I heard the trading is not willful, that the last of the energy traders are getting margin calls as crude prices continue to dip. They have to sell some winners to make up the difference if they are underwater on crude futures.
"Valero ended the third quarter of 2014 with $6.4 billion in total debt and $4.2 billion of cash and temporary cash investments ..."
US refiners are the lowest cost producers, so the advantage in any price wars would belong to them. Even if crude exports were approved, they still would have the advantage of natural gas prices at 30%-50% discounts to the ROW.
The charts for almost every energy stock, just like XCO's, had a sharp spike upward around 1 pm today and immediately went into a downdraft after Saudi Arabia cuts its selling price for oil to the U.S., while raising prices for its oil in other locations.
Crazyaches is off the mark on the rationale behind the reincorporation merger. Most major companies are incorporated in Delaware for the same reasons CTSO will be. As the PRE 14A states:
"The procedures and degree of stockholder approval required for Delaware corporations for the authorization of additional shares of stock, and for approval of certain mergers and other transactions, present fewer practical impediments to the capital raising process than those which apply to Nevada corporations."
A more detailed explanation can be read on pages 24-29 of the PRE 14A.
XCO just let go a CEO that almost ran the company into the ground. Why would they hook up with Darden, who has done the same thing at KWK?
You are correct. A reverse split applies to all shares, warrants and options.
Authorized Shares 800,000,000
Issued and Outstanding Shares 581,570,005
Shares Available for Future Issuance 218,429,995
"If this proposal is approved, the Board would have the sole discretion to elect, as it determines to be in the best interest of the Company and our stockholders, to effect a reverse stock split. The Board will also have sole discretion not to approve the reverse stock split. Therefore, approval of this proposal will constitute express authorization for the Board not to proceed with the reverse stock split if it should so decide. The Board believes that approval of a proposal providing this authority to the Board, rather than mere approval of an immediate reverse stock split, would give the Board the flexibility to react to market conditions and act in the best interests of the Company and our stockholders." (PRE 14A)
"Our Board believes that the proposed authorization of preferred stock is desirable as any particular issuance or series of preferred stock could, depending on the terms, make it more difficult or discourage any attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or other means. Issuance of preferred stock could have the effect of diluting the stock ownership of persons seeking control of the Company, and the possibility of such dilution could have a deterrent effect on persons seeking to acquire control. Accordingly, the power to issue shares of preferred stock could enable the board of directors to make it more difficult to replace incumbent directors and to accomplish business combinations opposed by the incumbent board of directors."
Just effecting a reverse stock split and exchange listing does nothing for the company without the ability to raise additional capital. The additional post-split common and preferred shares are for sale to institutions. Selling the additional common shares obviously will dilute current shareholders' ownership percentage, as will the preferred shares if accompanied by a conversion privilege that is exercised..
It's also on SEC Edgar, accessible directly or through CTSO's website (Investor Relations/SEC Filings).
That timeframe soon may be reduced. Per the PRE 14A"
"Effect on Options and Warrants. In addition, we would adjust all outstanding shares of any options or warrants entitling the holders to purchase shares of our Common Stock as a result of the reverse stock split ..."
Fuel sales volumes increase as prices decrease, so don't bet on it, beyond seasonal differences.
"GAO was asked to provide information on the implications of removing crude oil export restrictions." Who asked? DOE? Congress? White House? Someone wanted a disinterested third party to check the facts. Included was a recommendation to reexamine the size of SPR, given the abundance of domestic crude. Recall some opponents of crude exports had suggested the SPR be increased first. Someone soon will be standing behind a podium, waving in hand this report.
“Allowing crude oil exports would increase world supplies of crude oil, which is expected to reduce international prices and, subsequently, lower consumer fuel prices.”
Watch for post-election action.
Oh, no! The Buzz Trader brought CTSO to the biotech stock killer's attention. Based on TBT's tweets, I doubt he intended to throw bait to the shark. Let's hope AF enjoyed the snack but won't be back.
You may want to ask the question another way. A reverse split is the means to an end, an exchange listing. Ask if anyone prefers trading OTCBB or NYSE MKT.