Actually, this is not an asset sale but a stock sale. Thus no debt transferred. also the reason that FTR got such a good multiple. they bought the stock of CT company. My understanding is that this will add equity and debt levels. This will not allow FTR to depreciate the assets of CT company. So, reported income will increase but so will taxes. FTR traded getting a good looking multiple on sale for more taxes down the road. I give it a average purchase deal, not great just more and bigger, with more risk if land line declines in use.
I disagree, your break even point is 5.25. I would state that you traded the downside from 5 for the not getting the dividends for 5 Qs. Essentially a leveraged bet on the upside for you and whomever bought 3000 of them.
Other choice was to just buy the stock, get the divs and risk both ways. I think FTR will be above 5.25 come Jan 2015, good luck.
Whomever sold those Jan 2015 calls at 5, will get 5 dividends, the .25 and upside to 5. If owned FTR at 4.75, then getting 1.00 to hold the position until Jan 2015, beside risk of not getting the dividend, looks like 21% over a year and call it a quarter. Not a bad rate of return.
I sold some puts on FTR due Jan 2014 at 5, got about $2, so all I want is FTR below 5 come Jan 17, 2014. I want to be PUT the shares.. effective cost will be $3 a share.
Cash flow is a wonderful thing. Cash from ops was 6M for 9 months , but cash repayment of debt was 6.8M for the 9 months. HTM will be cash flow positive going forward, as this 9 months was unusual. The question is just how much cash flow they will get. I estimate (very rough as HTM does not have a track record) cash ops at about 12M a year with debt repayment of 5.7M a year, so they will get about 6M a year.
They are not going to do a reverse split. Stated such on CC. They are not going to buy back shares. If you want less shares in circulation of traders suggest you buy then up...or if you think traders are manipulating price, sell into them pushing it up and then buy back after they drop the price.
I've got a few shares and if we stay in low 40s, I am going to get a few more.
I am a little surprised at the daily volume. HTM trades it's entire issued shares on an annual basis. For a pretty small stock it has decent volume, so I would guess that a few are trading it.hope the price drops so I can get a few more.
Goldman has owned those shares since 2008.
Sprott has decreased ownership, 10M in Jan 2013 to 6.5M now. I think they were the seller when HTM was stuck at .42 for a few weeks.
Vanguard is new or at least got to a level to report at 1.2M shares.
AGF has increased to 6.5M, they had 5.2M at Dec 2012.
I was hoping for a little more. They were still cleaning up old plants. Neal off for 26 days n spent $3.8M there. Salary and GA were much higher without something to show for those expenses. So, profit was a big 0. That is even with capitalizing about $2M of costs at development sites.. Guat n San Emidio. 10Q did not state anything about Guat progress or San Emidio progress, hopefully CC will enlighten those projects. Seems to me they confirmed Guat project as viable just to be able to capitalize costs, otherwise they would have reported a loss of 1 to 2 cents. I guess I would say .50 is about right. They have some cash flow and will continue to invest in projects but to really get another one done is going to take some financing or share issuance. So far the company's ability it turn a profit has been mediocre. Better than those geo companies that went BK, but not remarkable. Long term.. decent prospects but will not be a rapid rise. We spent an extra $1M in salary this Q.. lets see if we get sweet words for the $ tomorrow.
Have a few short puts Jan 14s at 5. Sure hope it is below 5 on third Friday in Jan, as would love to be put those shares with the premium discount.
May not have enough historical info.. but don't think I agree. Only following HTM for a year to year and a half but Kunz/HTM survived and company is in decent shape at the moment. There were quite a few geothermal companies that are BK.. and we are going to pick their bones with hopefully a few projects in next few years.
This is penny stock, decent value though.. but to get any major analyst or brokerage interested will be a long slog. We may get an interested driller or oil firm or friendly utility. I tend to think Prudential, that gave the last loan may become a lending partner of sorts.. we shall see.
With all the drilling costs this year and nothing in confirmed resource category, we will be lucky to break even this year on a GAAP basis. BUT the company will be much more valuable from an asset standpoint. Going to be a long haul but the path looks good... to me.
Ameritrade DRIPs the day after.. ouch 4.28. Sure it will balance out over time... but seems like the day after payment has always been UP.
Interesting part is that most (from 75m to 200M) of these shorts piled on in early 2012, Jan to may, from about 5 to 4. So, they are actually losing on the short position. the ones that got in early are still probably doing OK. As the div keeps getting paid, I would have to expect that the shorts will have to decline and buy back. We shall see.