No surprise here. They sue just because the stock dropped on an SEC inquiry. It's a race to see who gets to represent the class, should one ever be awarded. When it turns out the SEC doesn't come up with anything, there is no longer a basis for the suit. The attorneys were just going for a settlement anyway and hoped never to find themselves in an actual suit that cost them time and money. I wish we would have some reforms that forced those making these frivolous suits pay when they lose. It would greatly reduce the taxpayer expense for such waste.
I hold nearly 200K units in various accounts. Having purchased my position last summer on the fall, I am very pleased with management. While they perhaps got overly aggressive with put accounting and set themselves up for the bear attack, it was the bear attack with the resulting SEC inquiry that spoiled the BRY deal. Since that time, they have done the right things with the cards they hold IMO and the environment remains constructive (high commodity prices, low interest rates, plenty of acquisition targets) for them to implement their strategy. I suspect we will see your $35 to $37 objective this year. However, to get back to $42, it will likely take an increase in the distribution and a general expectation that further increases will continue in the future. I just don't see this stock trading at less than an 8% distribution rate. An 8% distribution today would be a stock price of $36.25, so that may be a cap without further distribution increases or other materially favorable news, but that's quite a bit higher than we are today. GL
The G20 is discussing tackling what they claim is a $57 trillion global infrastructure deficit by loosening the rules relating to such entities as insurance companies and pensions to more readily fund such projects. They claim doing so would quickly increase global growth about 2% annually. IF they could make progress along these lines, it would seem any announcement of such would cause VALE to move up aggressively. Regardless, the magnitude of the problem would seem to support VALE stock over time. I found article on AAPL site, as they were mentioned it in relating to taxation.
You must have missed the results and call, so let me fill you in. Cash flow was up and already sufficient to cover the dividend. Cash flow is forecast to increase further in 2H14 due to higher volume, lower cap-ex and anticipated higher I/O prices. More likely to see a special additional dividend than a cut.
What management is doing meets their objectives and, as such, it will meet the objectives of unit holders over time. I am not capable of figuring out who got the better deal here, if anyone, but it's typical for a known seller to have to take a bit of a haircut (it's always better to be an unwilling seller to a motivated buyer). Still, I am glad to see the distribution further secured and expect to experience capital appreciation over time, so long as interest rates stay low and oil and natural gas prices don't go down too low. GLTA
Perhaps options, but I suspect day-traders were caught expecting the stock to rally into the close on all the great news as people built positions for Monday's release of the sales numbers, but when all the traders had to exit their positions at the end of the day there just weren't buyers to absorb them. I personally had 13,000 shares that I had no choice other than to sell and ended up taking a little over $101.30 after having just bought them a bit earlier at $101.70. Sometimes trades just don't work out and sometimes stocks go in directions that seem irrational. IMO though, Apple should go up in the coming weeks because the 6 demand is going to be huge, ASPs will rise, China license will be obtained, and people will begin to place some value on the watch when they realize all the holiday gift cards that people are going to buy to get the watch before it is even available.
I do not understand it and that's why I added LNCO to my holdings when it dropped to $26 a while back. It seems to me they should be trading in a much closer proximity to each other and that LNCO is the better buy at the moment. The only reasons LNCO would trade less than LINE would seem to me to be 1) tax implications, 2) BRY sellers and 3) general composition of holders. My impression, perhaps wrong, is that LNCO is held by more professionals while LINE is held by more retail holders. The pros may be slower to get back into a stock with a sordid recent history.
Not uncommon to see a stock retreat after announcing a big deal and going into a quiet period. In this case, there is the backdrop of political grandstanding about inversions in general (though I doubt anyone really thinks Congress will act before this deal is done). Still, we are not likely to go much higher (and may go lower) before the deal is done and the stock that gets put in the hands of those who don't want to hold it are flushed through. I did note Gonzalez said there would be a large stock buyback upon completing the deal. That said, I will add on any weakness because this will be a $70+ stock later in 2015 IMO.
