What's the reason for the 33% + fall in the CGG stock price today? Has reality finally kicked in?
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The good news CGG recovered most of what they lost yesterday. The bad news the price of oil dipped below $60 and it may continue to dip further. This will definitely hurt many service companies but it may hurt CGG more than others because it would be difficult to execute their restructuring plan under current market condition.
Even the French are jumping ship.
13D/A Filing Showed Bpifrance Participations SA Reduced Its Stake In The Company From ~2.07M Shares to ~536K Shares, Or 2.4%
Bpifrance Participations is a French public investment fund specializing in the business of equity financing via direct investments or fund of funds.
The previous rise may be happened because some investors believed that the price of oil will hit $80 in 2018 as CGG predicted in their restructuring plan and CGG is going to fully recover and becomes again a profitable company. This hope is dashed with the current drop in the price of oil and they are probably dumping their stocks. It appears that CGG hired Goldman Sachs to help them with this prediction.
What was the reason for previous rise of the stock price?
Now it sits the right place it belongs to.