Read the shareholder proxy first, since you lost track of recent developments. There's a reason the share price dipped below $1: possible massive dilution. The proxy is asking shareholders to approve doubling the number of authorized shares to 780 million to allow exchanging debt for shares.
I just received the second of two decent settlement checks from separate class actions against Bank of America stemming from Hank Paulsen's brashness, Ken Lewis's gullibility and John Thain's dishonesty. BAC has deeper pockets, of course, but I will opt in if it comes to that.
Hope springs eternal in the human breast. - Alexander Pope
Granted, it has no rightful place in investing, but there it sits among the ruins. Actually, anyone buying down in the dollar range and willing to hold long-term may make a lot of money - when Hell freezes over!
Did you notice comments from a many electric power generators that the ruling is water under the bridge? They already paid dearly to comply with the standard and have no intention of incurring the additional expense of bringing coal plants back online. Examples:
"Duke Energy Corp., of Charlotte, N.C., said it doesn’t plan to change its current program to comply with the mercury limits. The company, which has closed coal-fired units at four sites since 2013 and is slated to shutter four more this year, noted that it will take time to get a new decision on costs from the lower court." (WSJ)
"For utility giant American Electric Power and others in the power sector, the judgment on the mercury rule that started to take effect in April comes too late to save the dozens of plants that already closed, or are slated to in the next several months.
'We’re not bringing them back," Nick Akins, AEP’s CEO, president and chairman told POLITICO. “Once that ball gets rolling, it’s not going to change." (Politico)
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.