Pretty sure at one time they were enthusiastic pumpers of SDRL, LNCO and SUNE, among other winners. Maybe their Magic 8 Ball needs an update.
They do seem to be generating a load of negativity. Probably a good thing since they're best known for pumping stocks that sink and trashing stocks that do well. I can't imagine who would actually subscribe to any of their newsletters. Must be masochists.
I'm pretty sure that half-wit Nelson must be one of their proteges.
After Wednesday’s filing, the chamber issued a statement urging the Williams board of directors to revisit the terms of the merger, as it may represent a material change in content the board originally agreed to.
A vote by Williams shareholders, who must approve the deal, has yet to be set. And if this week’s developments are a tactic to sway votes toward no, it might be working.
“There’s no good reason for Williams shareholders to vote for this merger,” Tulsa-based money manager Fred Russell said after the filing.
“They may have voted for the merger when it was first proposed in June, when the premium over Williams stock offered by Energy Transfer was 32 percent, but that premium shrank to roughly 4.5 percent in the second deal. Why would someone going to a wedding be told they’re less valuable and still go to the wedding?”
Local shareholders a minority
The announcement that Williams’ headquarters would move and presumably many employees would be out of a job is reason enough for many local shareholders to vote
Up until Wednesday, I had assumed the Energy Transfer-Williams deal would go through.
I didn’t — I don’t — have any inside information. And I’m not embarrassed to admit that I’m at a loss trying to understand a good portion of the outside information available via pages and pages of disclosure documents.
But my gut told me ETE would buy Williams. Not because I want that to happen or because I think the combined Williams-Energy Transfer model is something that makes sense. (To the latter point, does the deal make sense? I don’t know. I know Energy Transfer would love to operate the Transco pipeline, but then so would I.)
No, I had the feeling that the deal would likely go through because Kelcy Warren seems to me like the type of person who — and this is a superficial judgment on my part — ultimately gets exactly what he wants.
But I feel Wednesday’s change in some major elements of the deal raises the question: Is this merger something that Warren even wants anymore?
Or is the disclosure that “Whoops, initial projections were dramatically wrong about the value of expected synergies” and “Oh, by the way, the vast majority of Williams operations would leave Oklahoma for good” a new strategy?
Is it a tactic to get shareholders to vote against a bad but ironclad contract that, rumor has it, Energy Transfer has been trying to kill for months now?
Mike Neal, president and CEO of the Tulsa Regional Chamber, said there are rumors that ETE does, in fact, want out.
“We’ve been hearing rumors — and rumors are rumors, you have no idea in any instance as to the validity of them — but we’ve been hearing for some time that Mr. Warren and the ETE leadership wants this deal to go away,” Neal said. “We’ve had no direct dialogue with him, and we have no idea about the accuracy or validity of those comments. But we keep hearing it over and over and over, and it seems to be escalating.”
After Wednesday’s filing, the chamber issued a statement urging the Williams boa
There have been a few days when the volume has been in the 30 to 48 million share range which has skewed the average. If you look at the daily volumes for the past few weeks, most of the time it's been sub 20 million.
Not debating the point of your message, just saying that today's volume wasn't so much different recent median, as opposed to average.
I seem to recall that Sunoco was throwing off a decent amount of cash. Selling it now, especially at a bargain price, would make them seem reckless and desperate ... sort of like the folks at SUNE who are on the verge of selling office supplies or anything else that isn't nailed down.
And Nat Gas at $1.87. Up from its recent lows, but things would be nicer back at least over $2.50
Probably better to sell near term covered calls when the stock price spikes or else buy calls much further out when the stock price drops. Right now the the Jan 2018 $10 call seems a bargain. If things don't get sorted out by then you're not risking much.
Anything is possible, but until the dust settles on this WMB deal, one way or the other, there's going to be volatility and upside resistance. Improving energy prices do help though.
They already plan to create ETC, although where that will eventually lead to, like so much else with the Energy Transfer familiy, is a little vague.
Agree the Sunoco sale and GE interest are speculative at this point and nothing substantive has been published, although market price can easily move on nothing more than rumor, especially for skittish shorts.
If they raised 2 billion from a sale it would bolster their balance sheet. I don't thin it was ever intended to cover the WMB deal. It is a non-core business, but, I believe, it does contribute to DCF
"they don't have to use present day $$$"
They are foregoing their full dividend payments in present day dollars, they are preserving credit ratings that would have cost the company present day & future dollars if the ratings were cut and, as far as conditions will permit, they are protecting the present day distributions the rest of us will be receiving. It could also discourage WMB shareholder approval of the deal, which wouldn't be a bad thing and might save more money than this deal costs.
Not an ideal thing to do in better times, but under the present day circumstances it may prove a good thing for everyone. Given the time frame it also implies an educated guess that things should be far better in 9 quarters.