Hopefully the health officials will get on this a little faster than the last run. The entire food management system in China leaves a lot to be desired. I wonder if it would be possible to transport American processed food items to our stores and thus mitigate the potential for another year of losses.
The end of cheap money is upon us so it is now or never. I would much prefer so see utilities just serving their districts and not spend money advertising a regulated product.
OGE is down about the same. Other utilities are reflecting the possibility of higher interest rates. Hopefully FE will refinnce as much debt as the market will allow before rates move up dramatically.
If the cut the dividend and refinance some of their high interest debt the share price might just rise enough to compensate for the lost dividend revenue. Hopefully the cut is reasonable and supported with a really clear business plan to improve share price.
How much dilution will be required to finance this "equity" driven investment. At 40% we will need to raise 1.12 billion. At $36/share that comes to around 31 million shares. Now 31/418 = .074. So the worse case scenario is a 7.4% dilution at current share price. Now if the dividend stays at current levels hat increases the quarterly payout by 17.05 million or 68.2 million/year. If you add to that the 60% to be financed by bonds which may in fact carry a very high interest rate investor appeal goes down the toilet. I think FE will have to seriously reduce the dividend to make this happen.
I would like to hear from other investors who also currently hold FE. I am willing to accept a dividend reduction if the result makes the 60% bond expense far smaller that it would otherwise be if we continue the current payout.
Nice call ....:) I hope the earnings for October does not send us back down. The pattern of late suggests a decline (lower highs with lower lows). I am considering taking some profits from the recent run just to average out my earlier losses. MCD had some sobering sales so YUM may also have to retrace.
With the clock ticking on the expected announcements/disclosures, I added shares today at $2.32. I'm sure the stock can retreat further but I really did not want to miss this recent retrace. I think there has been some profit taking on the part of some who were in at $0.75 to $1.15 range as that range is also in the one year time frame. I expect many will establish new positions for the next one year run up in price. I am not talking about day traders here. Even very long term investors need to be mindful of taxes and timing of sales. Once this paper clears the next surge should follow. So, be patient and rebuild your portfolio.
I agree with fasttimesgrad. Given the market may get sticky in Jan-Feb due to our ever diligent government they may well want to get a better cash position to help fund the trials and to pay the staff without giving the company away for a dime. Your original remarks are appreciated.
600 share trades don't set prices or augur future trends. Be patient as this is going to be a tough market for some time to come. When a material event occurs the volume and price movement will scream buy me now. The truth is that a material event is certainly a distinct possibility so don't try to trade this stock. Day traders will provide the liquidity to exit on strength when real events emerge.
Short shares actually increased as the stock moved from $1.30 to $3.00 so what ever moved them to short is still in place. Don't look for a short squeeze until we hear of a partnership or some very definitive positive news on efficacy.
Thank you for taking the time to mitigate the impact of disinformation on this board. It would be nice if the only thing investors had to do to validate the long position is due diligence and patience. People with political agendas should move to a board where politics provide the main course of discussion and day traders should simply trade the natural cycle of investment. No need to trade in false information. Thanks again for responding to yet another attack on the integrity of the investment community.
Why does everyone take the market so personally? If others make a profit, good for them. We all must invest according to the way we see the market. What most people fail to understand is that the eye can not see what the mind can not comprehend. The experienced investor knows how to deal with the market gyrations without rancor. MCD will move down until this October 1st issue is resolved . Even the expected dividend increase will not compete with the political game. Emotions will drive the market down just as they will drive the market up once the issue is resolved. In the end MCD is the same company regardless of these movements. Good luck to all as you trade this current market.
It turns out the MCD must have been thinking on the same lines as they are piloting an app for use this quarter. Apparently the idea was not half baked. Some day they may want to rethink their policy on listening to the ideas of customers for with the customer generally knows more about t he flaws in service than the manager.
Slangbangtowax, your assessment of Alex is right on.....Alex has always provided the calm measured approach to this board. He lifts the discussion to the higher plane of intellectual exchange without the baggage of emotional release. I too value his experience and his comments. I hope you will continue to share your ideas and experience as well.
Given the greater than expected drop in sales (10 % vs the expected 7.7% decline) I was encouraged by the last sale @ $70 + per share. I honestly looked for a significant drop. I would like to hear from the board on the merits of this after hour move and the ability of YUM to recover the lost customers to the local competition.