I never said it would happen. I simply said it was a stated goal of management for it to happen. Note my words were "it would be most unusual" No matter what I say it doesn't really matter to you. You are just another attack dog. You should hang out with em2372. Maybe you are em2372.
Not much. Today oil prices dropped due to the strong dollar. This can change by next week. SYRG held very strong today because it is more of a future play where the next quarters numbers are not critical to interpet the growth projectory. We also don't have any cash flow issues that may be threatened if oil backs down in the short term.
Note I am not saying the deal is done where the common retain 50% of their shares. I am simply stating the ramifications if they did. Which would be most unusual. If the parties cannot agree on anything a chapter 7 can still happen here. Though the likelyhood appears to be some middle ground.
mtay515 - I hope you have more than this position. Patience is key to make great money with this stock. I think DVN is moving up rapidly. From $17 to $37 in less than 6 months is lightning speed to me. I have one large small cap position which often travels in the opposite direction of DVN which helps me deal with the down days. I also have other energy positions and some positions outside of energy. The main reason I like DVN is because I don't feel that I am likely to lose any money here and it has an excellent chance of making money. Oil can go back down to $45. If it does DVN may revisit the low $30 range but we won't lose our investment. Hopefully Harold Hamm is correct and we will see $70 oil this year. Most likely however is $60 oil but the truth is no one really knows.
Hmm...3 billion loss less the carryback ..say 2.5 billion times a 40% tax rate = 1 billion in future tax savings, Now assuming a 50% retention for the common we get a 500 million dollar savings divided by 150 million we get $3.33 cents..Still think I am making this up. Didn't you state that these shares are worthless?
If the NOL carry forward is usable because the common shareholders retain 50% of the revised company then this company may be worth $3 a share before counting the value of its hard assets. There appears to be a good chance this will happen and it was a stated goal of managment. However I will not invest here because I would sooner not make money than risk losing it. Now if you listen to posters like Em2372 this investment is already worthless so any discussion is pointless. It is amazing the level of ignorance I see from him. Oh, no! I will now get 50 more insulting posts from him..
A decent balance sheet and decent cash flow. The industry has a problem but this does look like one of the stronger plays in a very weak industry. But why invest in a very weak industry?
The ramifications of this information, if accurate, are astounding! Any governmental bureaucrat who trys to get in the way of this train will be run over (IMHO).
I have em2372 on ignore. I suspect that this is not his only mistep. He is either a professional shill or as dumb as they get. I lean towards the latter. Thought his lies go beyond stupid. If he is not a professional shill he is a really sick guy.
Of course Cramer has almost a 50:50 chance of being correct. I rarely watch him though I happened to see him on CNBC yesterday. Generally I effectively have him on ignore like I do with several other posters.
"The street" has had a sell rating on DVN from $17 to the present. But I saw Cramer say that he "missed" DVN. I did not interpret that as a buy. I hope not. I agree 100% with your logic. When Cramer says buy, be careful. I remember when Cramer said buy EPE when it was at $19 a share before collapsing to $1.60. We don't want his support...Fortunatley I believe we still don't have it..
CHK, SD and DVN were the first frackers and showed vision but DVN is the only one that did not destroy its balance sheet in the process. The stack purchases bought at firesale prices in December 2015 and January 2016 materially increased their oil revenue and this play is profiable at under $40 oil. Sometimes talk of the current stock price overshadows just how smartly this company is run.
I doubt the traders took this stock for the full ride so far,. You have to be willing to hold even when you think there will be a pullback if you want to take a stock from $22 to $36 or $46. The traders can also make good money but they usually don't hold for that long a period. Of course there are shades of grey in the middle..
My understanding is that there will be a reorganized company to replace UPL and that former shareholders may get shares in the new company. That is why UPLMQ is trading so high presently. Apparently many think they will get a big portion of the reorganozed entity. I don't know if they will keep the UPL symbol, but I suspect they will. In the meantime UPLMQ is 100% tradable.
I wonder if they will do some hedging now. Certainly they make a bundle with their stack playat $50 oil. I suspect tey will do some hedging here. Though I do think oil will be higher later in the year this is not a universal opinion.
If we knew exactly when the traders would do anything we could be much much more wealthy.