Comstock Resources Inc (NYSE: CRK) stock was shot up by a margin of 2.54% to settle at $6.05 eventually.
The Chief financial officer of Comstock Resources Inc (NYSE: CRK) holds a strong stand that the recent freeze is a financial windfall, a statement that sparks a lot of mixed reactions. Business analysts have been quick to refer to some of the basic economic theories explaining the prevailing conditions.
Could such events be halted?
All of them seem to agree that it is possible to bring to a stop such events. The analysts think that the right thing to do is give room to everyone to air his or her opinion, saying that the leader did the right thing expressing his thoughts.
Most competitors happen to be pretty quick to take advantage of great opportunities. For example, a market sentiment outlining the possibility of making large amounts of money could trigger them to jump into the scene. Such a sentiment eventually results in a drop in the commodity’s price.
The nature of the free markets is rather intriguing in the making. One common case scenario is the attribute where people experience excess market. One outstanding observer seems rather pessimistic and unaccommodating to the markets. He believes that such markets could be a terrible choice in most instances.
How do matters look like during free markets?
Where do matters get messy in the whole thing? One notable point happens to be the possibility of some above-average profits and prices that prevail for quite some time. However, it is important to recognize the essence of the free markets when dealing with excess profits.
It could be reasonable for anyone to speak about the freeze as a one-time event. Such a mindset would make it almost impossible for most people/businesses to see opportunity in the next big freeze.
Comstock reveals that it had been working on increasing its production, hoping that the natural gas prices would move higher. The company ended up benefiting from the freeze. Comstock wasn’t adversely affected by the winter challenges like the rest of the Texas producers and utilities.