I think we all are expecting great things from this stock but, it may end up taking a little longer than we want.
dave, this is not all about finances or the divvy. IMHO, the sector is so out of favor that no new money in entering it. Hence, you get these type of pricing scenarios. There is all this talk about 2012 and debt but that is years away and in the oil business that is a lifetime. There is little rationality here and that is simply what you have to live with in any of these downstream MLP's until the dust settles.
It is amazing how poorly some can read. IMHO, exactly opposite is possible. If they get better control of and a reduction in their operating cost everything will be fine and there will not be a dist. cut.
dave, that is an interesting point. Something that even I had not considered in DD review.
Well said pzit, It is amazing how some will make defined generalizations without knowing the facts. Kind of makes you question everything they post. Now you have to ask yourself; is it true,or just some cockamamy facts or figures they dreamed up?.
I also averaged down and picked up another 4k. I just could not help myself at these prices. Sea Drill has already cost me way too much. Had to let it go when the divvy went and took a bad hit. IMHO, that stock is just too all or nothing for me. GlDX on the other hand should hold up nicely in these turbulent times.
Have not seen the 2017 figures. IMHO, that is just too far to guess in this kind of market. In the oil business-as you can see from current results-that is a lifetime away. I am concerned with 2015 right now and that and into early 2016 which there appears to be sufficient cash flow to keep the dist.
In general all downstream MLP's are being hit as there are simply no buyers. There is little money flowing into this sector as it is so out of favor. It is difficult for those who follow the sector closely to understand the emotional nature of the market. That often makes it irrational to us and there is no way to put a rational spin on it.
IMHO, simply put; lightly traded stock and no new buyers. Sector is plum out of favor and until sentiment changes we will have problems seeing fair value.
Amazing how Kramer goes from a bum to a hero with some of these folks. Maybe they should do some DD on him before they call him a Stock God. . Recent studies show he is wrong more times than he is right on his calls. His on the street calls are so bad he refuses to take credit for them...says it is his hired staff's calls. Claims he was a big hedge fund mgr but, refuses to open his books for public to see how masterful he is. He is entertainment.
Another sell off of over 40k shares at 11:30 AM. Somebody wants out bad. Great opportunity or a warning of future events. You make the call.
If I remember correctly oil is the biggest part of their revenue. Something like 72%. So it does play a big part but, as you eluded to in your post, they seemed to have went out and hedged heavily even though they were caught flatfooted and had to settle for mediocre hedge prices.
Actually, an interesting question. From what I understand, time is a moving target with those analyst's projections. No set date until they revise it, one way or the other.
Perry, IMHO the entire sector is simply so out of favor than little new money is flowing into these downstream MLP's There is Little or no growth projected in them. Earning will be stagnate at best. Oil is and is projected to be at a surplus to world demand keeping pricing low. As an institutions this is not the type stock you want in your portfolio. Look at MEMP, arguably the best and safest play in the group.. Even there we are seeing massive dumping by institutions. MEMP is experiencing 100k, 102k, 103k, 30k, 40k 35K share dumps doing the past few days. This is not the doings of the retail investor. This is sector rotation by funds and institutions. When this happens things don't seem and aren't often logical. One has to hold on and believe in their on DD is you are long.