Continental Resources (NYSE: CLR) was founded in 1967 and is located in Oklahoma City, Oklahoma. They have recently halted production in North Dakota and shut down many of its own rigs in North Dakota. It appears that CLR was exposed to prices in the oil market because it elected not to hedge future production a plan within the energy industry, with derivative contracts.
The current trading in CLR has been at the $13.00/talk range. Throughout the second half of 2019 and into ancient 2020, the trading scope stayed between $30.00/discuss and $40.00/discuss for the most part and did not dip below $20.00/talk until March 2020.
Continental Resources, Inc. (Symbol: CLR) explores For, develops, and produces crude oil and natural gas properties primarily in the northwest, south, and east areas of the United States. The business sells its petroleum and natural gas production to gas gathering, crude petroleum refining companies, and energy marketing companies and processing businesses. As of December 31, 2019, its proved reserves were 1,619 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 707 MMBoe.
Financial Advisors In Trouble Over CLR Sales
Haselkorn & Thibaut (www.investmentfraudlawyers.com) investigating possible sales practice violations by financial advisors who have been recommending CLR and similar energy sector-related investments into main road traders.
For investors, this can be a blow as these are the types by financial advisors to customers who were looking for earnings in their own portfolios (often retirees or similarly conservative investors). This was likely a recommendation that was anticipated to be low volatility and quite conservative; now investors are faced with substantial losses as a result of a degree of risk to their original investment leader, which was probably never adequately disclosed (if it was revealed whatsoever ) by their own financial advisors.
As some strategies are leveraged in the hopes of raising potential yields, they also raised the level of danger, and some investors might not have been informed of those possible dangers as well. Although Financial advisors may claim that these were market events, the reality is that these are dangers to those experienced in the crisis. These dangers were material risks that have to have been disclosed to customers before recommending these investments or as part of a portfolio or investment strategy.
Problems With MLPS
Oil, gasoline, and energy linked Master Limited Partnerships (“MLPs”) have been promoted by financial advisors in the last few years as an attractive source of dividend income in an otherwise low-interest-rate environment. It is important to note that in making such recommendations to investors, a fair and balanced disclosure of material risks is needed by the laws, rules, and regulations in the securities industry. In addition to the dangers experienced in 2008-2009 mentioned above, there was once more in 2014-2015 volatility in the energy business and a precipitous decline in the price of oil at that moment, the result of which saw the value of several MLPs (in addition to high-yield or junk bonds, stocks, and other securities) tied to the energy industry also appreciably decrease in value.
Many MLP issuers are currently teetering on the verge of insolvency, and a record amount of energy and oil firms (many of these structured as MLPs) filed for bankruptcy in the 2015 – 2016 period frame. Were some of these previous events and risks such as the background of volatility, reduction, bankruptcies, the portion of the financial adviser’s pitch in recommending these securities? Not, in many cases, these discussions are non-existent, along with the pitch is restricted simply to the income stream.
Financial offered many of these investment advisors without risk disclosures that are appropriate, as these are thought to be very risky and intricate securities. In cases where these were advocated to retirees or comparable conservative income-seeking investors, there’s the potential for sales practice abuse because of misrepresentations, but more often because of omissions of material fact, or because of a lack of proper oversight.
Investors Seeking to Recover CLR Losses
A FINRA arbitration client dispute, some investors permit them to possibly recover their investment losses and to bring a claim. These consumer disputes typically involve only paper discovery and no depositions, and they’re generally faster and more efficient compared to traditional court lawsuits, as they provide a private forum to resolve disputes faster and efficiently.
Haselkorn and Thibaut has offices in Palm Beach, Florida, North Carolina, on Park Avenue in New York, in Addition to in Phoenix, Arizona, and Cary. The two partners have nearly 45 decades of expertise. Call today for more information at 888-628-5590.
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.