Market's view on Energean Oil & Gas
Published on April 2024
- There are warnings about the stock being currently risky with potential for sudden shocks despite good dividends.
- Questions are raised about the truth of rumours predicting a dividend doubling this year.
- The stock is considered too risky due to unpredictable shocks.
- Observations include a decline in stock price and speculations regarding the influence of high debt levels and external economic factors like US bond rates on stock performance.
- Heavy shorting earlier in the year and geopolitical tensions in the Middle East are identified as negative influences on the stock, although some watchers adopt a strategy of buying during dips.
- Questions about whether current political situations, specifically war, are restraining stock growth.
- Positive financial results from Energean plc for 2023 are highlighted, noting significant increases in production and profit, a strong balance sheet, and an attractive valuation despite geopolitical risks.
- An article mistakenly reporting a failed operational outcome did not impact the stock price, indicating possible pre-pricing of such news.
- The stock is recognized for becoming stronger on charts and its value due to dividend payments.
- Confusion is expressed regarding the market’s poor reception to good financial performance, speculating if geopolitical factors are the sole cause.
- There is a mention of a significant discussion on value investors clubs praising the company.
- Surprise is noted that stock prices remained stable after a failed drone attack.
- Importance of Energean to Israel’s energy needs is emphasized by a AAA fund manager, despite risks to production due to regional conflicts.
- Impact of short selling on stock prices and expectations of a rebound on forthcoming trading updates are discussed.
- Queries about why regional conflicts affect Energean given its Mediterranean location, suggesting any global rise in oil/gas prices should benefit the company.
- The impact of operational changes by major industry players on the stock and its appeal due to dividend income are discussed.