03-08-2013, 12:16 AM
Well the hedge fund guys are momentum players. They can really help to squeeze the shorts but if they sell on lack on news it can really crush the stock too.
The key here is that only around 20% of the float (so about 8-10 million shares) is really traded continuously. The big holders are not selling unless a material event occurs that causes them to reevaluate there position based on valuation and the IRR of the stock at that point. When that occurs new buyers will come in as well.
We really need a deal and then FID to solidify the stock and derisk the project to reduce the SEVERE discount it is trading at. When that occurs then the stock will be on a continuous rise as they are on the road to realize cash flow and find more hydrocarbons.
No delay on the deal....just do it!
The key here is that only around 20% of the float (so about 8-10 million shares) is really traded continuously. The big holders are not selling unless a material event occurs that causes them to reevaluate there position based on valuation and the IRR of the stock at that point. When that occurs new buyers will come in as well.
We really need a deal and then FID to solidify the stock and derisk the project to reduce the SEVERE discount it is trading at. When that occurs then the stock will be on a continuous rise as they are on the road to realize cash flow and find more hydrocarbons.
No delay on the deal....just do it!