Originally Posted by
Hoop
Chalice
Energy producers all around the world are accumulating good revenue and are cash richer...but their share prices are also off their highs for the year, and are "perceived" now to be cheap. There seems to be a rather large risk premium built in these energy producing stock share prices at the moment for some reason.
NZO is no exemption....yes, local factors (exercised options) don't help.
I am not sure at what degree the local factors has influenced the NZO share price, or whether it is more to do with the shift of available money away from the Global energy sector market causing an overall lack of momentum everywhere incl NZO.
Drone
Personally, I think takeover activity just adds extra risk which could in the future turn out to be unwise... taking in the consideration of a worsening hostile economic environment. Bank loans to oil companies normally carry high risk status, and in this current environment those high risk loans could be expensive. E.g PPP example,,,and that was when credit was easy and in a less risk adverse environment.
There are many more worse options than money in the bank (safe?) earning 8 to 10% interest. Can't think of many better options at the moment..I have the feeling, neither can the NZO management.