Also, they are very well hedged and promise $2.40 in distribution throughout 2015. Until ROW gets back in growth mode, oil will be challenged. However,it can't go a lot lower for very long because many producers will drop off below $70/bbl.
And then turns negative over nothing. This market will not believe anything except a glowing earnings report or maybe more is required. M.A. may be right concerning DRYS potential, but until the market sees absolute proof the SP is staying down. There is one other way: If I sell my shares it will probably double within a week!
Why dance? If you trade back and forth, you miss the tax benefits on income. I like to nibble on dips and hold for tax deferred distributions. Of course if you'r trading in a ROTH; wonderful! Dance to your heart's delight!
I read the other article, but did not see so much info. I like that they are doing this; smart move IMO; but yes; there will be a price. They may do it with earnings; I hope they do. This is a kindof hedge, that has lots of advantages. Already own a lot but this makes me want more!
Interesting; it shows the various prices paid for crude based on grade and where it is from. Looks like mean ppb of about $66/bbl. But the W Tex crude is most representative of their cost because it is closest. One thing it tells me is there are plenty of complete liars on this board. In one post I read it was said that the price can not go below $88/bbl. Which means they still make money with lower gasoline prices matched by lower crude. I didn't believe the lie in the first place, but nice to see evidence
Thanks; it doesn't tell much and surprises me that I don't notice any mention of it by CVRR? Perhaps something will be said in next earnings report?
Actually, the stock has held very well considering considering the FDA seems to dislike them so much. When it comes to the FDA. money seems to talk louder that testing. It's not who you know it's who you.....
I agree there is a bullish indication but not so sure about the numbers. The energy sector is very much in a "show me the money" mood. When CVRR announces the next distribution near $1.00, your dream may become reality.
If you look at "analyst estimates you do see what you say; however they also estimate 2014 rev well below 700M. YET, they estimate revenue for the quarter at 1.95B! Clearly it is a mistake; it should be near $8B.
The ignorant writer of that article didn't provide the strike price! In fact he imp[lied it was .75!!! Cle3arly he doesn't know what he is writing about. In truth it could be bullish or bearish; means nothing. If it's at 21 as suggested below; probably a long covering on the buy side. Bearish speculation on the sell side. Frankly, I think SDRL will dip below 21 and probably below 20.
A hatchet job for sure. I don't care; if it can push it low enough I'll buy more. As long as you don't sell it is tax free income of over 14%.
Not likely; especially on oil. Even SA can no longer produce oil that cheap and shale can't even get close. NG has a production cost too and when it gets too cheap the supply is reduced.
Investors are being told the money they invest is going to be profit for someone else. What do they think an IPO does??? What a cheap shot! The are being made to feel they are being cheated if they invest in ARP
Here is one reason; it this stuff true? Never mind that you get a 14% yield
NEW YORK, Nov 11 (Reuters) - Atlas Energy LP has a deal for investors eager to get in on the U.S. energy boom: Contribute at least $25,000 in a partnership that will drill for oil and gas in Texas, Ohio, