RE: Up5 Dec 2024 16:35
Let's all calm down and get a grip. The valuation of Tullow is so low that it doesn't take much for the share to move 10%. We've seen that as recently as yesterday. So today's share price movement doesn't really tell us much.
So what do we know .... Rahul is leaving and why is the million dollar question. If Tullow were aware of bad news they'd have to notify the markets. News always leaks and we wouldn't of seen a rise of 0f 20% over the past 2 days before his announcement. So I think that it is unlikely there is major bad news, however there is always the chance of a 7am RNS tomorrow.
There is however a much greater possibility that the Ghana tax arbitration decision has been pushed into 2025, so we're ending the year with no Kenya decision, no tax arbitration decision, Jubilee production under the 100k promised, FCF revised downwards and very dismal share price in the low 20's. A lot on here have no faith in Rahul and see no way forward to increase the share price. So quite possible some of the big holders have had enough too and suggested he moves on. As his stock options in 2025 are at a much higher price than the current share price, there isn't really a lot of reason for Rahul to resist. He can move on out of "his own choice" and get another position somewhere else.
We'll see what happens, however if there was indeed bad news about to break we'd be well into the teens already. That you can be sure of. Again this is another case of poor communication by Tullow, as creates more uncertainty just when the share price was gaining some upward momentum.
PS: There is also an outside chance that Rahul has had another job offer, which will be announced in the near future. We don't know, however we do know that you don't resign from a role like this unless you're terminally ill, forced out or have been offered another position somewhere else.
Time will tell.....
Sign In
Follow the stocks
