resulting in a 35% market value loss? Seems a bit extreme. I'm holding.
of short traders. This is a small amount for a $20 billion dollar company. There is more about accounting about estimates which honest people can disagree. Short traders and the lawyers will be quite happy about this but my Congressman is going to know about this. There needs to be an investigation by the SEC about shills for short traders and hedge fund con artists bent on destroying capital. This is an honest business of excellent properties, strong credit worthiness, unsecured lines of credit and look what has happened. I've lost about $20k this morning.
A similar event is occuring with ARCP this morning. Accounting is often about estimates(not everything is transactions), which honest persons can disagree. This boils down to a relatively insignificant $13 million or so transaction of a $20 billion dollar company. But the traders will destroy this company if it can, shorting by spreading distrust abetted by the legal community. I'm asking my Congressman to launch an investigation within the SEC of these activities and posters who feed the shorts.
he juices the stock up(short term) with buybacks and increasing debt. The common dividend apparently has been lost, cash flow is in decline. Could this be a conflict of interest. We might just hope the Portnoys buy it back.
Sentiment: Strong Sell
Covered a bit of ISIS this evening. They took the city of Mosul, pop above 1 million with a mere 800 troops. The so called Iraq army collapsed and Isis was greated very well. PBS is covering ISIS on their program, "Frontline" tonight. There was an article written on global oil recently and that Iraqi political control would be a tipping point. The fact the U.S. armed forces were in Iraq for 10 years reinforces this point.(geopolitically strategic...means lots of oil supply control).
Sentiment: Strong Buy
Twitter has dropped 30% in two days now trading in the low $40s, annual earnings $.12cents/share. The Nasdaq, similarly fashionable in the year 2000 index was above 5000 in the year 2000 and now flounders with an overall loss of 20% after nearly 15 years. Twitter...oh how fashionable and sexy. Now there is PWE trading at a mere $4.50, generating oil and gas and annual cash flow(check out funds flow last quarter) well in excess of $2/share annually. Oil and gas or tweets, does anyone really need to ask which is the better value. Bank debt is now below $2 billion. Duvernay, a non core property is estimated worth $700 million and Swan Hills, worth more than that.
Long 16k shares @ 5.
Sentiment: Strong Buy
I know a very rich woman whose great great grandfather bought oil land in TX. She is a very rich woman. Duvernay estimates for sale $600-700 million; another non core is Swan Hills reportedly worth more than Duvernay.
Why panic and sell these lands? There are SUV's being sold in NAmerica in the millions. Oil is at least as valuable as farmland and food. Dave Roberts is a techie oil man and it is highly unlikely that capex expended before will be necessary to optimize production. Funds flow is 4X the dividend.
Long 13.5k shares PWE.
More than likely, if the common dividend were to be announced, it would have occurred simultaneously with the preferred.
Correction and retraction of above. The above comment was incorrect and intended for the EQC board. SNH appears solid to me.
The common dividend declaration doesn't appear likely. The current management took over by impugning the reputation of the prior management despite the fact I understand current management has a bankruptcy filing pattern.
It is nice that you live in that simple world when the sum total of investment philosophy can be defined in one sentence. A couple of experiences you have missed: I bought Hilton Worldwide senior notes at 40 cents on the dollar(yield 20%) for 5 years, which paid off at par one year ago; I bought CBL Pfd D at 25 cents on the dollar nominal value, nominal yield of 7-3/8% times 4. They are currently trading above $25 par.
Clearly, you are playing the short side. With funds flow 4 times the dividend(thats after expenses) and relatively low senior debt(unsecured debt--no collateral). Unsecured debt implies strong credit quality. You are living a fantasy.
The fund manager should have clarified his statement as to discernment in chasing yield. There are some high yield investments that are indeed traps while others are good values. The model for ARCP is similar to NNN and O, which have been successful models for a long period of time. ARCP has a much larger, stronger investment platform of properties . The rub comes in that they are new to the public investment markets but have experienced, capable management. My background: MBA Accounting
Sentiment: Strong Buy
PWE should hold on to those valuable properties. PWE shouldn't have problem finding a financial partner.