you say the stock will have better returns over the next three years than the bonds. One can hope that will be true but it is not guaranteed. Maybe yes, maybe no.
But that was not the thrust of my post. Rather, I was communicating that management has recognized the seriousness and reality of the low price environment and the increasing likelihood that it is going to be lasting a long time, and that they have decided to get more conservative, even more conservative than they were a few months ago. . I believe this is wise, and good news for stakeholders in GST.
last friday was the Russell index rebalancing, with the index weighting of the various components being adjusted. This caused managers of the index funds holding the stocks in the index to buy and sell stocks in the indices to be in line with the new weightings. This was true of GST and of many many stocks on friday.
You know, I could have started my post above with an attack on you, but I did not.
Typical of the inferior low life person you are to have falsely attacked.
Your post is easily refutable.
1. you supposedly have me on ignore and should not have seen my post
2. there was no flip flop, the stance of management is now decidedly different than it was six months ago, and even different than a a couple of months ago. Because you are a clueless amatuer and have no contacts with the large shareholders I mention and do not personally speak with management, you apparently are not able to guage the difference that now exists.
Too sad Mcgoo, that you continue to wallow in the mud and ignorance of your narrow minded view
Due to the influence of some large shareholders/stakeholders, an evolution in management's method of operation has occurred for the better. This has been most recently evidenced by the sale of mid continent properties, along with the more conservative capex /operating plans with the very important goal of improving the balance sheet and improving the companies' chances of surviving during the "storm" of low product prices / opec competition etc, so that GST will have the chance of prospering when the storm is eventually over, which is still far in the future.
I now believe that management will continue to look for opportunities to do MORE of the above, .
While I do not believe that the common shares are likely to make a huge recovery in the near term, they will likely continue to be the trading vehicle they have been in recent months.
Additionally , the above decreases some of the risk in the preferred shares, however the bonds represent a much safer investment. Not only safer, but a wiser choice, because the returns are very close to being the same, with the added benefit that in may 2018, holders of the bonds will get 100 cents on the dollar for their bonds at maturity, whereas the preferred holders will not, as no maturity or obligation by the company to redeem them exists as they are "perpetual". That being said, there is reason to hope for holders of all three classes, ie common shares, preferred shares, and bondholders to breathe easier .
for example, the market is attempting to discount, where wti/ ng (including gst's specific ng markets) costs, over a period of time, as well as rolling in such factors as interest rates , risks of all kinds etc etc. GST has never proved it can make money sustainably even when product prices were better. The shareprice of GST at its highs were a bubble phenomenom, the shale bubble.
If one wants to make a case or complain of a mispricing by the market, that was time to do so.. Now and in the next few years, we are seeing a more rationale market.
first of all, I don't accept taking orders or directions from #$%$ like you
secondly, why did you see my post if I was supposedly back on ignore
thirdly, I will answer you question only because I choose to do so, because it is a good case to illustrate the difference between you , a clueless amateur and the way professionals view the investment world.
You ask "should GST be above $4 with WTI at $60?", sticking your chin out, in an amateurish manner. The real world ( non gst yahoo finance message board world), views things in a comprehensive discounted dynamic manner. The market is a reflection of that real world. And the market's assessment is that GST is, should be where it is based upon all the forseeable factors. Your amateurish attempt to force your limited view is just an example of why you do so poorly in your investing. You prefer to live in the dream world of mr. mcgoo cartoon /gst yahoo finance board. You are akin to the primitive people believing in superstition rather than the science they were simply not able to understand or know.
Nope Mcgoo, your bs , as usual does not cut it.
Why are you answering my post if you have me on ignore? You are telling fibs again.
I own you Mcgoo, You are inferior to me.
have not looked at this board for quite awhile but see that things have not materially changed.
still see that dumber than dirt crowd is here.
McGoo, putting his foot in his mount in the mr. mcgoo manner, ie "when oil stabilizes, GST will move straight to $4 and then to $12!" . Well oil has more than stabilized, it has rallied quite strongly and lets see, $3?
yaontwo, perhaps the dullest of the crowd still thinks that when you look at time and sales data, and you see small lots trading, that it is the "little shareholders' trading. He has not figured out what every professional knows that nowadays institutions execute their orders via automated computer programs in small lots! Hear that yaontwo, you are just like the primitive people who believed in wood idols!
Too funny , and too sad , perhaps , makes it easy to take your money from you.