Stifel Nicholas, Penn West, Ferrellgas and Balance Sheets
Stifel Nicholas just commented PWE needs to fix its balance sheet and a dividend cut would help. As someone who was a former commercial credit analyst who has examined balance sheets in the thousands, PWE has a much stronger balance sheet than the norm. With assets with Book Value in the neighborhood of 2:1 times debt, most companies would die for a balance sheet like that. One need only witness PWE has unsecured, unused available line of credit of $2 billion from banks. Apparently, that didn't tell Stifel anything. I've seen their work before and they are in sore need of decent analysts. Just one more point...Ferrellgas as 100% of their balance sheet assets with virtually zero book value net worth, 100% assets to 100% liability and have managed paying a $2 dividend for 18+years. Makes one wonder how they managed. Anyone out there trying to sort through the BS from these ANALysts, I wish them luck.