I think there is big money moving this issue. Once the ball got rolling, the snowball grows. Fear feeds on fear.... and margin calls feed more selling.
Take a breath folks, Not just KMI, but all the pipelines and MLP energy stocks are getting killed. In fact, all commodity stocks are taking a hit. I've got some FCX that's down more than KMI, so don't think this issue is alone. Check out ABX CHK SWN is you wanna see some more losses, if it will make you feel better. Many commodity related issues down 50% and more.
I'll say this. early in the year. there was an assumption that some big investor had bought Jan 2017 $50 call options and sold an equal number of the same expiration $30 puts. It was a very large number of both puts and calls traded, this presumption would have cost the trader about a net $1 per share.... and in fact many many million dollars.
I believed the hype, or perhaps not hype but just honest reporting, I can't say. I believe now is that the trades were not as reported, but only assumed to be traded as it might have appeared... as it is sometimes hard to know if a trade is really a buy or a sell. I believe that the $50 calls were sold, and the $30 puts were purchased. In hindsight, this trade makes more sense. I believe that big money is pushing around this stock.
So you think that just because the price of the commodity products goes down that energy will somehow stop moving through pipes (rails boats or otherwise ?).
On the contrary, the lower the price, the higher the demand ... no ? Isn't that how it works ?
Likely flow of energy products will increase unless there is some bad recession.
That is a good argument except for the fact that recyclable copper has supplied about 50% of the total market (give or take a few percent) for the last 20 years.
That didn't stop the price of copper averaging more than $3 the last 10 years.
FCX proven copper reserves alone are more than 100 billion pounds. If you calculate $1 profit after mining and marketing costs. The company is worth $100B dollars without adding in all the other precious metals.
C'mon folks, very undervalued here.
ahh yes, we make up the rules as we go along ?
If that were to be the case, the options market would work differently. You didn't buy CELG options .
You can't have you cake and it it too.
perhaps shareholders will vote against it ?
If you didn't know it before, buying far outta the money call options is risky.
I've been trading biotech for 20 years now, and I've seen it all.
Why ? ... evidently for some promising future product. So I suppose CELG thinks they know something that Wall St doesn't know. I suppose both companies know what they are doing here.
That said, I'm still very skeptical off the previous RCPT buyout offer claims. If I remember correctly, as the story went.... Receptos management claimed to not be willing to accept any offers under $350, so that turned out to be totally bogus... no ?
I can imagine that might influence a speculator to buy a $250 call option.
I played it another way, being skeptical as I am. I sold Dec. $100 put options for $5.5. So I took much less risk than you, and made much more money.
Like I said, learn something here, you can start out by not being so greedy. Speculation is a loosing game most of the time.
I'm seeing that option trading at about $40. So you were expecting a company that is expected to loose about $6 per share in 2016 to trade over $290.
Why not just buy a GILD CELG AMGN or BIIB ?
Sorry I'm not too sympathetic, but learn something from this.
That makes you a rookie investor in love with your stock, watch that share price drop to $100 and your love affair might come to an end. There are 50 other promising biotech stocks out there with great pipelines also.
If rumor is true, this stock easy over $200, if false.... who knows. The share price could fall $125 to $60. It appears to be a promising pipeline, but years away from market.
Evidence is history based, due to the fact that the SEC requires M & A offers to be made public when an offer includes a premium. Do your DD folks.
I think this company is very legitimate, and I don't doubt that some other biotech companies would be interested in merging. That said, there is NO evidence of any offers.... by anyone .... PERIOD !
I'm pretty sure this will not end well for some stock buyers.
It's not the job of the company to fend off false rumors of this type. However, if the offers were true, it would be in the best interest of the shareholders if the so called offers were made public.
Really, three companies made legitimate offers for the company and not one report from RCPT or the suitors ?
Come on folks.
I'm trading this stock, just because it's easy to jump in and out and make some coin.
However, as to the Takeout rumors, I have serious doubts. Googling time after time, the only reference I can find is and activist shareholder is the one making the claims, that is quite self serving as we have seen from other activist shareholders of other companies. Any serious offer from any other company needs to be made public. That is material information, and shareholders have a right to know, especially offers of the magnitude this activist shareholder is claiming. If somebody can point to something more concrete, I'm all ears.
In fact, I would contend that an activist investor with that kind of information better be careful about his/her trading or it it would could well be viewed as insider information since Receptos never made those offers public information.
I have serious doubts about these rumors, but I'll trade interday again tomorrow.