I find very complex to grasp earnings report. It involves lot of derivatives. They also do hedging. I only understood GAAP loss of $1 per share. Please reply whether this stock is worth buying at current price. If not at what price is this stock worth buying? Since they declared dividend I am bit tempted to buy, however, I cannot afford capital loss.
Never buy a stock where you do not understand the financials. Specially if you cannot afford capital loss. Personally I like EROC at these prices and think it goes higher, I liked the quarter results...But DO NOT BUY SOMETHING YOU DO NOT UNDERSTAND!
Check out GSL, SSW, NM financials. Alot simpler without all these hedges.
Ahem did you really think they would bring in more revenue for gas? Prices will go up but demand will go down. NO DUH!>.> AS expected revenue falls from US sales.
Everyone knows there's an over supply problem. And everyone who bought I assume knows already they are going to have sales problems. But at the very least they have hedges for the price decline. That is the smart move.
It's all good they paid down more than expected :).
Inflation should hit us more a lot in 2010 and drive gas/oil/gold/silver/food up sky high even more I'd say at least 20-50% from these prices.
If EROC is willing to export they can make even more money than in the US market later on. Hopefully they will export once prices recover and say, "since you have so much reserves fine, we will produce for the rest of the world."
They don't have to cut production do they? How is global supply of gas going?
Hold it out and buy it lower,if it drops a chunk later today. Or if you want wait for FED to crash the commodity market yet again to get bond buyers.
Better not buy it for short term play this needs at least 1+ year to fully gain momentum. >.>