Pablo has it right in his 5 star post that has been ignored
T. Paul could NOT buy back shares in a simple way
BUT concurrent with a public raise HE CAN
Any shares that convert at $22 will be bought back and delivered back to ATPG -- Taking shares OUT of the public and NOT available to short
Management is basically saying that we will NOT allow dilution at under $27.50
Management is saying they are prepared to pay X so that shares convert at $27.50 and NOT at $22 -- How can anyone interpret this as BEARISH
Once the full details come out as early as tomorrow it will be crystal clear to all ATPG Longs
T. Paul has been thinking of a way to "fix" the shorts for months -- This is his answer.
I DOUBT ATPG would knowingly let short get in on the Pref. action
Any ATPG Long that is unhappy should SELL -- That is his perogative
I would very much doubt that the shorts have a good answer to this possible "knock out" blow but I certainly do not underestimate them or their ingenuity JMHO DYODD
George, back-channel sources confirm new well looks excellent for 7,000+ / 10,000 BBl per day of flow in July..The complicated new stock issue had been in the works for almost a month per our old friends of management sources.TIA for excellent DD articles & posts..T/a is = confirmed triple bottom price pattern & some shorts really see the t/a reasons to cover faster. INDEPH
The buy is vote of confidence that the price at these levels is a good buy. I would not read more into other than that. Well could still be a issue but this purchase reduces the chances of that. This purchase may also cause tutes that were on the sidelines waiting for well news to start accumulating shares.
Vindication to Loomis, George, Prefer, and the other great ATPG longs too many to mention.
Loomis -- Please never let them get to you and stop you telling the TRUTH -- I will not stop for sure
Shows what tripe has been coming from the m*r*ns on my ignore list
Also how about the "oil experts" talking down Mirage #4 -- What say you now!!
Takeshi, the softest pillow is a clear conscience. If they speak the truth, they never have anything to fear. It's fine to need the money, all you have to do is be honest and transparent about why.
Very interesting indeed. Thanks.
The other side is the improvement in operating cash flow minus cap ex minus NPI payments in late 2012 and 2013, if 2011 NPIs are replaced with this capital for 2011 cap ex. If they reduce 2011 NPIs by $100m, free cash flow goes higher in late 2012-2013 by as much as $1/shr.
OCF remains the same, but free cash flow continues to be enhanced.
In a conference call a while back, management said they wanted to use higher ocf to pay the NPIs as quickly as possible (18 to 24 months), and this could be a great way to start. Reduce the level of 2011 new NPIs.