I would think that if most of the new supply was being sold off it would have a very negative impact on the stock price. For weeks now, 80%of the volume has been from distribution, not accumulation. Maybe par becomes fair value over the next several qtrs. or until capex increases do to 75 oil. NOT!
Hello PFZ...amazing that so many posters still think HK goes up as oil goes up. maybe you need to explain the reasons again why HK is a dollar stock and will stay there until Wilson can so new caped that is cash flow positive, which IMO, will be hard to do. enjoy your golf.
Sorry Joe but I think you are wrong. It is headed to sub par and that is when the split will occur which will then lead to more selling I am afraid. at this time there is no support level for HK as long as oil hovers under 65 and May last for a very very long time which will eventually force Wilson to sell the parts and Hk I will be history.
Rusty..HK has very little cash. What it has is a very large line of credit which is simply more debt. that is a huge difference. HK is in survival mode and with oil heading lower it will not fare well IMO. Par is not far away and that is when management will be forced into the reverse split and then long term holders will most likely lose another fifty % do to the selling after the split. PFZ will not be happy when he returns.
Here you PF. I will never buy a spec the rest of my life. I don't care what the story is. my final spec was DWSN and they have 43 million in CASH and 19 million in long term debt. plus I was patient and bout my 2000 she's at 5. Long term hold hoping seismic work returns in a year or two.
CC....I know many of you did not want to hear what I had to say but I am a realist. I too will not sell at these levels because I believe for at least the next year HK will not declare bankruptcy. Not so sure after that as I see oil at these levels for some time and even if oil goes to 70, HK is in bad shape (they need 90 oil). I will be gone within a years time regardless of what happens to HK. Hopefully I can scratch out another quarter or two per share before I begin to sell. My fear is that we lose another 505 after the reverse split which is coming to your neighborhood real soon IMO. You and I might be the only ones left as it appears that PFZ has sold by reading his last post although sometimes I have a hard time interpreting his posts.. At least we will have zoombee reporting on all Wilson's wells although most now are simply replacing wells that are losing production. No growth, no price appreciation.
Why would you buy a falling knife? Have you looked at the selling going on, non stop with millions of shares still to be sold by the swap players? With all the other oil stocks around why did you pick HK? Is it because you could buy 100 shares for $110? You would be better off buying 2 shares of CRZO with your $110. Most of us are trying to get out of this stock and never look back. I don't see Wilson and his cronies buying at these levels, do you? And they should have a lot more info to use than we do. Hope you make your $10 though.
It has taken you awhile DSC but you finally are seeing the light. The bet now is will we see pink sheets. To be honest, with all the selling going on after the swaps were finalized, I am amazed that it is still above $1. Anyone who thinks this will even see 1.50 this year is crazy. If that does happen I will sell all my shares, whine for a few days and hope to begin trading and recover some of my loss. At least I won't have to worry about capital gains for the next few years. Good luck to all.
of?..you might as well hold all your shares thru your vacation and enjoy your time away from here. Maybe in a month it might get back to 1.30. Can it really get much lower? Have a good one. Got to go plant some flowers.
Oh one final comment. Who the hell is buying shares? I look at the volume and it is 90% red with very large sell lots. What ever happened to the "has to be a buyer and a seller to make a trade? Now I am gone.
As I stated earlier PF, I am convinced that the Board adopted this plan simply to protect itself from the ugly $1 mark. I am sure they were worried about the dumping of shares by the swap gang although they probably had no indication of what that gang would do. Heaven forbid if oil goes south of 55 again. See you all next week, got to go get a stomach scope this afternoon.
You are likely to see your $1 Joe since there are probably several millions shares to be disposed of after the swaps took place. I am convinced that management knew the fallout in the stock price with the swaps and all the other debt issues HK had and wanted the reverse split adopted so they could authorized said split after the stock blew thru a buck in order to maintain there status as a non pink sheet candidate.
So what impact do the hedges have from a financial point. If spot say averaged $50 and the hedge averaged say $90, Where does the $40 differential apply? Sorry for my ignorance and maybe I should contact IR again. Thanks PF.
After relooking...revs were 275,000 for 2014 and 135,000 for 2015. Production was up 18%. Cost/boe were 30.08 for 2015 and 35.57 for 2014. Obviously I am missing something as to how they arrive at the revenue amount. No way can it be their hedge price times production amounts. I am more confused then before as the hedge amounts do not seem to work into any equation. It certainly did not help their cash flow numbers. Got me.