I agree this should be the typical classic game of setting expection and beating it.
I am not sure how wall streets will react this. They may dump on good news. I have some shares, would like to buy more near low $7 too.
The link doesn't work. I googled it, and found the news here. It's interesting that a jewelry retailer in China bought the Texas energy company. Hopefully, some of them will pay good money to buy assets from PWE too.
The following is the news
A Chinese gold retailer agreed to acquire a Texas-based oil-and-gas producer for at least $665 million as part of a strategy to diversify away from processing gold jewelry.
Goldleaf Jewelry Co. will finance the deal through a private placement that is expected to raise as much #$%$69 billion yuan ($937.9 million) from no more than 10 investors, it said Monday in a statement filed with the Shenzhen stock exchange. The company would hold 95% of Texas-based ERG Resources LLC after the transaction.
ERG Chief Financial Officer Kelly Plato said the deal would provide funds for growth and that the company would retain current management. He declined to comment on whether the deal would require U.S. government approval, a step necessary only if the transaction would affect national security.
Closely held ERG's most significant assets are oil-producing leases in Santa Barbara County, Calif. The Houston-based company also been active along the Gulf of Mexico coast in Texas and Louisiana but sold off most of its assets there in 2011. The deal includes some offshore oil fields in shallow waters of the gulf.
By gaining a foothold in California and Texas oil fields, Goldleaf would diversify from "overly focusing" on jewelry, the company said.
The deal comes as U.S. production of crude oil and shale gas is surging, reducing U.S. dependence on foreign oil. That has put pressure on prices in recent years, although oil demand is recovering because of an uptick in the global economy.
Chinese companies, led by the state-controlled entities, have ratcheted up spending on energy in recent years. Last year Chinese companies acquired about $37.4 billion in oil and gas holdings
Exactly, the article expects triples in 2018. I think if the management can deliver what they have planed, cut cost, sell assets at reasonable price and improve capital efficiency. The stock could be up 50% in 12 months, and double in 2 years.
The current high NG price, stable oil price and low interest rate environment is quite good for PWE to turn around.
With the quarterly update, and Q4 average price for the gas and oil. I think some analysts could figure out the revenue number and approximately income. The good news is that gas price is higher than many expected. PWE should be able to beat the income number.
Agree the fundamental for PWE should be better than a couple of months back when NG price was around $2.x. The share price going down seems to have no reason other than some funds price manipulation or they may be able to see the data that we cannot see.
PWE should come out say some positive thing. These two days some long might have sold their positions due for the stop out orders.
Sentiment: Strong Buy
Just look at the PB from yahoo JCP PB is 0.94 based on today's stock price(http://finance.yahoo.com/q/ks?s=JCP+Key+Statistics).
Compare to C. C only has 0.84 PB ratio. When C and BAC were at difficult time, like year 2009-2011.
Their PB ratio is only 0.3-0.4. So, JCP PB at 0.94 is not attractive enough even it will not BK because
upper is limited due the tough retail competition.
The sales data from Target and Walmart all indicated that large number of iPads sold in Black Friday, around 20% of total revenue in Black Friday. Google N7 is also doing OK with aggressive price. Kindle Fire will be big money loss business for Amazon. Soon we will see big discount from Amazon.
Last Friday a lot of shares were sold by insiders. It's just matter of time Amazon will bust.
These days best buy, Walmart, Target and many retailers are more competitive now because Amazon lost its tax advantage, and many retailers know how to compete with Amazon.
FB year over year revenue growth is 60%. Amazon year over year revenue growth is only 24% last quarter.
Assume AMZN didn't do all investment, just think its positive cash flow is net income.
How much did AMZN make in the last Q and last 12 months ?
Agree, today, it is up due to option expiration date(max pain) is $295-$300. The big market correction is still not done yet. The real buyers will not come until seeing it's traded near 200 DMA.
There is no buyer at this level. Only some short covering. Keep in mind the overall short ration is not that high.
So, the support is very limited when it is traded above $280 level.
Seemsl ike it even cannot hold above $297 today. Very bad indicator.
Longs profit will be wiped out quite a lot when it goes to $260 level.
AMZN due for big correction for long time along with many bubble stocks. The big market also is due for some more serious correction(say 7-10%). No fund managers want to be the last bag holders. We will it go down to $260 level, then come back to $280. $300 will be a big resistant.
If you look at this firm history, such as target price on Apple, you know this is BS.
Look at its previous 2 quarter ER actions. It's more like open at $298-$299, and close at around $280 or below, then continue slide to $260 range.
Keep in mind next week the insider locking windown will be open. Some insiders will start selling. That's the way they get paid partically. Amazon spend quite a lot on stock options because itself cannot make much money from its business.
I think next week it will first go to $280s, then come back around $290 before earning. Then drop $20-$30 after ER.