Mutual funds,that owned over 80% of BRY, sold massive numbers of shares yesterday in BRY. With the merger, this company no longer matched their fund profile so they sold out. Between now and release of 4th quarter results is probably the last great buying opportunity. Next year will be the year of Linn Energy.
For MVO to make sense, the return has to be at least 10% (return of capital) per year plus a reasonable return on investment of @6%. That equals 16% per year for the next 10 years. Factor in declining production and increasing expenses and what should MVO be trading at to get the 16% ROI ? Hint: Less than its trading at now.
The additional revenue from the C-Store acquisition should boost the stock value back up. Patience.
30 million shares outstanding + 5 million shares of new offering = 35 million shares. TA trading at $10.25/share at time of announcement. 30/35 X $10.25/share = $8.785 / share value. If its pure dilution the fair value is $8.785/share but TA is using proceeds, at least in part, for acquisitions and debt service so TA should trade something above $8.785
Two catalysts coming, finalization of merger and fourth quarter results. Patience.
ERF usually advances, consolidates, then advances some more. ERF is in the consolidation phase now, hence the sell rating. The Street will probably change to a buy rating in a few weeks when the consolidation phase ends.
The SEC does not notify the end of an inquiry, they just stop asking questions. With their approval of the S-4, I would assume the inquiry is over. There isn't going to be any formal notification.
From Sierra World's own site, their description of what they do. "Providing special focus to speculative potential mergers, acquisitions and joint ventures" . This is not an investor type rating. This is for day traders and Speculative traders.
Just think, what if a hedge fund bought an SEC staffer for chump change and than told him to just do nothing. No risk to the SEC staffer and the SEC doing nothing has crippled this stock while hedge fund guys have made millions. Just a "what if".
So the only comment Linn has made concerning the SEC inquiry has been to mislead investors on the status of the inquiry ? Nice job by Linn CEO. Maybe the job of CEO is just too big for Ellis ? Time for change ?
Yes, Linn is overpaying. It seems that Mark Ellis is determined to complete this merger, at any cost. The Linn unit holders are getting hosed while Mark Ellis is putting the BRY institutional unit holders in his back pocket, securing his position as CEO.