I thought the merger was to include payment of dividends up to closing and $27.25 cash. I am confused by the recent press release about the merger closing being soon enough to affect the dividend payments. The stock price should be higher if the merger is to close as soon as early June this year. It must be the market is expecting the merger to take another year if ever to be approved despite the company press release indicating a likely early closing of the deal.
I reviewed at one website litigation costs. I think that all PW is on the hook for is the about $2.1 million for their attorney's fees. This is about $1.25 per share my estimate. The rest of the court ruling is to come out next week on April 29th. As for court costs, I have no idea except I thought that is what we pay taxes for this service and it may be in regard to cost of going to trial. I think the Judge went by the history of PW and the ruling had nothing to do with law. I am very disappointed and I have no idea how the rulings could be appealed. Assuming that the company was accepting being ripped out for a long time does not make it okay. Maybe a Class Action Lawsuit against the Railroad by PW could be another idea. Any ideas? This stock used to trade at $8 to $9 and if they give up the litigation it could return to $8 or $9 -$1.25 = $6.75 or $7.75 if the April 29 ruling is more reasonable to Power REIT.
The next question is who pays the lawsuit costs. The railroad started the case and all the rulings are not yet in expect the one that PW lost big time. The railroad started the litigation to prevent PW from going into other businesses. I would assume this part may be in favor of Power REIT. From the decline of Power REIT, it could be that the lawsuit costs are priced into the stock taking a lot more than the PW lawyers fees out of the stock.
The company is too small to continue the lawsuits and the only hope is for it to sell itself to another REIT with deep pockets and better lawyers. The might be able to liquidate the Railroad and keep the remaining businesses. The railroad may be happy to end the litigation and not face a better equipped legal firm.
After the big drop in the share price, it is possible that shareholders will sue the company regarding the lawsuit costs. Usually after a big drop in the share price, a lawyer finds a reason to sue. Any lawyers out there?
The Railroad lawyers in charge might start feeling the heat as the costs pile up and the railroad income declines. Coal and oil shipments are down and so are profits. I think the Judge will need to have an accountant help figure this one out. I can not see the Judge accepting either parties numbers. I would expect that some of the upside movement is short covering. I do not know if the Judge can ask the parties to settle and suggest terms to avoid ruling on the case. It would be an easy out for the Judge. Any IDEAS??
Nice Discount, and you will not get indigestion from GULTU just a lot of gas income instead of a lot of gas.
At least they found more gas than in a 2 liter bottle of coke. Wait for the next well to come in and maybe we will see some income to buy a coke if you have 100 units and get your first $1.
The Highlander Acreage covers a huge area. How many wells would be drilled to bring the entire area into production? Also, what price is the 1 cent per well based on $3 per MCF??
If the price doubles in 3 years, the value of highlander production goes to 2 cents per well.
Also, there still are other areas where there could be successful production. I think investors are discouraged by the lack of income. Also, I have not receive the Trust Tax Information yet. Some Unit Holders may want to dump this just the lack of timely tax information. It makes taxes a pain and costs more for a paid preparer and you get no income to foot the bill. FCX is trying to raise capital to aid in the drilling costs and this may kick in next year. So, we should have to be happy with 1 or 2 cents a year until then.
I still hope for the best, but I am afraid that FCX could buy out the Unit Holders early on the Cheap by slow going with the production increases..
I confirm that Lesser has been adding to his holdings. He did so at very attractive prices. His purchases could be only because prices are attractive. Try to buy at $8.25 and you may have difficulty getting any order filled for more than a few hundred shares. However, Lesser manage to buy a total of 800 shares around $8.25 in two separate days. Today, shares seem to be holding a $8.25 and few if any shares traded. If you can get it at $8.25, PW is likely a very good buy now at under $8.50.
Sentiment: Strong Buy
Stock Analysts like a focus so they can determine value. After the lawsuit is settled they Railroad might be sold as part of the settlement. After the settlement the company would have a focus that is popular among some investors. The Railroad could stay a part of the group if no settlement is attractive.
You have the reason why the trading has dried up with subnormal volume the past few days.
Maybe we will have a ruling on the case soon. My personal feeling is that PW may win on some issues. However, PW might not win all the issues. I doubt that the Judge will kick the Railroad off the property, but he give them 60 days to settle new terms. Some of the sale money might have been directed to betterments and maintenance and it is questionable that all of it is recoverable. So I would expect a split. I agree with one thing that is the REIT should have had a look at the Railroad's books. The failure to allow that is the fundamental violation of the lease. No books available or needed is wrong. So, I expect that they would be able to raise the rent at a minimum so it could be worth several times the old rent plus possible back pay from when the lawsuit started or more.
If PW wins the Railroad could try a higher court. The Stock is expecting no win for PW but not a total loss. It may be a safe bet that the RR pays the attorney fees for PW and tries to walk away with a partial victory. Any ideas? Lawyers out there???
Management cut the work force and valuable employees that were key to their success were pushed out last year. Since last year the stock is down about 50%. Maybe it is time to push out the management and rehire employees that are the key to the success of the company. Until there is a management change I would sell or avoid this stock. I think the stock will hit $20 before it hits $40. At $20, there will be a management change.
Sentiment: Strong Sell
Try to buy any of this stock and you will drive up the volume and the price. The stock seems to lack a direction and be waiting for a Court Announcement of the Judges Ruling. If the Railroad loses they could try to kick it up to the next higher court. Is there any possibility of more court time? Any Lawyers out there please comment.
