So the deal is: The appeals court ruled that the judge in the case was wrong to send the case to trial.
CYAN contended that it needed to be brought before a mediator and the mediator would rule if mediation was appropriate. Only in the case that the mediator ruled that mediation was not appropriate (akin to a barber telling you you that you don;t need a haircut) would the case go back to court.
So now the original judge is required by the appeals court to send the case to a mediator.
This is not a huge deal, but it certainly cuts out the "tail risk" of a large judgement, IMHO.
The company's OTHER lawsuit, the patent case with Univ. of Illinois is not affected by this ruling and is separate.
At some point, this ruling will lead to some reduction in ongoing legal costs, but not immediately.
Of much greater import are the following items that will be on display in the upcoming earnings report:
1) ability to produce product
2) ability to increase revenue by more than a high single digits rate
3) improvement in gross margin from shifting sales out of private label to branded
All that being said, the stock chart has continued to demonstrate the creation of a "rounding bottom" or "dormant bottom" pattern. Refer to Edwards & Magee (the classic book on technical analysis/charting) or an appropriate web site. The stock did not get hit when the equity market sold off in September/early October.
But it did not really rally in the late-October rally.
You should then, understand, that the lawyers are all simply competing to be the firm that the court chooses to represent the entire class. They will be the ones that get the bulk of the fees, while the others will get crumbs. That's all it is.
The Cole sale has not yet closed and is likely to be substantially changed in view of recent events.
There is a stench emanating from that deal which got alot stronger this week.
They can say anything they want.
They just use it as an excuse not to say anything.
If they sold all the investment grade stuff, they would be left with just junk.
The number doesn't matter. In the end there is only one.
The shysters are just competing to get the best class representative.
Since it is a "class action" there is one class and one suit.
and generally it is covered by insurance.
How about, even though they say there is no impact on the 2013 numbersr they also
1) Told investors not to rely upon them, and
2) haven't finished reviewing them.
How would they know it doesn't impact those numbers if they have not reviewed them.
from a Yankee
I hear that the "laterals" now are getting run up as far as
7,000 feet pretty regularly, and they're testing even longer.
They also are trying to reuse alot of the frac water.
You know so much, wow.
How is it that as the titanic is sinking it continues to generate free cash flow and profits.
Don't make yourself look dumb with this kind of talk.
But they dont have a big operation in California, so it really doesn't matter.
Also, the description above is the old method of drilling. vertical.
Hydraulic fracturing uses hugely larger amounts of water.
Don't be ridiculous.
The dividend will be increased 10% again in the new year.
Production will increase again.
They will open another new phase at FC or CL.
They will get approval for another new asset development program.
Differentials won't be as big.
Keep your pants on.
Thanks for asking.
Well, for now I am holding. there's nothing worse than becoming a LT investor involuntarily.
It seems probably too late to sell.
I own this because I am using the monthly dividends to make a monthly student loan payment for one of my kids.
Fortunately, it is only $108 a month.
But I own some in my IRA (a much smaller piece).
I guess the downside is that they have to restate past year's and they find that the cash flow was seriously misrepresented.
The company will have to start to shrink by selling assets where they have the opportunity to get good prices. That will let them use the proceeds for buybacks that are WAY below tangible book value. Of course, as they buy back stock, they will have to reduce debt.
There is nothing to prevent it, and analysts have already been asking about this scenario on recent conference calls and conference presentations. As rescue says below, tax laws may change in the future. For now, of course, he cannot admit to any intent to do this, but he has answered that there is nothing in the law to prevent KMI from owning the GP of some other or future MLP.