The truth is that global warming models have failed as temperatures have "paused" over the past 18 years. Most alarmists deny that the pause has happened. The serious scientists acknowledge the pause and claim it's because the missing heat is hiding somewhere in the deep oceans. Since there is no good historical data for deep ocean temperature this is sort of a "dog ate my homework" type argument.
They funny thing is that that the longer the pause lasts, the more dire the predictions get. The data doesn't matter to those with the global warming "religion".
The ocean is not even acidic. It's become less basic by a trivial amount that can barely be measured. Funny how people who actually know so little think they are so well informed.
Higher co2 concentrations are good for plants. Parts of the world are getting greener as a result and more CO2 is getting absorbed by plants. Higher CO2 is one reason why crop yields are up. Serious scientists (not profiting from the hysteria and related govt grants) acknowledge that global temperatures (at least based on the undoctored satellite records) have been statistically flat for 18 years. Co2 is a greenhouse gas and does cause some warming, but the effect has been massively over-exaggerated. That's why 99% of the global warnings models have been consistently wrong. Of course many people will believe what they want regardless of the actual data.
If anyone wants intelligent discussion rather than hysteria (most people don't) I would suggest the wattsupwiththat site.
The preferred is a speculative issue. It's not a sure dividend, but I doubt they will defer it this year. The issue was trading well above 12.50 when the secondary offering was announced. It traded down to the secondary price. Seems likely to tend to drift back up.
The ENRJ common is junior to the preferred. A lot of ENRJ common got distributed from West Coast Asset Management recently to large fund holders (see recent filings). That's a trick that hedge funds do so that the shares can be sold without the need for further SEC filings, since the individual holders each own below the 5% threshold. Probably more risk owning the common than the preferred over the near term.
ENRJ-P is a speculative issue, but over the near term a dividend deferral is unlikely. The borrowing base issue was resolved. They have raised almost 7 million from the 3.1 million offering (common, warrants & preferred stock), the real estate sale and the just completed ENRJ-P offering. They didn't defer the dividend when they were in much more dire straits
The best thing going for PRGN is that the shipping business is so miserable, that the banks would rather not be in that business. Its not like they want to seize the ships. That's the last thing they want.
Disc: no position.
Agree that they should do a reverse split. They should also try some type of swap offer to try and get preferred holders to accept common stock (not sure I would unless it was a good offer).
Considering they just raised 150 million in the last couple of months, liquidity is not a near term concern. At least not for 2015 and 2016. 150 mil credit line is undrawn. The liquidity concerns are further out in 2017.
Given their hedging, the revenues for 2015 are not going to be all that much lower than 2014. They have some cash and are deferring the preferred dividend to conserve cash. What they need to do is work with their lender. Most likely they will pay some fees and be required to use cash flow to pay down the credit line until they are back in compliance with the lowered borrowing base. Preferred holders would not accept 3 - 4 per share. The bank would not accept 80 cents on the dollar. Natural gas may yet rebound over the next couple of years.
The new preferred stock is essentially common stock with some added protection. It doesn't pay a dividend and converts to common.
As I predicted an article yesterday shows power prices starting to spike in the Northeast due to the cold weather.
Deep cold sends energy prices rising in U.S. Northeast
By Wayne Barber
Chief Analyst, GenerationHub
A blast of bitterly cold temperatures has driven up spot power and natural gas prices in the Northeast, according to data posted Jan. 7 by the Energy Information Administration (EIA)
New York City showed a spot power price of $120.67/MWh and New England had a spot power price of $101.87/MWh. The Mid-Atlantic wasn’t far behind at $81.83/MWh, according to GenerationHub.
The Mid-Atlantic recorded the highest increase in spot power prices from the prior business day at almost 107 percent.