for the deal to go through. pretty simple really.
I bought this cheap and I know it. I was interested in taking the gains just getting them into a solid company and then borrowing against the position. Borrowed money can't be taxed.
You are right that refining is not going to disappear, but it won't be the same. Demand destruction is real, and it is gaining steam in California. There has to be more rationalization of refining capacity because in a couple of years more capacity is coming online. TSO will have to operate at the top of its game. Management has to get a handle on their business and so far they have proven they don't have a clue at times. All this boils down to lower valuations for refining stocks, particularly for TSO. Basically this is a company in a market whose product is in decline with a management having a very difficult time righting the ship and more interested in protecting their own self interest.
This is a thoughtful post and I agree with you about mgmt. Rising tide a few years back hid some operational mediocrity, no?
Willing to give them benefit of two more quarters based on what I heard today vs. back in Jan.
Meanwhile, we need to come up with a good freemarket valuation of their assets...b/c a savvy operator is gonna come sniffing....
Look I had a huge position in this in my trading account. I am still sitting on the jan 10 15 strike calls. I sold all my shares this morning and my jan 09 calls.
I also have over 100,000 shares of this in my IRA that was bought back in dec of 2003 under 7 bucks. You can only imagine how pissed I am and how pissed I was that they didn't sell out.
I still have the shares in my IRA. I hate to say it but I think this could be headed back to 03-04 levels. I didn't think the CC was that great and they are basically warning about the future.
Worst part...I could have sold last night in EH for a profit but I sold this morning for a pretty large loss the shares in my trading account.
Anyways that's my opinion it might not be correct, most likely since I sold you guys have a better chance of an upswing now. Man I am pissed right now. I usually make great calls and I FUBARED this one.
if you have that many shares you should realize how small a company this really is.
You will be able to get $25 in your IRA in next year as long as company does what they say they're going to do and oil doesn't go back to $150.
On a broader note, bottom will be reached for real when all of this type of shareholder give up in frustration....and seems to me like we're just about there..........