I'm here, but I'm was out on the day of the deal. It's a P and A after a billion dollars. Davey Jones killed me off. I wish everyone good luck. In the end - probably a good thing. I have FCX. JB gets an F on this well. No Bell Curve.
moffett screwed everyone with his boondoggle DJ1, DJ2 will probably be no different. MMR shareholders were bailed out only because moffett needed to bail himself out and his cronies. FCX shareholders were the ones that were really screwed here, they picked up the tab for moffetts mistakes relative to mmr. Hopefully the lawsuits can untangle fcx shareholders from this moffett's self dealing, and mmr can return to its rightful price of zero.
The option would be for MMR to issue more stock at rock bottom prices if FCX did not decide to buy out the company. The new stock would dilute any shares FCX would get from their convertible share issue. FCX would have had a huge loss on the preferred shares and another buyer could come in on the cheap. Also, it would cost more to buy the company once the ultra deep was successfully proven to have huge economic potential. These people are not stupid. They got it on the cheap. The new technoogy developed for the ultra deep should be a huge asset that can be licensed to others.
He gets an F because he deserves the F. Hind site, he should of skipped DJ1 and gone straight toward DJ2! This was obvious from the beginning, now 2-3 years later, he has no cash and is forced to sell it to himself and everyone of the share holders got screwed, even JB.
When you spend a billion dollars on a wildcat and you do not produce anything, there is not much else that you can say. Value is in production, period.
I put a sell on MMR only because of the valuation, it is expensive. I do not think it is worth shorting and certainly not worth buying at these levels. I do not see a catalyst for 3+ months and no SUD catalyst until they get Lafitte,BBE approved and whatever the heck is going on with SS188.....
I am long EXXI and I am not happy about that either, although the valuation is still attractive and if you can run numbers on MMR RT being successful, you might try looking at what that does to EXXI. If you look at what MMR RT needs to produce to get 5.8Cents, EXXI will get .80 Cents X a 10X = $8.00 on top of Nav of ~$40 = $48 dollars for EXXI.
Anyway, this is what makes markets.
"JB gets an F with no bell curve" That's pretty unfair considering he's the first one to ever take this test and only one taking it. I hope your not a teacher Slick, I wouldn't want you grading my work!