Look at their balance sheet man. If you want to own an oil commodity stock, buy CRZO. Very good assets, much better balance sheet, and better management team. Wilson was just playing games for himself at the expense of stockholders. He did a great job with Petrohawk and made himself and me a lot of money. Unfortunately, his magic ran out when oil took the plunge and the he overpaid for recent asset purchases that so far have proved to be very expensive to develop. The next conference call will not be pretty.
Anyone follow ZAZA? Nice move this week. It was one of "DEEPSUBS" picks although I think he went bankrupt with HK since he claimed to have over a million bucks tied up into it.
Were talking about HK's oil production hedges, not brokerage activity. Maybe you should surf on back to the deep seas and disappear since you seem to have the smarts of a mermaid.
Oil is going to sub 50 so be careful about buy the shale oil. HK asset value has decreased to the point where their credit line is in jeopardy. Their Utica property is virtually worthless at this point since nobody wants to expand gas drilling and New York has now banned fracking drilling. Hk will certainly retest the 1.60 area IMO.
I am not sure how binding those hedges are. The real problem is when new hedges go on market at sub $50 since HK has always had to enter hedges well below the many other better financed companies such as CRZO. That is when HK will be in deep deep trouble with their lenders and I suspect that is when Wilson will be forced into selling assets which will eventually turn HK into a pink sheet stock. I hope to out by the end of next year regardless of the stock price.
What makes HK any better off then the others? What do you think their cash flow is going to look like next year? Are their current hedges even binding? What price will new hedges be at, under $50? Everyone needs to pay attention to these kind of questions. Try calling investor relations with these questions and find out for yourself, the answers. THEY GIVE NONE.
Dougie...YOUR BACK. But why buy oilys? Going no where fast. Buy the airlines for the next 6 months. Let the continuing dive of oil (going sub 50) work to your advantage. I bought AAR at 32 and still holding out for 60. Traded it several times when it was 15. If you really want HK, wait until it is back to 1.60. That might make for a good trade entry level unless the company has put out perilous news. Personally, I think they are going to begin selling assets just to stay afloat. I also think that the institutional holders demand that Wilson speaks out as to what $50 oil will mean for the company going forward. I am still holding my 40000 shares buy am prepared to sell for a loss if the price ever sees 3 again. That would at least put another $40000 back into my accounts. Merry Xmas to you and welcome back.
No offense Pfze...I also am retired and invest/trade to enhance retirement funds. Just asking why buy high when you know the price will retreat? Plus, the macro conditions are extremely weak to buy any oil stock at the moment. Good luck on your trades. I am currently trading the airlines as a contrarian play on oil. Done very well with those trades so far.
And you are already in the red. Why not wait until sub 2 again? You must know that is where it is headed as soon as oil retreats again.
Good post 93...I also bought my 40000 shares, along with several trades, because of Wilson and I assumed oil was a save haven. Obviously, I was wrong on oil and so was Wilson. Over time I have lost my zeal for him do to his ego and lack of production gains while amassing huge levels of debt. Now I am afraid that core assets will have to be sold in order to maintain existence. HK is now worth far less then I had projected a year ago. I always felt (and many posters called me a short with my comments, but screw them) HK was only worth $8-10. Now, I think it is worth 4-5 at best. Unfortunately, my cost basis is around 4.50/per share. I will not buy any more even at this level as I think HK will go back to 1.80 after this brief respite in oil prices ceases.
Your correct. With oil going to 40, who cares about production. I would rather see HK shut down all drilling efforts and only pump existing oil wells.
You excited? Only .07 more and you will be back to where you were 5 days ago. Amazing how 2 is now the point where everyone gets all ogle eyed.
Yep...Looks like short covering in the oil market but I believe most still see oil trending lower so any gains in the oils will most likely be short (sorry for the use of the word) lived. Great trade for those who bought under 1.80.