I believe it's institutional selling, wanting NKA off their books after taking a hit and before reporting to shareholders
Shares Outstanding: 36.19M
61 % Held by Institutions
They have to put in the sell recommendation after it drops 50% so they don't look stupid? Then they'll put in a buy recommendation on a stock after it rises 50% so they don't look stupid? How stupid can you look?
NKA business model of simply storage will return shortly. Carefully watching news, and we have the following as to NKA: this morning's (and this week's) increase and movement in Nat Gas prices, stopping a summer fall in gas price, will once again cause the necessary interest in storage. When gas prices were falling since May, there was no need to store for the future. (Why store if prices are decreasing?) Prices of gas (incl. futures also) do not need to increase much for the storage need to take hold. It is happening now. Yesterday gas storage injection increased (in the US) again on reaction to last weekend's surprise Canadian cold (heading as far as the Carolinas, even Florida reached the low 40s'). As the business model of simply storage (regardless of need for a high price of gas) and meter injection/removal in exchange for payment to NKA (ie the NKA money machine returns} then the NKA share price will quickly follow. Simply on one analyst's thought of this, about 2 weeks ago, NKA share price increased about 20% in one day. Shortly Goldman and others will change to Hold then on to a buy recommend. It will be soon, and current NKA share price will be gone. Note: Communities in the US are now refusing (or protesting) utilities' new storage to be built (See today's news of Finger Lake and other areas in the US just today). NKA sitting nice with relatively new storage in great locations already built with proven outstanding operation. Also utilities this year are in hurry to convert to coal for government and cost reasons (see news on this today). We are at Hold for NKA, then will begin to buy NKA in November/December. Our NKA target by late winter is in range of $10 to $12. Our NKA 5 year target is $19 to 22. Suspension of distribution is none-event for us, as it will be temporary. Business model returning by December/January as NKA will easily show good profit again as it did before, certainly by mid to late winter 2014. NKA is an outstanding opportunity for a 5 month seasonal turnaround in share price, unlike other energy models that require exploration, etc.
Also during the quarter, we recorded a non-cash depreciation charge of $28 million related to estimated cushion gas migration at one of our
facilities in Alberta. After experiencing unprecedented deliverability requirements throughout the fourth quarter of fiscal 2014, we undertook an
evaluation of facility performance, cycling capabilities, and costs associated with maintaining those capabilities going forward.
As a result of this evaluation, we determined that approximately 2.6 Bcf of cushion gas which carried a book cost of $9.85 per Mcf had migrated at
our Countess facility and no longer provided effective pressure support. We believe this migration was detected as a result, again, of the record
winter withdrawal at the facility.
Accordingly, we have recorded the $28 million depreciation charge as the best estimate of migration, using information currently available. We
continue to gather additional engineering data to evaluate performance capabilities at the facility.