Regarding the company employees not buying the stock, when I spoke with Jeff Wood (CFO) a month or so ago, he indicated that it was indeed a blackout period. I have no idea how long that blackout is though.
I definitely agree with you about that 20% rule. I'm already uneasy right now because I have more than 20% in one INDUSTRY!
there are two reasons that I can think of
1) they already own a large position in the company, more than most of the companies you mention
2) there are black out periods during which they are not allowed to buy
most people believe in some diversification and to put more than 20% of your assets in one spot is not good investing, it is gambling. DO more research before you try to talk price down so you can get in or cover your short.
Why? Some other issues for sure but with the Loonie now backed down to below 86 and the bottom still falling out of the nat gas market why buy this junk, when you could own some Paramount (PMGYF) (~same price range) that actually pays a decent distribution and if reduced will not be knocked down by 90%. Then there is the CHKPRD which has knocked off 10 points from it's recent high on $4.35 gas. At $62-64 your investment is held up by a fixed dividend that can not be reduced but then like the crappy EROC could see the value drop by something against it's convertible factor on the common. Sub $3 gas will knock the cr@p out of EROC, CHKPRD will certainly drop off as well but the dividend is secure against the time in 18-24 months when gas returns to +$6 as rigs have already been idled, world storage is at near maximum and shutting in production is now beginning. The Advent of near $16 gas created the huge burgeoning of the fleet of LNG carriers now being delivered and to be near time delivered. This means the North American market that was an isolated market is now a globalized market. There is a huge global glut of Gas and it is now pressuring even oil. EROC is just going to get worse as their management is really really bad. Take a look at the condition of NGPC one of their major debt holders. Stay away from this really bad Masterbt..Limited Partnership. There are so many other better plays. MTP, KYE, ENY, AMJ, NGT even an EPPRC. EROC is heading for sub $2.50 where it may be then taken over at $3.25. You can be sure that any take over will substantially reward management and leave the Limited partners with their shorts pulled down from behind!
you made a call that came true, that I can not deny, whether it is good long term we will see, whether you are ahead of me, I dont know since 12/08 my account is up 94%s In march i was in eroc with 30k shares at ave of $4 and got out at $5.40 to go into BBEP to make $2 per share then I came back to EROC and now have 61k shares at about 3.37 average cost so the current 8% haircut is not significant nor do I believe dead for several years, if it is dead by end of year I will be greatly surprised. gltu but be a little softer with people or you will develop a lot of IGNORES
The fact remains that Phoenix made the correct choice in selling. the stock has retreated back near its 52 week lows these past 2 days. It's just the way the casino err market is today unfortunately
"I bought more EROC today. It will go up in the long-term"
I don't have that many years. Maybe you do. There are just too many other stocks that can make money NOW and pay me superb divvy's.
EROC is a loser for now until natgas gets a decent price in America. And that "ain't" gonna happen for a very long long time.
Glad that you saved $0.50 phoenix. Hope you don't miss out on $5-$6 for that $0.50.
I don't really care how I time it if units revert to over $7 and paying $1.42 a year in the next couple years.
I was way out in front of you and everyone else here when I sold this POS.
Still think I was wrong, eh?
06/03/2009 YOU SOLD
EROC EAGLE ROCK ENERGY PARTNERS LP UNIT LTD
Cash Shares: -1,700.000 Price: $3.76 Amount: $6,383.83
Comm: $8.00 Fees: $0.17
Notice that was at the very top of this run. Unfortunately I didn't get the whole allotment I wanted to sell at that price.