Morgan Stanley Suggests Shorting CNOOC
Early Wednesday morning, CFA and Morgan Stanley analyst Andy Meng released a note in which he added CNOOC (NYSE: CEO) to the Short Research Tactical Idea list.
Meng believes that over the next 60 days shares of CNOOC will fall in "absolute terms." He says that it is 60 to 70 percent likely that the company will report a year-over-year earnings decline for the first half of 2014 due to limited production growth and increased operational costs.
This, however, has not changed Meng's long-term view on the stock, in which he sees benefits from new project launches in the fourth quarter of 2014 and the first quarter of 2015. With this is mind, Meng has maintained an Overweight rating on CNOOC.
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