Quote:
Originally Posted by Dean2
Would appear the market feels the same way as I do about the merger. Husky up to exchange value of shares, Cenovus is off 12% so far this morning. To be fair WTI is off .$1.48 and WCS is down 90 cents, the overall TSX is off 212 points or 1.3%. All that considered, if the Cenovuus deal was considered really strong, it should be bucking the trend or at least holding even. I am inclined to believe the Cenovus shares will continue to suffer in the foreseeable future, Canadian Oil and Gas has become really unpopular due to Federal policies and the massive anti oil media campaign.
|
Yeah ubet, the market was obviously not impressed despite the overall brutal day for oil prices on Libya/Covid and stocks in general. Crappy timing for the announcement just ahead of a pretty steep selloff. These guys will have to prove they can do a decent job on the merger.
Oil has got to be the most hated sector in the world right now. ESG and the left wing have got anyone and everyone dumping anything oil related. If you want to be in it you want to try and own the best of the bunch for sure and be prepared for a long slog I think. Not something to be overweight in unless you love a lot of pain, suffering and sleepless nights.
On the plus side shale in the States is hurting here at under $40 Wti. A Biden win may put further hurt on US producers with the "shut down oil" policies of the Dems. Maybe more upside on the CDN nat gas side if shale production starts to really falter.