That debt is realized in the base share price. The basic driver is the price of oil, until the next earnings report. A long term investor would need to consider the impact of continued borrowing for the purpose of keeping afloat. Motley Fool dissed them. So, WLL may be in better shape then you might think.
The chart for WLL and oil indicates that we have reached an oversold condition. No guarantees. But, a reasonable person might conclude that we will experience price appreciation through most of next week. This is working out for me. Last Friday my short calls were assigned, giving me a short position. This Friday my short puts will probably get assigned, closing the short position. I like getting paid a premium for trading the stock.
I think we have seen most of the downside for the rest of the week. So, I sold short puts that will expire on Friday. I think the impact of rising interest rates has been factored into the market. That puts WLL into the trading range of $16 to $19, until the next event. Remember: Cheap oil is a long-term event. Make money on the derivative.
Oops. There will be no $50 oil this week The FED December rate hike may have been realized by the market, already. Everyone is pumping oil as fast as they can. I'd say any any price jump will be countered by a price drop. You are not going to be doubling your money for a long time.
It is a write down--just paper. It is not a happy thing, but you surely knew that they overpaid for Kodiak. The write down is appropriate, else they would be subject to overstating the value of the company. The write down will reduce their tax liability, This is not a win-win. It is more of a struggling-to-stay-in-business move. Cheap oil is a long term event. They have positioned themselves to be able to turn in an EPS of no worse than (-11) cents. This is still a risky investment.
Good volume on Friday's $15 puts (for WLL.) Some people are selling puts at $15 with a volume that is twice the. open interest. That indicates some short sellers think it will stay above 15 through Friday, or they don't mind an assignment at that price..
The buyers expect a continued plummet.
I wouldn't enter into any position until after Wednesday.
Don't worry: There is price support for oil at 40, and for WLL at 14. Of course the WLL support will have to be adjusted according to the earnings (all be it non-GAAP).
By now, anyone should be able to figure out that their investment is not going to double. Cheap oil is a long term event.
Not. The secondary + bonds paid off their lenders to prevent them from calling in their loans. A good deal for the
lenders--considering the 50 million dollar fee to JP Morgan.
Low volume: People are not very interested in buying at this price.
Low oil prices will be the rule through next year.
My $20 short calls were assigned and I was able to cover them first thing this morning. I decided that the Russian bombing has lost its market impact. So I sold more short $20 calls today. And now, they look like they will be expiring, worthless. Free money. Short calls are still paying off.