What a great short squeeze stock right now. Shorts have been loading up and the commodity price keeps rising as the shorts are paying 15% on this distribution. If the stock went to 21 no one would blink and the short shares owners would be crushed
It will be here this week and the NG prices are shooting up. They can lock in 4.50+ for the next 4 months and just under 4 for the remaining months. The distribution is intact and we are trading at NAV with plenty of room to grow the stock price with a 14% distribution.
NG prices continue to rise and are up throughout the current winter according to the futures chain.. The decrease of 2% in oil prices does not compare to the 25% increase in NG price over the past 2 weeks.
Schieboutz is obviously short and gloating at the stock price. NG prices are up but the market doesn't care because oil is down. If we are hedged in oil the dividends will continue and the market will realize that. Enjoy your time as we are trading below NAV with a 15% distribution.
Cohen has hinted that he will unlock the value of ARP shortly. If you believe him, that means he will either give them some assets, buy up stock, forgive some irri payment to ATLS, or sell the company to someone for a premium. It is the place to be for the next few months, if you believe him.
What is to stop ATLS from buying back shares in ARP after they get the 9.12 from TRGP per share? That would send them running.
Or they could use the 1.2 coverage that is not distributed to threaten a buy back. ATLS might gift some of it's assets to benefit ARP which would benefit ARP and the new ATLS as we approach IRRI's. I would be wary if I were short, as one announcement could send this back to 20 with shorts needing to cover.
They will slowly liquidate their positions. With the price of NG rising , the winter coming, and an increase in distributions coming they will still exit unscathed as long as none of them panic.
Let's hope for a short squeeze. 500000 shorts running for the door would put this back to 20. They should keep the distribution and reinvest the extra into the business or threaten to buy back shares.