patientd1, the Fed's intervention in '08 is akin to keeping a comatose patient on life support for thirty years, with every saver in the U.S. footing the bill. Maybe a sustainable recovery would have occurred if the government let the economic cycle run its course.
Explained perhaps by projections gasoline demand will subside after Independence Day as WTI seeks parity with Brent due to decreasing domestic crude production?
Many of the technical indicators can be viewed using the Interactive Charts option on the Summary page for VLO or any stock right here on Yahoo! Finance. Then if he or she doesn't know what it means, google the term for an explanation.
Okay, all of my math was not okay. May have been affected by the smoke and mirrors calculations (on both sides, I must admit) for the property tax appraisal protest hearing in which I participated Friday afternoon before returning after the market closed to discover XCO had crashed.
The 100% dilution comes from current shareholders being wiped out in favor of debtors (i.e., the Chapter 11 proceeding so many have been barking about but I heretofore did not see coming).
My math's okay, just need to get my days straight. Opened at $1.80 on Wednesday and closed at $1.21 on Friday. (1.80-1.21)/1.80 = 33%
100% dilution works by transferring ownership from shareholders to debtors. Assets - reduced liabilities = higher share price. Wilder wins, debtors break even, we lose.
Word leaked out John Rynd returned John Wilder's call to compare notes on restructuring a company under an overwhelming debt load by totally diluting current shareholders.
First, sure, someone is snapping up bonds today to exchange for disproportionate amount of equity in September.
Second, are you sure those two million shares were not to close out regular session trades?
What's the difference between 100% dilution and Chapter 11? Hint: ask HERO shareholders.
Ouch! Today was follow-through. 33% of shareholder value destroyed in two days. Only 77% to go to offset the board's goal of 100% dilution.
Yeah, $200M in cash and $1.2B in debt they won't be able to repay as debt covenants are violated and the balances become due.
Where do you get this "without debt"? The restructuring term sheet states:
"New capital raise of first lien debt with a maturity of 4.5 years and bearing interest at LIBOR plus 9.5% per annum (1.0% LIBOR Floor), payable in cash, issued at a price equal to 97% of the principal amount. The first lien debt would consist of $450 million for general corporate use and to finance the remaining construction cost of the Company's newbuild rig, the Hercules Highlander, and would be guaranteed by substantially all of the Company's U.S. domestic and international subsidiaries and secured by liens on substantially all of the Company's domestic and foreign assets. The first lien debt would include financial covenants and other terms and conditions."
The Ford family's fortune was in F shares. Don't get me wrong, I won't drive anything but an F-150 and bought those $2 shares, but major stakeholders and retail investors must have a common (no pun intended) interest to arrive at a mutually beneficial outcome.
Just read an article on the demise of GoFrac and thought of WLR's foray into the oil field services space.