Yes, blind. Yet, I bought over 100,000 shares at an average cost basis of less than $420, so perhaps it's not so bad to be blind.
The new offering represents a tremendous amount of profit potential in the coming year or two and the stock will react once the trading and Alibaba IPO are past. I would be surprised, even in a bad market, if Apple isn't trading at $120+ by year-end. A few key things today include 1) the subsidy model is alive and well as evidenced by VZ offering the iPhone 6 for free with a trade-in (they need Apple for the data usage more than they need to reduce the subsidies), 2) Apple Pay is going to gain a foothold quickly and has not been included in any analyst models, so upgrades are on the way, and 3) the iWatch can be a margin enhancer with the higher priced models and while magnitude and pace of adoption is unknown, I want several for family and I am sure others will want them too, especially those interested in the health and fitness utility.
Seems to me they had a reasonable quarter considering I/O pricing, but their guidance is quite bullish with projected higher volumes, higher prices, and lower cap-ex expenditure. Perhaps this was the trough quarter? GLTA
I wouldn't waste any time worrying about what a sell side analyst has to say. They may be short. They may be wanting to get their clients into VALE at a lower price. Buy side and independent research is the only research of value. That said, I really don't care what VALE does over the next few weeks or months. I believe it will be $25+ sometime over the next couple of years and that's good enough for me.
You are clueless about how stocks trade. The substance of what they presented today was spectacular and the stock will trade at $120+ by year-end. Yet, there are those who sell on the news and those who may be taking profits for the Alibaba IPO. But, the idea that the new products are not going to generate substantive additional profits is absurd.
If I'm not mistaken, they go ex-dividend tomorrow and we are in a sell the news market at the moment, so I would think it would take a very strong report for them to be green tomorrow. For me, I will be satisfied if they say nothing that causes me concern re: the viability of the business model and that they are making progress with the BRY and DVN deals with an improving pay-out ratio. Otherwise, I will enjoy my monthly distributions and enjoy the show. What the stock does is not my primary concern. GLTA
U r missing point. If KMI is no longer an MLP in the coming weeks, then, the funds with charters to invest in MLPs will reallocate funding. It's just a fact.
It's against SEC regulations to "manage sales," yet that is exactly what Apple does every year at this time. They only produce the number of new phones they need to make their current quarter target. If they were to produce more and have orders for them, but not ship just to save the sales for the next quarter, that would be illegal. So, the fact that they are unable to ship all the orders is expected. I suspect that will be off backorder by the end of this next quarter........................unless they want to save more sales for the next.
Of course, you could be right. However, I believe the current price is a reasonable trade into the Brazilian elections and ahead of an anticipated rebound in IO pricing later in the year associated with higher seasonal demand. A weaker Real and the VALEMAX ships now being approved for south China ports should also help. Such an enormous short interest also provides some nice upside volatility with any good news (and there hasn't been any of that lately). So, call my crazy, buy I bought 120,000 shares for a trade today at $12.30 expecting the stock to rebound in the coming couple of months by 10% to 15%, if Roussef loses the election it could be 20% to 25%.
Actually, most of these large deals are followed by a down period of 3 to 6 months, likely due to all the stock that hits the market after the deal closes. I like the deal though and, if there is weakness in the coming months, I will gladly buy more ABBV.
Some thoughts. First, the short thesis is that China is heading for a hard landing in 2015. The latest data out of China over the past couple of months challenges that thesis. Second, all the talk about the iron ore sitting in ports as financing collateral putting continued pressure on the price is also not proving to be true. The price has actually been coming back up into the $90's in recent weeks from the mid-$80;s suggesting this thesis may not be true either. Third, considering all of the short volume in VALE, the moment the thesis shows cracks for shorting, it's a race to get out first because, if you don't, the price could be much much higher before you do with so many shares short.
Nothing like a little good news out of China to get VALE headed up. If it becomes apparent that China is on the mend and not heading for a hard landing in 2015 (current thinking), the shorts will start covering in haste.