I just bot puts on these, the CFTC and the FERC have just announced charges of gas market manipulation against these guys. They have been conducting an ongoing investigation for awhile now and have all the evidence. The fines are not what will hurt this company, it is the MAJOR class action suits to follow. These guys artificially brought the biggest price index in Texas much lower than it would have been. A large portion of gas in the state gets priced off of this index and now everyone from producers to royalty owners and the state itself was grossly underpaid for months on this manipulation. Were talking in the billions!!
HOLY SHIT!! These guys are FUCKED to the max! The FERC has taped conversations with the traders and senior management in the manipulation scheme, talking in details. Here it is: http://www.ferc.gov/EventCalendar/Files/20070726084254-IN06-3-002.pdf For anyone who isn't aware, a large portion of natural gas in the state of texas gets priced off of the Houston Ship Channel index. This opens the doors to multi-billion dollar litigation from many groups along the supply chain and other marketers that had the paper basis buy side. This scheme was as bad if not worse than the false reporting that we've read about over the last several years.
WOW, did you see that down movement brother? Thank GOD i got it way before it happened. GREAT GREAT call. Seriously this is what ET should be all about. Thumbs up for Comanche
They are finally realizing the risks and likelyhood of multi-billion $$ suits and hitting this thing. Down over 5% today so far! **I am biased downward and hold puts**
I'm in a quandry ... think I'll sell half for a double if I can get a bid... The oct 35s were .05/.20 for months, I wish I had bought more ... pfft