Among the many business leaders who lament Encana's (NYSE:ECA) planned relocation to the U.S. is its former CEO Gwyn Morgan, who feels "deep hurt" that the company no longer feels it has a future in Alberta.
"Encana, when it came out about 20 years ago, was a shortened term for energy in Canada. Now you're taking Canada right out of it... a pretty big statement about where they think they're going," says Colin Cieszynski, chief market strategist at SIA Wealth Management.
"We are caught up in regulation... instead of delivering results and demonstrating Canada's environmental and technological leadership," says CIBC CEO Victor Dodig, and the Encana news only underscores the need to take action.
But the move is a diversion from deeper problems that have led to ECA's stock weakness ever since the Newfield deal, according to Raymond James analyst Amber Kanwar.
"The lack of a clear long-term strategy, elevated leverage metrics and lingering concerns regarding inventory length remain much more significant drivers of share price performance than the name and location of the corporate mailing address," Kanwar writes.
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