Sabine Oil & Gas Corp (OTCMKTS:SOGC) bounced back to $0.14 in early morning trade on Thursday’s trading session only to close back in red. The stock prices declined more than 24% to close at $0.0910 after 1.71 million shares exchanged hands yesterday.
Evidently, investors considered the latest decline all the way down to $0.043 as a golden opportunity to buy cheap SOGC stock. The stock began with a sizeable bounce and took the pace and ended up declining $0.0290 before the final bell caught it.
In hindsight, the early morning gain was probably not tough to predict as it is only natural for any stock price to surge if it becomes over-sold. However, it was also evident that there were serious other reasons to doubt that the rise would continue for much longer. As a matter of fact, it gave away a major part of the previous day gains.
As the old quote about the stock market stated that even a dead cat has ability to bounce only if it is thrown from high enough. Sadly, Sabine Oil & Gas Corp (OTCMKTS:SOGC) current state of financial and charts disclose that it many has lot of similarities with the proverbial deceased feline.
To state that the oil decline hasn’t been good for Sabine Oil & Gas is an understatement if there ever was one. It is better to include the delisting from NYSE platform to the horrible losses Sabine Oil & Gas keeps experiencing in the numerous reasons for poor performance.
In the near future, the said state of the company can change only if there is a bounce back in oil prices, which as of now is not evident. Instead of bouncing back, the oil prices are making new lows every day and it doesn’t seem a pretty picture for oil and Gas Company.