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Published on: 8/25/2002
Last Visited: 8/25/2002
"It was appropriate for the company to provide some kind of information to the market," said Andy Gustajtis, an analyst with Jennings Capital in Toronto."When things begin to react the way they were with Canadian Superior with no news, then the rumour mill starts and people begin speculating."
Canadian Superior's press release said it was "at a loss to explain the recent volatility in the company's stock price other than to state that it may stem from a recent press release by ChevronTexaco Corp. announcing the abandonment of their ... well located offshore Nova Scotia."
The Calgary-based firm also said that it "does not believe that the company's current stock price properly reflects the underlying value of the company."It noted that its offshore drilling was continuing at depths of 4,544 metres to evaluate prospects.
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Mr. Gustajtis said recent East Coast misfires may have some investors nervous.
He said the market seemed to realize yesterday it had overreacted in the case of Canadian Superior.
"The bearing of the ChevronTexaco well is, at best, pretty remote in terms of its consequences for [Canadian Superior]."
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