12-12-2014, 05:11 AM
Although I really don't like to do it, but if someone forced me to rationalize a one-day stock price reaction it would be that IOC is a long-term play:
- LNG plant is years away
- Whilst appraisal wells and recertification (on which Total payments rely) are closer, there is still time. Stock prices can move in seconds..
So there is not a lot of hurry getting onboard today in what is a rather weak sector (energy), UNLESS, they make a spectacular discovery. They made a discovery, two in fact, with a third still pending, but at this time they're not sufficiently spectacular to get enough new people in and this has led to some relief by the shorts.
- LNG plant is years away
- Whilst appraisal wells and recertification (on which Total payments rely) are closer, there is still time. Stock prices can move in seconds..
So there is not a lot of hurry getting onboard today in what is a rather weak sector (energy), UNLESS, they make a spectacular discovery. They made a discovery, two in fact, with a third still pending, but at this time they're not sufficiently spectacular to get enough new people in and this has led to some relief by the shorts.