Anyone who pays any attention to this guy might as well allow him to sell you shares in the Brooklyn bridge. Go to Seeking Alpha and just look at his picture. He looks like a used Pontiac salesman, circa 1978. You can almost smell the aftershave coming off this guy's photo. Anyone who dumped this stock when it has over 2 and a half years left is dumb. There is no such thnig as "fair value" for this stock because it's not a case of one guy holding it until August, 2015, and smopke and mirros #$%$ of what's left in dividend payouts. There are plenty of people out there who want a 35% return. Even Zack's rates the stock at hold, and they're known for underrating everything.
Seeking Alpha is a well-known repository of shorting #$%$, and the entire website exists simply to manipulate stock prices. What sort of reputable organization would allow an anonymous article like the one from "Fair Value". If this guy is so decent and upstanding, why doesn't he publish his real name?
Figure it out. The stock was moving this week. "Fair Value" is a shorting parasite. He panicked and wrote a negative and damaging article, and Seeking Alpha, the #$%$, published it, anonymously. My advice is ignore this #$%$
And just imagine the value next year, when the divi/distribution gets close to 100%.... As D.P.Moynihan said, everybody is entitled to their own opinions but they are not entitled to their own facts. It is easy to check the facts. Go to Whiting Petroleum Corp web site and check WHX. Don't forget to read FAQ section. The facts: the fund will end its life around mid 2015 with the share value of zero and all assets going back to the parent company. The remaining distributions (until the end of this fund's life) add to approximately $5.00, give or take some. To make money without high risk, one has to buy the shares below $4.00/share. Everything else is speculation based on the expectation that there will be share buyers willing to pay more, usually because they don't understand what they are getting into. It already happened more than once with WHX and is likely to happen again. There will be people pointing out "huge" distribution (percent wise) next year and there will be crashes based on somebody publishing stories that simply state what everybody can read on Whiting's web site. In a rational, well thought through market, WHX is worth around $4.00/share. In a wild world of uninformed speculation, anything is possible. Enjoy the ride or choose a better way - go to a casino....
All call options run out of time eventually, and their value diminishes the less time they have left. WHX has about 2 years left, if it is going to pay about 5 dollars out in that time with oil at around 77 dollars what value should we place above that number on the "fact" their payout will be dramtically higher if oil rises in that time span (a .60 per quarter payout already pays almost all the expenses meaning anything above that number flowsdirectly to the bottom line...minus taxes)?
Recently WHX looks like a typical Ponzi scheme, i.e. financial pyramide.
Like in every Ponzi scheme there are people who win (minority) and who loose (majority). Here the arithmetic is simple: at 9$ with "fair value" 3-50 to 4$ one player out of 3 wins, other two loose. The chances are not too bad, by the way, if you compare to casino. But there are many games with much better odds, why to play here?