Before I "comment", you should be aware that we've been on MHR for a long time and hold a rather sizable position in the common and the Pr-C...
So here's my thoughts on today's announcements:
With the heavy dilution and constant acquisitions and ongoing issuance of very high cost preferred debt and "revenues" that are sub-par (at best) and the market's response to todays announcements coupled with yesterdays price collapse, MHR is starting to "look" and "feel" like another company we once owned (SMBL) that was started and operated by another billionaire who had made his fortune selling a "similar" business. Living on one success from the past, they have yet to prove that lightning can strike twice in the same place and those who have been in since the early days have watched their investments continue to dilute and underperform.
We're gonna hold our MHR's for now, but we may be revising our price targets to the downside shortly as we re-evaluate our investment. We're very disappointed and uncomfortable with today's announcements.
Yeah, I guess I was a little underwhelmed by the CC today...not sure exactly why. Gee, they still remain on target for goals set out for the year, so I'm not disappointed with that. Perhaps it was the compensation (stk. options) given to mgmt....but you need to grease these guys' palms to attract them into the fold. Guess I was hoping for a little closer to a break-even this time. Maybe it was the lack of excitement I felt with their presentation with less than the usual good news and hype we are accustomed to hearing in these sessions.
But make no mistake...I'm still long this stock....VERY long!
MHR dropped from 7.70 to 5 prior to the earnings today. This was market driven and not MHR driven. Look at CRR, GEOI, WLL, BEXP in the same time period. It was to bad that earnings came out today. The shorts piled on as one of the few they could. What has changed in the story from yesterday or from when the stock was at $7.70? As we all know MHR is in the best 3 shale plays in the US. The land alone is worth more than the current share price. In a few weeks the PPS will be back over $6 and takeover talk will rule the day again.