When oil and gas companies sell assets to each other in private transactions, they will often open a data room where the acquirer’s team of engineers can look at the data and perform their due diligence. I find it strange that supposedly sophisticated institutional investors are comfortable with oil and gas stocks without being able to perform this level of due diligence.
Maybe I’m crazy but I think that institutional investors are making huge mistakes in the oil and gas sector.
Either they’re wrong or I’m wrong. Time will tell.
I believe that there are currently very high levels of deceptive stock promotion and many opportunities for short selling. The nice thing about the current situation is that institutional investors are involved and are lending out their shares.
