The possible acquisition of assets to diversify the company was discussed on the conference call. NKA indicated that asset prices might have further to fall before an acquisition would be attractive. i'm assuming shares would be issued to fund any acquisition, but the acquisition might be accretive from day 1 hence 'dilution' might not negatively affect the share price.
i think we had a bad quarter and the business structure needs to be revisited, but I have not heard anything from the company that indicates NKA is in dire straights.
I have not yet researched the 2013 year end 'restructuring' that NKA undertook. [more on that later if informative/useful. it is discussed in the latest or last 10Q]
I believe that with a 'tangible' book value of $5-6 and $100M in debt, worst case would be a doubling of the outstanding shares to raise capital to retire debt. New share price would be around $3 + whatever the market gives NKA for a new dividend
going forward, we got here due to NG in backwardation (price keeps going down like in a depression). not sure how to solve that other than better hedging and diversifying the business to not be a 1 trick pony
The gas must be transported and transferred (stored), so NKA is integral to the supply chain. problem is that gas purchased yesterday is worth less today (capital loss). the market will correct this as it is unsustainable. question is, who will be the last man standing? NKA restructured in 2013 (see 3Q 2014 10-Q). i will be trying to understand if the business model was flawed, or if these conditions should have been anticipated and hedged (management discussion)
tangible book is around $5. stock price is unwarranted, but management is unable to provide guidance so have battened down the hatches until current quarter performance is clearer. Carlyle Group owns near 50% of outstanding shares, so little likelihood of too much dilution (if any)