VAL - stevehemingway/trading GitHub Wiki

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tags: potential/short, analyst/praetorian-capital, thesis/spx-inclusion

Offshore driller $VAL, is getting added to the S&P 400 (we’re long piles of shares, in the interest of disclosure). Of course, we have no idea who buys the S&P 400 and have literally never heard of a PM who trades that asset, but there’s still going to be millions of shares to buy on the inclusion.

It only took 23 months, but suddenly a bunch of ESG bros, are going to be getting a heaping helping of offshore drilling (whether they like it or not).

Many of us have wondered what it will take for energy names to get a multiple—as most PMs have ESG mandates. The answer may turn out to be that passive is the solution to closing this gap.

They just buy anything with the right market cap. Could 10-30% of each energy company’s float disappear into the vortex of passive and lead to a re-rating??