Fine. They blew it on a pipe. But, how do we explain the fact that they have been making money all along, and now just because they are not making as much, investors cream the stock? I'm suggesting that, maybe, just maybe, investors may not be so smart after all. Look at Icahn and his $1B stake in CHK! Do I need to go further? I'm starting to believe that those who are patient and wait get rewarded. GL
Unless there is something hidden here, this is a perfect example of the lemmings running to their doom. With a 40% distribution and the fact that they ARE making money (not as much!), how can anybody sell at these prices, unless everybody knows the end of NGL to chapter 11. And besides, they nake their money on the spread, so drilling is not a factor.
GAAWWWD, HOW I LOVE THE STOCK MARKET!
So, if margins are down they should make a lower revenue and profit (if it means much here), not for the stock to go to zero. And that's where it seems to be going. Go figure!
The worst part of all this is that NGL's revenues are made mostly on the spread, and 1/3 of their business is in retail. So, why the big drop? go figure.
Use common sense!
The shorts are screaming: "gloom and doom!" because they see blood.
Now the common sense.
Icahn has a potful of shares and he sits on the BOD. Do you think he is thinking BK?
The insiders were buying at higher prices and are loaded with shares. You think they want to sell at a loss?
Venezuela is on its knees begging for oil production cuts. The Saudis are running a Govt deficit, Russia is also begging for price hikes and production cuts. Iran wants to sell. On and on...........
Do you suppose the supply glut will continue much longer? I doubt it.
Do you think the price of oil will keep going to zero? I doubt it.
If you stop and think, CHK is preparing to outlast the crisis, and that's what they have been doing all along, the latest is to restructure their debt and kick the can down the road with it. That's why the hiring of experts, if we can believe that.
I added @ 1.75. GLTA (of course except the shorts! lol)
Sentiment: Strong Buy
Would anyone here know what portion of HSBC's revenues are from China (including Hong Kong)? If this is a major part of their business, buying it would be like catching a falling knife IMO..
My take on all of this is that it no conincidence that the pps drops that much on ex-div day. There are many out there who sell as soon as they get the dividend because of the uncertainty on oil/energy. I will wait for $15 to add (if it gets there). I think the ND issue is not related to this drop, all in 1 day, and besides it's a very small part of the total revenues.
Never happen. They make their $$ on the spread. Actually lower oil prices helps them. I think we are having a lemmings rush and anything around $20 is a steal here.
Same here, so I added yesterday also. Market action appears to be emotional, so I bought into the panic. If you are buying for long term I think you will be rewarded well.
Sentiment: Strong Buy
Picked up some $15.85. I wish I had bought a bigger chunk at these prices. I will take a more conservative approach and wait.
You guys want a guess as to why CLMT is tanking? Hedge Funds who are long here are getting squeezed by their investors pulling out. This may be true for the whole energy sector, Stocks are going down, not because they are dogs, but out of necessity. i will be buying shortly, because others are in panic.
Sentiment: Strong Buy
Guys - It goes up. It goes down. You need to remember that they have been around for 100 years, and by now they have some good going: retail products, refineries, on and on. Just remember that they make their money on the SPREAD, NOT THE PRICE OF OIL. If it goes to 16 I will add. . Look around to the price of propane grill tanks. It's still at $15 and it was $18 a year ago. So, who is making money? Same for Calumet products. Stop listening to these analyst A/Hs. GLTA
Good for you. Picked up some about 2 weeks ago, but a bit high (18.90). SPH big disappointment. I really hoped the Inergy buy would bring them to $60, but I never added. Oh, well!. Win some, lose some.
Clean, you should not draw conclusions without any knowledge. If you have an acct w/Etrade go to analyst ratings and read. It rates CHK as a BUY with a 12 mo. target of $10. The other analysts rate it mostly as HOLD. They acknowledge the oil situation and think that they can weather the storm for the next 12-18 months. If the oversupply stays much longer then it could be a problem. GLTA