If by silly you mean ERF would not turn off their nat gas production then you are wrong. They have already stated for some time now that they are only producing enough NG to keep their leases. They most certainly can afford to stop producing.
Great! Short it. I' m sure the longs will gladly enjoy the dividends you have to cough up each month as part of your short. We all have different opinions. You see it as a ngas company, i see it as one becoming more oil. You sse the equity offering as a way to hide weak ops. I see is as a way to accellerate their oil drilling program where the current IRR is fantastic.
Done messing with this board too many half truths presented as facts.
Best of luck to all long or short...
so the dividend is safe for 4 months. thanks for clarifying.
looking for another place to go short. at over 50% gas this company is getting slaughtered financially as I type.
also, to think the gas spigots will turn off at these low prices is silly. drilling will decline, but that takes years to factor in. in the short/medium term, producers will pump up production to try to chase any profitability. they simply can't afford to stop producing. the glut is here to stay through 2012.
issuing stock to pay for operations and dividends is akin to a particular financial scheme that ends badly.
Are you really that unfamiliar with securities laws in the US? Don't be ridiculous!
If they were to change the dividend policy within the next 4 months after just issuing stock and publicly stating there would not be any changes, they would be sued by every wall street ambulance chaser out there unless something very drastic and unforeseeable were to happen. ERF management knows that. SOX has put all public companies on notice to be extremely careful in their press releases. No way they can simply change their mind and make a change near-term after the press release if they don't want to be sued & want to keep their jobs.
Best of luck...
They sold it yesterday at 23.45 to the underwriters. Since they are stuck with a potential loss, we will now see the buy recommendations. I doubt this made it into customer accounts so they are motivated to get the price back up. NAV $35--and 50% oil with 230,000 acres in the bakken and 9% yield--easy sell to customers. Grab it while you can.
$23 maybe a good price in the immediate past but I think its a terrible price for new shares when compared to the rest of 2011.
I am hoping that management has some emergency deal that they felt they had to close quickly that they couldn't have waited for a better price.
you didn't get screwed. in fact the management at enerplus scored something fantastic. that deal probably priced days ago. there should be some underwriters losing their jobs.
selling my puts today.
I'm not sure we are down here yet. More downside to come.
There certainly is a consistency with Canadian stocks in that the holders pretty much get sucked in by the dividends and then screwed by management.
I bought yesterday. I wish I would have known ERF management was going to let all their buddies know about dilution before it was announced, I could have waited. Instead all those holding ERF that weren't well connected, myself included, are getting bent over the table big time. I'm surprised this type of activity is legal. What a bunch of crooks.
It's BS. Someone knew. As for me, I just asked the SEC launch to investigate possible illegal insider trading on ERF today. Wish many others would do the same. Futile? Maybe unless others follow suit. I am sick to death of the tilted playing field. Noise needs to be made, or the retail investor will forver be ignored.