Yes, I have the Talen bonds, CUSIP 69352JAN7. They are currently 56. The market is saying they will default. Hope not. Talen just sold a generation plant for $650MM.
Very light volume on the decline. Looks like too much. There was no news to cause this, just the same old oil patch blues. Earnings soon and we'll see what's going on.
Would someone in the know please tell me what the relationship now is between Talen and PPL. Specifically, PPL has corporate bonds still trading at 60. Beaten down because of energy prices. Are they actually now Talen bonds and what is the chance that they will default? I bought some of them a long time ago around par and just concerned.
Question now is can they generate enough income to stay solvent and ride this drilling slump out over who knows how long? They are now in a good position to go private at a low buyback price which is what I would recommend to management.
The "street" has been selling for several weeks on huge volume. Unrelenting day after day. Stock down 50% in a very short time. This despite the fundamentals. There was a closing uptick today so hope it's over.
Sentiment: Strong Buy
Where is the huge volume on the downside over the past few days coming from? A million + some days. The story on the company does not seem that bad??
It's like catching a falling knife now. Who knows where the bottom might be? The company does have the resources in the ground and their sand is essential to the fracking process.
They may reduce the dividend more until business recovers. The next quarter earnings (Nov. 4) will tell. If they can downsize and survive they have tremendous reserves of high quality sand that is a key raw material for the drillers. This even more so with the new "refracking" process. I'm trying to talk myself into not panicking in here and dumping with everyone else (1.4 million on Fri alone). I did sell some Nov 10 puts naked for $175 each. That's like buying the stock for 8.25. We'll see.