Hey Suckers, let's see what's going down at JC Penney. Cash is down, Inventory is down, and Accounts Payable are down. No third parties are supporting this company any more. When this walking skeleton finally keels over, the only parties to recoup their cash will be the Revolving Lender (with a first lien on everything except Real Estate), next the Real Estate mortgage holders, next some of the Senior Bank Debt, and then..... ooops, nothing left for anyone else. Not the Bondholders, and certainly NOT SHAREHOLDERS. The only reason these shares trade at above $1.00 is Wall Street's public relations grist mills, whose fantasies are consumed by small investors who read #$%$ advice and crappier blogs, and think they know what's going on. As opposed to professional money managers who have already passed through the check-out in JC Penney.
In a Costco, Wal Mart, and Amazon world, JC Penney has no reason to exist. If you have a JC Penney gift card, better use it....fast.
Bad hedges, a busted merger.....these are just icing on the rotting cake called Linn Energy. Ever increasing debt and issuances of new stock have funded dividends in excess of free cashflow for years. You can defy gravity only so long. Bye-bye to both the unsustainable dividends and the unsustainable stock price.
For EPD, Depreciation + Amortization = Capital Expenditures. That's good, really good. Unfortunately, New Borrowings + New Stock Issuances are needed to cover those juicy Dividends. That's bad, really bad. Some energy MLP's are well run. Some are just market and government sanctioned ponzi schemes. Just read the Cashflow Statements for EPD on the Yahoo screen; you don't need to be Warren Buffet to figure this one out. If your long, sell. If you're not in, good for you, short it. Tick, tick, tick, tick.........
Sentiment: Strong Sell
What you are seeing is reality. The effect of gravity on the stock of a company that has long funded its Dividends with massive borrowings and issuances of new stock. EPD's Net Income + Depreciation + Amortization has basically equalled Capital Expenditures for years. That's a big net zero for cashflow. Where did you think the Dividends came from....the tooth fairy? Just glance at the Cashflow Statements on the Yahoo screen for chrissakes. Some energy MLPs are well run. Most are leaglized ponzi schemes. The next bubble, pardner. Get out, or go short.
Sentiment: Strong Sell
For the last three years (and maybe more), those juicy dividends have come from incremental debt and stock issuances. How long can this go on? Just read the Cash Flow Statements. You don't have to be Warren Buffet. I'm short on this train wreck in-progress. The first time the banks or wire houses say "No more," it's bye-bye dividend.
Sure, the Income + Depreciation + Amortization covers EDP's voracious appetite for capital expenditures. But there is no excess. Those juicy Dividends are funded by the Issuance of New Debt and New Stock, to the tune of Billions over the last two or three years. Guess what, unless the company can keep borrowing and printing new shares forever, the dividend are not sustainable, so ergo neither is the stock price. Wake up, people.
READ THE CASHFLOW STATEMENTS. Sure, Income + Deprec + Amort cover EPD's huge capital expenditures. But, there's no excess. Those juicy dividends are funded by issuances of debt (Billions) and issuances of new stock (near Billions). The current Dividend level is NOT sustainable, ergo neither is the stock price. WAKE UP. Go short.
Never give a sucker an even break. Oooo, tax structured pass-thru, high dividends, Ooooo, yieldy and safe. Wake up! Just look at the Cashflow Statements. This company and many others in its Peer Group are paying their dividends with Proceeds of New Debt and Issuance of New Stock. Yeah, yeah there is big Depreciation add-back, but look at the Capex. So obvious. Glad I'm short.
Look at today's trades at 1:05 and 1:10 pm. Sent the stock up $0.12. Watch the dribbling out the rest of the afternoon. Maybe the SEC could assign the Bernie Madoff team on this.
On one side of the scale: about $20,000m Cash
Now, on the other side of the scale: losses every single Qtr ($14,000m), over ($50,000m) every year, next Accts Payable ($10,000m), next Short Term Debt ($3,000m), next Long Term Debt ($9,000m). Hmmm, me thinks the minuses far outweigh the Cash. Significant patient lawsuits; attempting to compete against the gold standard Intuitive Surgical (where Prof. Moll should have stayed). Who on Earth is buying this stock. Glad I have the putskis. Have a great weekend. Look at the numbers.
Holy canoli. Someone sure made money yesterday and this morning on HNSN. The guys who bought big blocks in the morning, sending the price up, then selling it one hour later. LOOK AT THE ACTIVITY. The SEC must have the same guys that monitored Bernie Madoff watching this stock. Investors, you're on your own. Glad I have the Puts. Thanks everbody.
As of the last Quarter, Hansen's Accounts Payable are more than the Quarter's GROSS SALES. Mama mia, how you gonna pay da bills. Glad I have the Puts. Thanks guys.
Add Hansen to the miles high junkpile of broken dreams. In this dire economy, it's hard to believe people still squander their money on issues like Hansen. As for me, my Hansen Puts continue to go up. Thanks, all.
I simply cannot believe that Hansen is still in business. It has no viable products. It is losing money like crazy. It's biggest competitor, Intuitive Surgical, is the Rolls Royce of robotic surgical systems, has a large user base, and makes for a huge barrier to entry. Dr Moll, Hansen's founder and chairman, was also a founder of Intuitive. Why on earth did he leave Intuitive? It's comparable to Bill Gates leaving Microsoft to try and startup another Microsoft. Ain't gonna happen. Glad I sold this puppy short. It's just a matter of time......
Dorothy Parker, or some similar wit of the time, made this comment about a midwestern city. It also holds true for stocks of companies with unsustainable revenues, large established competition, rapidly declining cash, and no rational prospects for being. Such stocks are traded up and down, tossed about like a Baby Bouncer, until the last group of suckers takes the final loss. If you're a savvy, tape watching trader, this is a stock for you. If you're an investor ... what are you investing in? While I typically invest long, I bought some Puts on this sick puppy. Ciao.
There is no cogent explanation for anything on HANSEN MEDICAL. Its very existence rests on the chimera of latching onto another Intuitive Surgical. Which is pretty unlikely. I suggest you buy, instead, a potpourri of software stocks; perhaps you'll latch onto the next Microsoft. Good luck.
Does anybody read financials anymore? This poor company is flat busted, continues to lose money, has new stock coming out priced at a pittance in order to sell, and continues to be the pipedream of its founder, who should have stayed at Intuitive Surgical. Zombie banks?? This is a Zombie company.