Tagged: energy sector

The Audience

“I’m going to write a four-letter word meaning intercourse,” my speech-class colleague Jim announced, striding to the chalk board. It was 1986.

Stunned, the rest of us stared open-mouthed.  The chalk clicked.  Jim stepped back and with a flourish gestured at what he’d written.

“Talk,” he declared.

Freshman college speech burned into my mind the importance of knowing your audience.  Seated there in the IR chair, who’s yours?

As you tee up an answer, let me tell you a story. It must’ve been a long last Sunday at Goldman Sachs.  Late Oct 26, with fanfare and after machinating immense quantities of data or perhaps just looking at sliding oil prices since August, the firm pronounced a new view for the energy sector. Oil, it said, would be priced lower than previously thought.

I’m poking fun, yet it was anything but for many in the energy sector Monday as the Goldman Tsunami appeared to crash over its investing audience, driving some energy and chemicals companies down 4-5% on a flat market day.

Okay, stop for a moment. It’s not your sector so you want to move on to your Twitter feed. Right? Stay put.  The same may apply to you and your peers.

Back to our story, the conclusion one would infer is that having waited for the vaunted Wall Street firm to speak, investors, teeth gnashing, doused themselves with ashes, donned sackcloth, and punched out of petroleum. (more…)