08-10-2013, 03:50 AM
syd- Some things I agree with and some not. The reason for the "bidding process" was to not allow the companies to delay negotiations as you say. The sooner they get going, the sooner the LNG can come to market. These companies (XOM) have specific projections of supply and demand and need the revenue to grow their dividends. So XOM need IOC as well not just the other way around.
The market thinks years ahead, not at the present moment. That is why IOC is valued at 4 billion now. After a deal IOC will be valued based on the deal and the projected discounted cash flows, aside from future prospects. Future prospects will grow the company more. I personally believe that we are a coiled spring.
The market thinks years ahead, not at the present moment. That is why IOC is valued at 4 billion now. After a deal IOC will be valued based on the deal and the projected discounted cash flows, aside from future prospects. Future prospects will grow the company more. I personally believe that we are a coiled spring.