CHAR, I sold some on Monday with the news of Lukoil. Uncertainty is never a good thing in the stock market, particularly when it comes from halfway across the world. Sold some more today when CHAR came out with the PR that they were broadsided by Lukoils offer and didn't know about it until it came public on Monday. The problem with that is that CHAR's CEO is also the COO of Nelson. Unless he's turned off his cel phone and email and been constantly snorkeling in the Caribbean for the last two weeks, I don't see how he could not have known about the offer. I also emailed CHAR's IR dept today but no surprise, no response from there either.
While the stock is now by far the cheapest oil stock out there in terms of earnings, reserves, and prospects, I don't like the vibes I'm getting right now. Lukoil is stealing Nelson and maybe CHAR along with it while Conoco is more than happy to stay in the background and let the dirty russians take the heat. Lukoils acquisition of Nelson could stall, it appears they need 75% approval for it to happen and they have 65% now. If it fails, Char will likely shoot back up again. If it goes through, Char will continue to have a cloud hanging over them which is never a good thing either.
To buy or sell Char at these levels is the big question. If anyone is in the Caribbean, please be on the lookout for a guy with very wrinkled skin playing with the dolphins. His name is Gill (CEO of Char is Simon Gill), of course.
