No offense zoom but the debt conversion announced to date is a drop in the bucket when compared to total debt and 43 million in cash is equivalent to a petty cash fund for legit oil companies. All your numbers are correct but in the end, Wilson accumulated way to much debt with limited resources in the future to significantly increase cash flow. What you did omit was the growing number of shares outstanding which dilutes any sale of the company down the road, A VERY LONG ROAD. I am now looking to exit anywhere between 2-3 dollars/share as I do not think that anyone will pay more than that in the next year and a half. My long term holding period has already been past and I will not hold out for another 2-4 years.
Come on Joe...your stooping down to the idiot level with that kind of remark.
Morning Joe...As you know, I posted that I would be in hiatus land for awhile regarding HK but here I am. I know that any posts that are negative regarding HK are seen as taboo on most message boards and I agree that most such posts are from idiots, however in the case of HK at the moment, it is clearly difficult to see any positives from the company. What really hurts is that HK spiked to 2.25 when oil last touched 55 and know it has passed 58 and we are at 1.59. Wilson is discounting the value of the company virtually every other day with the token reduction of debt with share dilution. Thru this whole process to date, HK's releases have been stone quite as to comments from management. If all these moves were so positive to the balance sheet, then I would think that Wilson would have some statement as to that affect. His silence tells me that ALTHOUGH THEY ARE PROBABLY DOING THE PRUDENT THING, the steps are in reality, crisis management moves. Todays stock action tells the whole story in the short term and I at am a loss as to where this company ends up. BEFORE YOU POST BACK, I KNOW I SHOULD JUST SELL ALL MY SHARES AND MOVE ON BUT AT THIS POINT UNLESS THE COMPANY GOES BANKRUPT, WHICH I DO NOT BELIEVE WILL HAPPEN, there probably is not much more downside risk in the stock price unless all the conversion shares get sold and then it truly will be a penny stock. Hopefully, Wilson will open up a little with his commentary next month and not just thumb his nose up to the analysts and stockholders. Still long but very frustrated on a day like today where virtually every oily is up nicely and we are in the red. What the heck happens if oil goes back to 50?
Getting a little base development at these levels. I am looking for 15 by end of 2016 and 25 by end of 2017. Obviously a long term position for me. I will add up to 7 over time assuming the price action goes north.
Hey Dougie I see your back into HK. I am taking a break fro the HK board and since I still own some shares of SD, I lurk on their board once in a while. Now remember, don't get to over zealous on the HK board regarding HK because they still have a very bad looking balance sheet and the stock dilutuion seems to be never ending. Still got my 40000 shares but will begin to unload some in the future (even at a loss).
PF...Looks like HK is dead money at these levels for some time so I am putting my shares in hibernation stage and try to forget about them over the next couple of months. Nothing more can be added about this stock. I will occasionally peruse the board for intelligent thoughts that you and a few post and good luck with your trades. Not sure how long you will stick with HK so you may be long gone (as Ernie Harwell used to say) before I get enthused enough over HK to banter in posting conversation. Adieus for now amigo.
HK is now trading based on its balance sheet and not on the price of oil. Based on that, I see HK going nowhere fast. Wilson better have more to say then just he never saw oil going to 40. Good morning to all and have a good week.
Yes, my thoughts... "asset sales" as you state not only will bring down debt but it will make HK a non entity because what is left. Once Wilson starts to sell assets it is so long HK so all your other 14 points become mute.
Depends on the REIT as most investments are. I own a Fidelity REIT fund in my IRA that has done well over the years. I have the distributions reinvested.
Good question. The conversion of debt is a pittance to the overall 3.5 billion in debt they carry. If Wilson had any inkling that oil was going to sub 50 he never would have extended the balance sheet to the point he did. He put all his eggs in 90+oil which he assumed would provide sufficient cash flow to eventually pay down the debt and make HK more valuable of an entity. Ouch, he got caught with his pants down. Some here think his latest moves have been a sign of good management. They may be correct but it also could be a sign of crisis management. As PFZ stated before, none of us sit in management or board meetings so we do not have the answer to that question. Do I expect a bounce in the stock? Hell yes, because that is how a market works. 2015 will look okay because of the hedges in place. The unknown is 2016 and beyond and right now I see that 3.5 billion in debt bull's-eye and wonder how Wilson is going to deal with it. I know some posters will call me a short and ask why I don't sell my shares and when I see the pathetic performance of the price movement I have to wonder, IN THE LONG TERM why am I still in. I am confident that we will see 2.25 again. Oil must get higher than 65-70 for anything higher than that in my opinion. From now on, I will let others debate where oil is going.
PF...the exchange offer wasn't suppose to be completed until middle of month. Not sure what middle means for this scenario but I am not so sure the continued selling is do to Franklin. Not a good scenario if you are correct. Boy I thought about moving some cash from the bank to buy more HK for a trade but I am not at all sure what is going on with HK so the best policy might be to stay put. Bond holders are taking a bath apparently. For me the story just gets cloudier by the day. Sorry for posting when I said I was done for the week but had to say something.
PF..Patience is very difficult when you see so many oils making nice gains and HK just waddling in the mud. We all might have high hopes for HK down the road but in the short term it is disheartening to accept the fact that HK is also in the worst of breed category in the short term Enough for the week so post next week.
No argument there. However, many large position holders, like myself, bought into HK for a potential buyout as Wilson had a terrific history of managing a company for such an event. With each new share issues, the value/share is diluted if and when the company is sold. For the many traders of HK, this issue is mute.
There's your new base...."On April 7, 2015, Halc�n Resources Corporation (the "Company") entered into an exchange agreement with two investment funds advised by Franklin Templeton Investments, each of which is an existing holder of the Company's 9.75% senior notes due 2020 (the "Holders"), pursuant to which the Holders agreed to exchange an aggregate $116.5 million principal amount of such notes for approximately 65.5 million shares of the Company's common stock, resulting in an effective exchange price of $1.78 per share. The exchange offer is expected to close in mid-April 2015, at which time all interest that accrued since the prior interest payment date in January 2015 will be paid to the Holders"