So far, IR has not answered my query on plans for the Pfd. issues based on the comments at the Blair conference. I saw a press release regarding calling the Pfd. C, but no mention of the D. What concerns me most is that IR has not done me the courtesy of an answer. I am, after all, an owner of the company. The good companies answer shareholder queries, even if it is to say that they cannot comment.
Thanks again. I found the audio you reference. Right at the end, he mentions calling the Pfd C and then paints a bullseye on the Pfd. D for next year. Maybe the bonds are a good buy since he says they are not callable.
According to the slides in today's CEO presentation, the 10K will be filed in June. CEO must have said something at the event.
Prospectus says: "The first dividend on the Series B Preferred Stock sold in this offering, which is payable in respect of the partial period ending on, and including, June 30, 2013, will be $0.39583 per share and is scheduled to be paid on June 30, 2013. "
It seems to me that the B should be selling under $25 since holding it from Apr. 8, 2013 to April 7, 2014 gets $1.80 in dividends, not $1.875. Once the underwriters stop supporting it, there should be a sudden buying opportunity around $24.85.
Major Writedown Not Expected at Magnum Hunter Resources (MHR), Says Analyst
12:02 PM ET, 04/17/2013 - Street Insider
Yesterday it was learned that Magnum Hunter Resources Corp. (NYSE: MHR) fired its auditor, PwC. Since then shares have fallen 22 percent.
Commenting on news, analyst Neal Dingmann of SunTrust Robinson said a major write-down was unlikely. Additionally he doesn't thinks proven reserves, the company's credit facility, or sales in Eagle Ford will be affected.
SunTrust Robinson Humphrey has a Buy rating on Magnum Hunter with a price target of $10.00
SunTrust Robinson analyst: "Major writedown unlikely.. Target $10" Just released. Can't copy and paste the source.
Here's what yesterday's filing says: "based on the assumed closing of the Company’s previously announced sale of its Eagle Ford Shale properties ... the cash portion of the purchase price is expected to be approximately $380 million". That should satisfy MHR's creditors, at least for this year - again, assuming that MHR actually puts the cash towards cleaning up the balance sheet. Then it has to hit oil in its new wells to add to cash flow from operations.
PVA has raised the funds to buy the MHR Texas assets, so there is a big slug of cash headed MHR's direction. The accounting issues would have to be very, very big to untrack the good that the deal will do for MHR's balance sheet. BDO has been around a long time and has a good reputation in accounting circles. So there is a good chance that this an opportunity to buy on the cheap, though there is considerably more risk now that the accounting issues are on the table. But the deal with PVA is funded - PVA called in its bonds as part of raising the funding. So unless the deal derails, MHR should survive this.
HIG says it redeemed its Mandatory Convertible Pfd. 4/01/13. There were 20 million pfd. shares outstanding and the common was below the threshold price, making the conversion ratio about 91%. So, did HIG issue 18 million common shares on 4/01/13 to take out the pfd? Company hasn't said yet, but that's a significant bit of dilution for shareholders.
$139,000 FV of 2015 bonds traded at 83.10 this morning. Looks like a bottom has formed around the last couple days pricing.
Bloomberg noted yesterday that the US increased its imports of Saudi crude for the latest reporting period despite our booming domestic oil production numbers. That has to put some pricing power into the spot rates for tanker companies.
MEXICO CITY, March 21 (Reuters) - Shares in Mexico's battered homebuilders slumped to fresh lows on Thursday after Moody's cut ratings on Urbi and Geo and signaled more downgrades could come.
Urbi and Geo shares fell about 4 percent while Homex fell more than 2 percent. Moody's held its rating steady on Homex, but put it on a negative outlook.
Mexico's housing sector index is down more than 50 percent this year as it trades at its lowest levels ever.
Schwab indicates that you bought $10,000 FV but then another $106,000 FV hit the market after your purchase, but at 84, up slightly. Maybe you got in at the bottom.
"HXM ended the year with a cash balance of
P$2.3bn and negative FCF for the homebuilding segment of –P$1.7bn. The company is
showing problems in monetizing receivables, especially those resulting from homes sold
through subsidies. Additionally, inventories continue to increase. Cash burn was offset
by an increase in account payable of P$704mn, which in our view this strategy
cannot be sustainable in the long run. We expect the company will continue its
negative FCF tendency in the next two years which would miss guidance of not
increasing debt in 2013. We estimate the company will need P$4.0bn to cover its
cash needs in the next three years. Cash needs could be offset by the delivery of
penitentiaries. We believe the recent changes in accounting practices were one of their
prison projects was de-consolidated, and lack of transparency exemplified in much lower
margins in their infrastructure projects that originally guided will create skepticism for them
to continue to access lending."
9/28/15 bonds are down to 84, yielding 15%. They were at 95 x 100 a few days ago. This is a sign of real trouble with cash flow. Maybe some agency in Mexico is denying payments for the prisons or some such event.
My 6.8% FE Solutions bonds of 2039 were redeemed today by FE. Also, 3 other series of bonds were redeemed, so FE will save a bundle on debt payments. That will make the divvy on the shares safer. I may use the cash from the bonds to buy more shares, but will wait for a pullback.