On the brighter side with less shares outstanding stock price movements may be more volatile in the future. This can be a good thing when this industry turns around.
I like STNG and ASC. Both are top tier companies in this industry. I bought STNG shares this morning and more ASC shares as well. Just wait a few months. I think we will be very happy...
I don't know about pivotal points but I do know that the cash flow for STNG has been going down each quarter and the payout rate for the dividend may get too high to support. If the dividend gets lowered, along with a further deterioration in this industry, STNG may continue its slide down. On the brighter side we are probably only months away from an industry turnaround and STNG will probably be able to continue its dividend for at least the next quarter. I think a policy like ASC has where 60% of the quarters profit will be distributed to the shareholders is safer than risking a dividend cut which Wall Street hates.
The company has wonderful intentions but I am not so sure that a temporary bump in the stock price resolves anything. As a general rule I am not a fan of stock buybacks. I am a fan of debt reduction. I would have preferred that kind of an announcement.
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.
One of the best oil plays in the U.S. It is profitable at $40 oil. A great way to hedge your bets if oil stays between $45 and $55 for an extended period of time. An even better play at $60 oil. The purchase price was very reasonable. Go MRO!
War is not needed or wanted to move this stock. Let's hope we don't have a material conflict with the Ruskies. Money won't do anyone any good if we all get melted into nuclear waste.
Are sneaking up..Up to $2.40 last I looked. It is shameful the UPL had to do a chapter 11 when it may be in the profit zone in as little as a few months. The company will do well. If by some miracle the common keep 50% of the shares the NOL carryforward plus UPL's low cost production machine in a $2.60 + price environment would propel these shares to be worth a few bucks. But of course it is a rare event indeed that the common walk away with 50 % of the restructured company. There is also a chance of a chapter 7... Place your bets..
Not only have the US oil reserves going down recently but the Saudi oil reserves have been going down for the last 6 months! Of some concern is a new oil seller hitting the market in 2018, but I will worry about that in late 2017. Who is new seller you ask? It is the US government selling of some of the reserves created way back in the 1970"s to pay for road construction and other sundry projects. Not sure how much they will sell, but at least it will temporary..
One more comment. Most other E & P's pay a significant interest cost which adds at least several dollars to the net cost per barrel. SYRG does not have any significant interest expense. This is an important competitive advantage.
After a very careful review of this industry I have concluded that things will get better towards the end of 2016. The sell-off appears to have created a value play in this industry that justifies a purchase in spite of the negative momentum. As of today I am now in ASC, STNG and TNK, I am well aware that there may be further downside but I now believe this risk is accepable based on a combination of the upside and the dividend while I wait. This investment is in a tax deferred account which will maximize its value for me.
That's a fair point. But all of Wall Street is crooked. They expose e few cases here and there but it is the nature of the beast. I try to work with the crooks. Like buying SYF under $28 a share and having a 90% chance of at least a 10% return in a year and probably much more..
My buy order was really based on 2 factors. The first is the net asset value. The FMV of the assets less the liabilities for ASC sold on the open market should result in net proceeds in excess of $9 per share. This could make ASC a buyout candidate. The other factor was that it ships a completed product as opposed to a raw product. The supply situation is less onerous in this space and will balance sooner than a crude shipper.
I no longer have a strong opinion on this stock because I never thought it would hold in this range so I concede anything is possible, however where do you come up with $1.85 - 2.00?
Maybe because at any moment this "investment" may be worth "0" and other energy plays are on sale due to BREXIT?
I agree. The worst case scenario is already baked in. Yes STNG can go lower, which is even more insanity, but the upside way way outweighs the downside (IMHO).
I would also buy more but it is quite doubtful that we will get there. So today I went all out buying. The downside is maybe 50 cents? The upside is maybe $12? So I decided not to wait.
We are not talking about anything making sense here. I am simply asking a question. I give it a 50:50 shot. When I first mentioned the possibility here no one thought it possible. Now, well, things have changed.