Seemed like he was OK with burning 8 million a quarter on litigation.. To me that's a waste of time and money. How on Earth are you going to have the staying power against a Microsoft, Samsung, Apple etc..ridiculous strategy. They should sell the patent portfolio, stop the bleep and use the NOL's nothing more. Instead what I heard was he was going to use the M & A to drive the patent litigation with its cash flow...waste
Forget Cramer, he's entertainment only. Do not under any circumstances trade with him..mho
First off SFY is incorporated in Texas, a somewhat more creditor friendly location. The DSC ruling on zone of insolvency tends to require an equity committee when there is balance sheet equity value and a cash flowing corpus. Notice how SFY has taken book equity down to just 48c/ share. And will be eliminated by Q3. The Board is in a tough spot, lets see which club they take out next. As a bondholder we don't want them extending shareholder optionality because it means burning cash for the next who knows how many years...Would be nice for it to work out for all...Lets watch and see...5 weeks to go at most before we know.
I guess what I'm thinking is that if the Board believes that prices will bounce in late 2016/7 than they will go ahead with an asset sale and extend optionality for the common and really the bonds as well. If they believe we are settling in to a 3-4 year low price environment, then they will save the interest expense and hunker down for the longer haul. In terms of the value of EF, I believe it likely the company has multiple offers for their best assets,(EF) which explains why the bonds are solidly bid at 25c. They won't sell Fasken regardless so its a mute point, but with every other E & P debt gaping down with no bids it leads me to believe there's a term sheet floating around with a 1/2 billion price tag on it. Just a hunch after watching these distressed debt markets for 40 years..We will see something by Oct 1, my date not theirs.
Yes..bonds are pegged at .25, which goes back to SD's question on the EF. I think the market thinks EF has significant value and worst case bonds get .25 no matter how bad it gets..Listening to calls of other companies...everyone is concentrating on the high IRR area, and passing on everything else. China cuts rates today and everything off to the races...
SD I saw it...what I believe is happening is that Swifts EF assets are wanted big time...why? because of location location location...Everyone is concentrating on the highest IRR's. I believe these guys are debating how long this downturn is going to last before they make a decision. 1 year to 18 months they will try a sale of AWP and LA at reasonable prices...if 2-3 years..they won't sell anything and file it...its a tough decision now for the Board....its pretty scary times all around...world wide deflation is setting in, and that's bad news for all of us
Good Question, I'm sure the Board is meeting this week to discuss. I think they make it, the rest I doubt, prices are still dropping and hence any JV or sale of assets becomes harder and harder, so now its survival literally with the Nov bank debt redo looming large. I'm sure Lazard telling them to file it..my guess.
Keeping you up on the debt...short paper 28-30 lowest accrued 26-7 high accrued 24-6...And the interesting part the bank debt is 90-2. eom
TD...read my last post to MS,, nothing to do with tape painting...these orders are known by 3:40,,simple MOC order....why would you think in todays market there would be buys?
MS...just simple MOC orders, all mutual funds and Instituions use it except Hedge funds generally. Nothing nepharious at all. Example Fidelity small cap energy has redemptions of 125 million today. The computer prorates a MOC order for the portfolio and sends it to the floor by 3:40..than it executes. Anyone can look at the MOC book and know there are sellers...This is trading 101 forget about overthinking it
I think, with reits being weak for months, tells us World wide recession in the works...I started buying this low 9's upper 8's...thinking its worth 11...still do, but gonna be rough ride especially if we go into a deflationary spiral. Managment knows this and I think they know they should probably liquidate this...
Maybe I should visit New Haven,, never been there. Except once in the mid 60's to watch the NY Jets play the Giants at the Yale Bowl. SFY bonds are wanted now, maybe something coming. Time will tell. Be well.
Nice, but they can't turn up Fasken fast enough, they need additional liquidity,, so in todays environment can they sell LA and if so how much, can they sell AWP, if so how much? Its end of August and we are running out of time. They are completely out of cash in Q1, maybe Q2. Where have they been? If those were not strategic assets and they are moving to a Nat Gas Fasken, Oro model, why wait until they are near death. Its the old deer in the headlights syndrome. Its a problem now and is in the future, they need to beef up management. Which if it doesn't make it, expect the bondholders to lead that charge.
Well yes they are, not unlike our SFY people unfortunately buying this all the way down. There is no borrow anymore on either stock. Talking to people in Texas I know in the industry they tell me EXXI doesn't understand or believe they are in trouble. SFY's issue is also management, they never hedged at all and never sold assets along with their peers. Now if your SFY what do you do? Try an exchange , sell assets at the bottom or near bottom of the market, keep all assets and file it...?
They are bull market players and not full cycle managers. Look at NOG, bonds are at 79, stock still at almost $5...These guys have loads more runway cause they are 80% hedged throughout 2015 at $90 and about 60% hedged through '16 at $65. Yes they sold into the spring blip, which SFY didn't. They make less in good times but always know their risk and reward. I own a few with a small short of the common down to 50c...So there's players and there's wild cats...