I entered TLM at $3.78 for many reasons. Firstly, I was
watching this stock for a while and thought I had bought it at the bottom.
Unfortunately, as the day progressed I found out that I was wrong as the price
started to drop until $3.49. I thought the stock was undervalued and was being
sold based on bad news of oil prices falling. I also found out that billionaire
Carl Icahn had positions averaging around $11 per share.
A few days later the stock moves up on news of a possible
buyout. The price jumped from $3.70 to around $5 just based on rumors of a
buyout. That shows you how much the media has an influence on the stock price
of either going up or going down. Furthermore, once the public found out that
it was Repsol that approached TLM again, the price started to decrease from
around $5 at open to $4.27 by close. This is because Repsol approached TLM
earlier during the year but no deal was reached. The next day the price was floating
at $5, which was very tempting to sell knowing that the deal might not workout
again. I was able to resist my urge to sell because I understood that this time
the environment was different with declining oil prices forcing a deal is most
likely. The following day I woke up and saw the stock trading at $7.50 on news
that Repsol offered $8 US per share.
I think SandRidge Energy Inc (NYSE:SD) and Transocean LTD
(NYSE:RIG) are undervalued and will easily move up quickly on positive news
similar to TLM.
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