There are no sellers today as the well has run dry for buyers. Please post any settlement news. I would expect the company would stop the stock from trading and make a trading halted announcement for any court settlement. However, I did not see one today.
Opposing Groups should realize that without a deal they have no leverage to gain concessions for their agenda. If they want too much there will not be a deal and they will get nothing. Both the public and the Companies have to benefit from the merger for it to be approved. I hope with Solar Energy Groups Moved to help approve the deal that it will be in the public interest to approve the deal. Some Politicians may be still against the deal and I am not sure if it is corruption or wanting to be noticed in the news. Certainly, I do not think that they are really acting in the public interest as without a deal the rate payer gets stuck with a less efficient utility and no concessions to help pay the bills.
What is not spend on some items might be recovered if any value remains. Expensive cars are not good investments, but some homes are. Some of the companies will likely have to pay back something.
It will take years and the legal cost might limit the recovery. It will likely be much less than the wasted amount.
I think that the up front legal costs are the drag on the stock price now. The company will incur legal cost for long times before any recoveries occur. Several years from now the stock could be worth $10 or $15 or more assuming it can survive. The shorts are after this company and I hope that the Government is able to keep it from going bankrupt by wise actions to protect the government's holdings and public shareholders too.
The CEO and his Lawyer Wife may be gaming the system with the company as the current price does not indicate that the Lawsuit will yield positive results. After, they pay the Railroad's Lawyers Fees and the CEO's Wife's fees there might be little left for Shareholders. The CEO wants to keep it going for more billable hours for his wife I am afraid. It is a risky buy unless you estimate for a possible loss in the Lawsuit. Today's price may not be low enough to include a possible loss. If they lose the stock might over react. Any help with cost analysis of legal fees please post as a reply or to the site.
The bonds pay less than 7% at the face value I assume. However, you pay only $850 for a 1,000 bond. The bond paid $60 interest on the face value of $1,000 or 6% and today the same bond is selling at $850 now still pays $60. So the interest yield on the bonds is now $60 / $850 X 100%
or about 7 %. Also, the stock has been since marked down by more than a 15% discount.
One thing has been consistent with American Express over the past few years. Executive Pay and gone up to and at the same time Customer Service has gone down. In order to maintain earnings, the Company cut customer service staff to same money while at the same time increasing executive pay to levels beyond reason. If executive pay was under $10 million, it would have been easier to maintain staff and per share income. I dropped my card and any accounts dealing with them. The cards are not worth the cost and any savings accounts with them pay much less than competitors. Card cost went up with increasing Executive Pay and interest rates went down with increasing Executive Pay. All this money came out of my pockets at the same time service got worst. The Executives should be replaced and most of the pay incentives should go to the Customer Service Representatives or to hiring more people in the USA. Most Companies are going similar things like this sucking every last dollar out of the staff and giving it to the executives. This is Obama Economics rob from the poor and give to the rich. The rich kept Obama in the White House to continue with things like Obama care to cost the middle class more while companies profited on reduced health care cost.
There is an article about CRC in this weeks Barron's. Some of the Bonds are trading at about 85 cents on the dollar and now yield 7%. This is indicates the company may have difficulty repaying the debt. However, the company could sell more shares to buy back some of the debt. This would dilute the existing holders upside but keep the company financially sound and enable it to invest to increase production as prices start to increase later this year. Another option is to issue convertible bonds to repay the debt. The bonds would have a lower interest rate and again would dilute share holders. Another possibility is for OXY to do a deal to buy back some of the debt and swap it for shares with the company. This is dilutive, but it protects OXY as the company still owns a lot of CRC stock. The want to sell or spin off the rest of the company so this might work.
This stock is risky, but the Hedge Funds should help push the company to increase the share price. Selling some resources might work to if they get a good bid relative to the debt. Any ideas? Rumors??
If you are smart enough to want to buy stock, you should be smart enough to use a limit order. The idea of investing is to buy low and sell high or higher. It is difficult to get a low ball limit order filled with EGAS. With a limit order, you are looking for fewer sellers at or under your low price. It limits the possibility of filling the order unless the price is dropping due to bad news and more sellers come out with lower prices. If you place a market order you will be able to get the order filled and often at the highest price of the day by your discount broker. A market order will go a the current price asking price if all the shares needed are available at that price. If more than the order is not available at the asking price, they will look for the next seller at a higher and higher price until the order is filled. If the list of sellers is exhausted, you will have to complete your order on a second day or week. My advice is to place your order early in the morning to allow more time for it to get filled. Using the last few days of trading data should help you set a price. This stock is thinly traded, and to amass anything like 1,000 shares or more is difficult with only about 30,000 shares traded in a day.
Very few shares are available to trade. This is a very thinly traded stock. I bought a some what larger order than 100 shares and it was good until cancelled. The order took 2 days and cost me 2 commissions. The price was set too low to interest enough sellers in one day. Any larger order of 1,000 or more shares some low volume days would upset balance and increase the price. I think the float is too low for must institutions to buy this stock. But, a small mutual fund might buy this only to see it on the books for less than cost. Large funds would avoid having a large loss on the books and no dividend to compensate. I doubt anyone other than an individual would buy this except if they have a hot tip on the court action. We are far from that happening. Are you trying to spread a rumor?