08-14-2013, 03:23 AM
'tarulestheday' pid='27080' datel Wrote:Many IOC longs are their own worst enemy when it comes to earnings expectations. I have posted many times both here and on Yazoo that the SD deal is too large to wait or time for an earnings call. Many expected deal news or a major update on deal status but that was never going to happen. Nothing has changed other than the shorts pressuring the stock post-earnings (which they always do) and many longs helping them out by selling because of disappointment with the lack of news. The only negative that I took away was the tone did not indicate that the deal is close. I think we will be lucky to hear of the SD deal before the end of this year. As soon as the stock recovers in the $80s, I will be hedging for Sept and October. It would not surprise me if this stretches into 2014 now.
It's a mistake to read into Hession's tone, as he had no intention of tipping the public off on deal timing. I believe the deal is about to be closed very soon, and I believe its scope and terms will significantly exceed the market's expectations.