A comment like this is probably why ERF sold off yesterday. Obviously there was a misunderstanding in the language and how it was originally titled. I see they have since reworded the original article's heading as well. Don't like to see my stocks fall but I did take advantage of the sale and doubled down yesterday.
The dividend program is not being cut. Only the method of paying the dividend is changing. Only cash now. Which is a sign of strength. No more dilution.
Those options look like they were traded on the bid. That means it's more likely that someone sold them short, expecting them to expire worthless.
The dividend was cut, now the dividend programs are being cut. It may be all positive for long term but short term this bad information. I personally feel if your in this stock for the long haul its great to be in, but short term I do not and I would suggest to sell like me
Sentiment: Strong Sell
Look's like they spent about 15 grand to control almost 150 thousand shares until Oct, 18th. If ERF pops back to $22 bucks before expiration they make a cool $148+ grand in just a few weeks. I suppose if ERF doesn't bounce back soon they will probably start to cover before they expire.
The word 'sustainability' has the ring of environmentalism. Most oil investors dislike the word's connotation. Isn't it time we use another word. 'Longevity' maybe?
Lets see in the last hour how the triple witching goes. I would suspect people will cover their bets on OIL an GAS. Both seem to be clawing backs from the lows. Tremendous buying op.
Since their balance sheet had improved so much with plans & Strategy they no longer had to let shareholders buy the stock at 5% discount to market. Now Balance sheet even better they no longer desire to dilute the # shares but pay cash rather that stock dividends. Future plans to now even buy back shares or increase cash dividend--- ALL POSITIVE FOR STOCK
Think you may be right ivboy. Agree Mr_ortooglo, less dilution and continued cash dividends, at least, for those of us who hold ERF in our IRAs.
Me too Dunes. I have mine in IRA's as well stockhoncho. Maybe part of the sell off comes from folks purging ERF from their taxable accounts and/or folks just selling because "something that sounds negative happened."
This has been a 26% + sell off from its recent highs. I understand that most of the devaluation correlates with energy prices but ERF is almost 2x. Hard to stomach - so I understand what management did with the DRIP. Had to close my eyes and plug my nose but I bought more.
Dunes, The only negative that I can see is that the US holders in a taxable account will now have to pay the Foreign tax like they did without the drip plan. In a retirement account it makes no difference. I think it will be a one or two day sell off at the most. Honcho
to sell shares in the DRIP based on their current outlook. Why in the hell would this sell off so sharply? Who would sell based on this message from the co? Is this a natural seller with size or traders that are taking advantage of a confusing press release?
"The sustainability of our business has improved dramatically over the past two years"
This isn't a rock solid message from ERF leaving a few questions about ERF's future that need to be cleared up. Hopefully the next step will be a dividend increase and that will bump the stock price dramatically.
Suspending the Stock Dividend Program and Suspending the DRIP Program are two different things, obviously not clear by whoever wrote that very misleading headline. The company should send out a correction pronto!