i really marvel at deal being done, very accretive to cash flow, they raised distribution to 2.03 per yr. as usual, stock goes dn on offering into the pricing. they price at 17 and people sell pre mkt 16.75. makes 0 sense. they great coverage ratio, great hedges and here it is 12% yield...loading da boat!
I agree with you. I purchased shares yesterday on the drop. What will happen with the offering? I wonder if the parent of the company will step in and buy shares? MEMP certainly knew what the price of the stock was doing since Oct.30th. They were evidently reluctant to price the offering any lower. This is a small company and share count, so it is easily manipulated. I am not into conspiracy theories, but I know that happens.
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i tend to think these cos view over longer term and do the math at the accretiveness of the property they buying and even if priced at 17, it adds more to DCF per share so they view as worth doing for long term holders.
i dont think the parent will buy shares, would be kind of inconsistent with co selling shares for a deal. wouldnt mind seeing some management buy shares in open market though!
i think we will look back and the stock will be low 20s in a few months. 0 reason to have yield over 10%. really does mind me of LINE few yrs ago, very hedged, growing thru acq and people didnt like until started going up!