05-25-2013, 09:10 PM
The reason for the sharp price drop might be daytrading activity:
- sell the partner news
- lower chance for a takeover
Furthermore, the news concided with a lot of option activity. In order to manipulate the call price the share price was manipulated on the expiration day.
In my opinion the cooperation with XOM is good news. Considering the low costprice for the E/A gas, a price will have been negotiated > USD 3/MCF. This means a large upfront cash paymentwill take place in the near future. I hope they will use a large chunk to smoke out a few shorts with a share buyback. They promised to do so in CC Q3/2011.
- sell the partner news
- lower chance for a takeover
Furthermore, the news concided with a lot of option activity. In order to manipulate the call price the share price was manipulated on the expiration day.
In my opinion the cooperation with XOM is good news. Considering the low costprice for the E/A gas, a price will have been negotiated > USD 3/MCF. This means a large upfront cash paymentwill take place in the near future. I hope they will use a large chunk to smoke out a few shorts with a share buyback. They promised to do so in CC Q3/2011.