There would have been plenty of brokers telling their clients to perhaps sell their LNG shares because of the negativity surrounding energy stocks . Brokers make money by buying and selling shares for clients. It would have been an easy sale for them to convince clients to sell. They had the oil price to back up their recommendation and constant press about projects that have been delayed etc etc.
When the sale has been executed there is now money in the clients account to buy something else. The broker gets 2 bites of the cherry. The brokerage for the sale and the brokerage for the new purchase. Brokers generally do not like clients who buy and hold. They want turnover. That provides them with their income. They make no money if I client is not actively buying and selling. Remember brokers are all on commission.
When the dust settles they will then be suggesting their clients to revisit LNG and in this case because of circumstances their advise would have been accurate because they can now buy back in at lower prices.
That doesn't always work out that way, but in this instance it has been a win win for brokers.
Their line could well be, we got you out at higher prices, but I believe the selling has been over done and it could be a good time to get you back in. So they sell them out of the other stock they bought when they sold LNG and now use that money to re enter at a reduced cost. Everyone is happy.
LNG Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
