Stock price when the opinion was issued
Here, he can look at support on the chart and know that it's real because we know about tariffs and the merger with VRN. He needs a bounce off support; if it doesn't bounce, and goes below support, then you have a problem and don't want to own. If it does bounce, then you have a target of between $11-12.
Concerns about tariffs are already built into the price, and that's why it's down.
Has looked at this for a long time. Started a new position due to selloff on the merger with VRN. Really likes Canadian oil & gas long term, tariffs notwithstanding.
Fly in the ointment is our new prime minister, Mr. Carney, who continues to be anti-oil and -gas. Paradoxical to him, given Canada's absolutely superb endowment of oil & gas resources and related technology. Perplexing that political leadership of Canada doesn't understand the energy patch business case when we have lots to sell to lots of willing partners.
He likes the WCP-Veren deal. Both were already decent companies, but together will enjoy synergy from cost savings. It will become the 4th-largest light oil producer in Canada. Management knows what it's doing, valuation good. Bigger companies here tend to enjoy a multiple increase. Veren shareholder will receive the WCP dividend, a big increase for them. The combined company will do pretty well.
Broke below the March low, an indication that it's going lower. Barring a dramatic reversal in the price of natural gas, which it's tilted more towards, it's probing lower. Going back on a 3-year chart, no place to hang your hat yet.
Lots of damage in last 2 days. There's a lot of value there, but you have to wait to see where to step in. All of energy will be wait and see.
Merger could be really accretive, better together. Nice dividend. Scale could really help them both. He hasn't yet seen the terms of the deal.