another great call - up 35 Cents on the short already - giant gain - I love this company
I guess it is not Obama's fault that you didn't make it through elementary school obviously. So at which price was your great $9 stop loss executed this morning ?
this won't help shareholders - I am shortin here
In short: jrad52 is right, you are wrong
When there's no cash to be distributed because of market conditions the MLP obviously can't make a distribution
And WHO should pay you your "guaranteed minimum" by the way ? Even if they would be in breach of contract obligations it wouldn't change anything for unitholders - if they were to force a firesale of the company's remaining assets you would most likely get around $2 per unit or less.
Given the latest results it was already pretty clear that the distribution was not sustainable - actually only the magnitude of the cut is staggering
not sure about your mental health - the shares are down 50% in pre-market and I would bet them to go even lower after the start of the reguar session. Why holding the shares here with the dividend mostly gone and the coal market a mess ? It doesn't make any sense.
They simply don't have the cash flow to pay out $44 mln anually anymore - actually they didn't have it the last few quarters either but payed nevertheless.
The only good thing is the low debt balance which prevents the company from near term bankruptcy risks but the remaining assets might be actually cash flow negative at current market conditions when adjusting for maintenance capex requirements.
Just like CLF recently the company will most likely be required to record a major asset impairment charge to reflect the lower value of the properties at current market conditions.
With the 15% distribution yield gone I don't see any reason for investors to stay with the units here. The coal business remains a complete mess and might stay depressed for many years to come. It will only take a few more quarters for some major US players to file for bankruptcy protection and this might still happen to Rhino if business conditions won't improve dramatically.
you must be joking - do you still think the assets can be sold at $14 per unit at current business conditions ? Actually a huge impairment charge might be justified here given the state of the coal market. And take a look at Boardwalk Pipeline earlier this year - and they just decided to redirect free cash flow to pay off debts while Rhino just has NO free cash flow to make those huge distributions anymore. BWP was down 50% the next day - now imagine what might happen to the Rhino units tomorrow.
Given today's announcement I would expect a huge impairment charge at year end just like CLF recently announced.
Actually the units need to trade at $4 to return some measly 5% annually going forward so there will be more downside tomorrow.
even if 800k people would be infected Versar won't profit here as they are not in this business.
This is outright dumb - the company reported nine month bookings:
for a total of $27.5 million in 2014 so far. I don't see any reason to get excited as the number for all fo 2014 will still be lower than already achieved in 2011.
you also own GPRE ? What about REGI ? That's what I call diversification...
GPRE won't buy back a single share at current conditions as the stock looks overvalued here - analysts estimates are toast.
yeah - you are for sure a huge brain. BIOF is now in the home building business and has nothing to do with ethanol anymore. And I am taking the bet that PEIX will end up below $9 given the carnage in the ethanol futures today. Added another 5k short for 50k shares now.
ethanol is down again today and this won't change anytime soon given the oversupply situation in the market and lower demand every single day. If things don't improve very quickly (which they won't) the company's position will weaken to 2012 levels. With the demand issue somewhat new to the market things could get really brutal.
why not shorting here - there's plenty of money on the table even with the stock down 70% from recent highs - given the market conditions in the ethanol market in the short to medium term coupled with poor management decisions it is hard to figure out much value in the equity. In Q4 the company will be burdened with full production costs but won't be able to sell even 30% of their output which might lead to a cash loss of more than $40 mln
anyway - the shares look so poor even in today's rather strong market I couldn't help and just added another 10k short. Now 45k short.
the downgrade might put additional pressure on the shares today but is nonsense as it is based on automated balance sheet screening which of course is outdated data.
I shouldn't need to respond to my own posts if I had another id - don't you think ?