Selling KOG in a IRA at $15 plus makes more sense than keeping it and getting only $13.90 later when the merger takes place in the 4 th quarter? Why accept a lower price later vs a higher price now. That makes no sense to me if selling in a tax sheltered IRA.
I know it was/is 0.177 shares of WLL for each share of KOG. If the merger was completed today with KOG at $15.46 and WLL is at $85.68, KOG's share price is worth more than WLL share price (85.68 x 0.177 = $15.16, thus at the same time today KOG is worth $15.46 which is $0.30/share higher than 0.177 shares of WLL.
You could sell KOG today and buy more shares of WLL than you could if you waited for the merger to happen.
You could sell KOG today and buy more shares of WLL than the 0.177 factor. Learn some math before you start claiming to be the arbitrage expert on this board. I was simply asking a question. Bottom line is that if you sold KOG today you could buy more shares of WLL than the 0.177 factor. Do the math or look at my post above.
1775Navy -- I would not sell either if there is a tax issue. My question was related to a IRA tax sheltered account where the tax issue doesn't apply. Good luck to you, and Go Navy.
I agree my question could have been better worded, period.
lex - That 30cent/share premium for KOG vs WLL is what I was pointing out before some folks got all foamed about arbitrage on the board here. Regards
I agree with Benmare75 --- Once the money runs out, this company will be gone. I honestly do not know what the CEO does to justify earning his $600k salary per year. That is a joke. I'm sure he does some daily activity, but he doesnt justify $600k per year. He could try and get a JV partner for the NA prospects and Zarat development at one of the Houston Expo shows. If there was not turmoil in NA I think the Zarat proved condensate and gas would be developed with no real issues.
The Propsects that remain to be drilled on the offshore block look very interesting as per the seismic data. The size of the prize is what is holding this NA deal up. It is not huge, but it is a money maker. The risk with operating in NA comes in to play here. Maybe a smaller aggressive independent will see the merits of the NA deal and take a shot at it. If the 2-3 remaining prospective drill wells are drilled and come in, this could be a nice project for someone if the political risk issue doesnt sink the NA project. The offsetting fields along trend with the prospective drill wells give an idea of what type of field size may be found from the prospects. They are not huge, but they are productive and they are economic.
This is a big risk, but lets hope that the NA project gets drilled by a small operator and we see some good results. It does look interesting geologically, but not politically regarding risk. There is really nothing to lose if you still hold at this point since it has already dropped to a penny stock. The only positive is how well Marquee is doing since we got shares of their stock. They must be a legit hard working company, not like SOQ.
I agree with you benmare75. Just hope somehow a small company takes on the NA project. That's a long shot, but with at least proved and productive reserves at Zarat, it may get the interest of a small company to drill the outpost WC prospects on the NA block. Regards.
I'd love to see the Fisal prospect drilled. If drilled and the same reservoir as Zarat proves to extend up to fisal, that would get some attention to drill Hadaf IMHO. But this all depends on the risk associated with the political climate, which I do not know well enough except from the national news. I could dig into the field areas along trend to see how and what other operators are doing, and how the political risks are for the offshore region. That would be interesting in itself. Regards.
harry -- if you hear anything new, please post it as I'm interested in what gets drilled on the NA block. Regards.
I did the same today and sold 1/2 my shares at 15.36 ..... keeping the other 1/2 to see what oil does and/or how the WLL combo works. KOG is a great company, but they are still carrying a load of debt which WLL assumes. Regardless, with oil prices down and wall street looking negatively at oil companies that carry a heavy debt load.
What's the price of oil going to do from here? Any input will be interesting to hear. Regards,
Simon -- So are you saying you did sell your shares of KOG? Or did you sell just a portion of your shares?
Trade Exxon and you can make some good returns. if you bought $1,000,000 of Exxon in 2009 at $58/share, and owned it today it would be worth $1,700,000 plus the dividends would add approximately $200,000 so you would have doubled your money. That's as good as looking back at the market that folks really did not have any idea where it was going to go back in 2009-2011. Hindsight is very easy. Regards
Looking back at Exxon when it crossed or meet the 200 DMA turned out to be a great time to buy Exxon. The 200 DMA is about $98.50 now, so a great time to buy Exxon IMHO. Regards, and good luck.
Sentiment: Strong Buy
Wish we were closer to 120 ..... that's a 22% increase to get Exxon to 120. Anyone know why Exxon dropped from about $100 on Thursday to $98.35 on Friday?
In the past some of the splits (most) happened at less than $100 level. Regards.
All this new technology has and will be made available via power sources derived from hydrocarbons (oil & gas) to develop them, transport them, heat the building they are made in, fuel the universities where much of this new technology has been developed, and provided transportation for the folks who make these new devices. The golden age of oil/gas is still with us, and it is getting stronger with the more advanced methods of extracting the harder to find and harder to produce oil/gas advances. We still have 20-40 years before oil/gas is displaced by cheaper energy sources. This is the time to buy oil/gas. Like the FL says, just my 2 cents.
Exxon and the other major oils have lagged behind the general market recently, but now is the time for them to catch up, and they will. Regards.
If folks bought the dips -- Exxon at 98.36, they would be up today. Exxon dropped down to the 200DMA which is a key buying time. Look at the 100/200DMA and see how this has paid off in the past. Regards
I agree, the sale of Exxon below $100 is over. It reached the 200DMA which has been where Exxon turns and moves up over and over in the past. This 200DMA is when Buffet bought Exxon last year. Good luck.
I screwed up and sold some shares at 15.34 .... but I kept half my shares. Regardless, it was a bad move by me, period. Well, half bad, half good. Regards.