is selling all these shares. At least the shareholders would have some idea that this is an external force just manipulating for a profit. Not a failure of the company to live up to its expectations.
Sentiment: Strong Buy
Is it possible that you work for the hedge fund that is tanking this stock. I could be wrong and apologize if I am wrong, but what makes you think they are that smart because there is no reason for the stock to fall so fast unless someone is manipulating this stock. I am not selling and I like to find out who is. That information should be transparent if the blocks are huge as that is case for manipulation.
If they know something that is going to bring this stock down, that is insider information and they need to
have criminal charges brought against them, but I think it is a case of manipulation as you notice the $2-3 dollar a day drop - very consistent with manipulation and I believe one can do that if that have large long position in the money - with a week market they sell small blocks of shares with reduction in prices, those week market conditions will assure more sellers then buyers and price will erode. If someone like Warren Buffet had a strong buy in for price of $45.00 or higher it would defeat the puts and they would be getting this
stock at a bargain price. They will continue to pressure the downward price otherwise it will lose downside momentum and their puts will become worthless. I believe this will continue until July 17, and then price will move back up because there will be more buyers then sellers. SEC needs to investigate what is going on as stock is dropping much more then is justified with the fundamentals. This is a very strong company with great growth. They have orders going out for years and even if oil is weak, the utilities still need to produce power.
The questions is when will this stop. Obviously selling shares results is some loss, there will come a point when they either have no more shares to sell or selling will only equate to a break even position. They do not have to wait till expiration to cover their puts and take a profit, . My prediction 3 to 5 more days of this which will bring stock to low of 35 - 38 . Just MHO. GLTA.
When you control supply and demand, easy to do when market is weak as more sellers than buyers, one can drive down price of stock. That is exactly what they are doing. You create more selling than buying by dumping shares and dropping price as you dump shares. Easy to program computer to optimize price and volumes-that is what they do and computer program is doing the trading, which should not be allowed.
All this computerized trading needs to be stopped and they work with fractions of cents which the rest of us do not have that privilege.
The hedge fund is attacking this stock big time and trying to get stock as low as possible so huge July put position makes them large profits. If you had enough money you could defeat this but hedge fund has millions to fight attack with. Will not surprise me to see this at 35 to 40 within 1 week prior to July 17 and have to have massive amounts of money to manipulate stock to this lower position, but you will notice volume can tick up to few million shares a day which can drop price if one is continue selling. Only another hedge fund of Warren Buffet could put a stop to this and maybe they work together for mutual gain, so that will not happen.
All one has to do if they are allowed, not over certain limit is to buy all shares at $44 and options will trade worthless and hedge fund would lose great deal of money.
Don't agree, they have experience and lawyers to protect them selves from these unsubstantiated charges. They have been is this business for a long time and would not make a dumb mistake of unexpected liability.
What driving stock down is hedge fund attack to parley put profits coming to a head on July 17, when they may be in for a surprise .
I was absolutely wrong about energy association being the problem. The real problem is hedge fund is making a deliberate attempt to drive the price down so that they can make huge gain on their put positions.
If you can determine who purchased the July 17 puts for 47 & 44 you will know who is driving price down.
They purchased more then 60K puts.