It's trading at these depressed levels due to conservative nature of the dividend. If they had a policy similar to NAT or the recently announced FRO this would be trading at or above NAV.
I found his questions amusing and ill informed. No idea that they had not sold any of their downstream projects. Really?
Also if you noticed his questions they were all trying to re-enforce his continual theme on the industry.
Over supplied - NOT
Fed in Tariffs can't be collected - Partially accurate but apparently getting resolved.
US Tax credit reduction/ lapse will kill solar - Doubtful.
Incredibly this guy still gets a lot of press and has followers, but I can't for the life of me see why.
That makes no sense. The stock is selling at 20% of book. If the market believes that all reserves are adequate after a $2 billion reserve increase I would expect the stock to go higher, not lower. The big question, of course, is "if the market believes"
Your first comment is of course accurate .Duh! But what did it cost to acquire the properties and put the infrastructure in place THAT is the cost and most of it is already sunk so it's completely irrelevant to the current situation. This Company can probably sell enough properties to virtually eliminate their debt and still have 50K/day of rather low cost light oil that would be worth more than $500 million, the current market cap (which would be the relevant number after the debt is paid off).
So can this Company survive if they sell that light oil at less than its cost - of course it can. The value is just less than the costs it took to produce it which were way way way more that what the Company is valued at currently.
Right. SUNE and JKS have almost nothing in common. JKS highly profitable with profits growing. SUNE never has been profitable and losses increasing. SUNE totally reliant on related party yieldcos who have no liquidity to buy their panels. JKS has no yieldcos, only wholly owned power projects which they may or may not ever sell. They don't need to. Lastly SUNE completely reliant on US market. JKS well diversified.
Sentiment: Strong Buy
This isn't down due to HFT or some other contrived conspiracy. The business model has imploded, simple as that. The question becomes whether they can overcome the huge debt burden. The stock won't be staying where it is for too long. Either zero or big increase. Place your bets.
Frontline didn't can a 17 year old tanker. It was sold by ship finance (the lessor) to an unrelated party. Frontline was paid a breakup fee to break the lease.
The $ value of Treasury shares increased by $1.7 million so maybe around 600,000 or so shares were purchased?
Regardless of earnings, which were excellent, the Company has a difficult road to follow. On the one hand it's a no-brainer to buy back stock at current levels. On the other hand, the valuation will continue to be compromised until the debt levels are reduced in relation to equity. Buybacks, of course, reduce the equity. I would expect buybacks to continue at less than expected levels if and until the debt is reduced. The Company will also continue to trade significantly below book until leverage is reduced.
BTW I expect earning for 2016 to easily exceed $2 per share. New York alone should be $1
None of your 3 scenarios is the most likely. You have omitted the most obvious. PWE will continue to sell its non-core assets and reduce debt to a level that allows it to survive at sub $50 oil indefinitely. When ultimately oil rises so will PWE. I must admit that I cheated in coming to this conclusion by listening to the Company's 3Q conference call, but maybe you might want to consider that in the future before posting.
Sentiment: Strong Buy
Except that the major solar producers (CSIQ FSLR JKS TSL) are already highly profitable. It's the solar distributors and financials like SUNE and Solar City that can't make any money. The US market is a fairly small piece for the majority of the producers.
BTW if you really are thinking about investing in ORIG read the article published today on seeking alpha. It does a pretty good job of analyzing the risks, including the CEO risk. I for one think the CEO risk is just too great to invest. Maybe you won't. But at least you will have knowledge aforhand.
Shelly is right on this one. That is why the new CFO emphasized the need to significantly reduce the leverage. We'll see in the next few releases whether they do or not.