Recently ConocoPhilips(COP) announced that it was going to walk-away from its investment in Venezuela. President Chavez had indicated that it was going to take-over COP’s operations in the Orinoco Valley. Rather than waste time with negotiating with a tinpot dictator and get pennies on the dollar, COP just decided to walk away.
It’ll probably just write off the entire $4.5 Billion as a loss. For some reason, the stock hasn’t reacted badly to this news at all. Today it gapped up and is trading at an all time high of $80.62!
Pretty interesting. If a loss of $5 Billion and future revenue won’t drop a stock, I wonder what will?
The stock has nearly quadrupled in the past 5 years. I was hoping bad news would drop it a little bit and provide a good entry point.