Because this is temporary. Russia will re-negotiate from a tougher stance and rejoin. Coronavirus will abate, demand will return and a few more Shale Gas producers in the US will fall off the rails at the margin in the mean time.
Look at BHP/FMG/RIO a few years ago. They were smashed in 2016 on ore prices. They went ballistic and drove the others out. I remember arguing with an esteemed academic whilst doing my M.Fin who was criticising them for not diversifying (into what? Toasters?) and just banging out production under ever more efficient processes. All the marginal producers went to the wall and after a $40 2016 low RIO was trading as high as $105 before COVID-19.
Long-term WPL an excellent buy.
WPL Price at posting:
$26.38 Sentiment: Buy Disclosure: Held
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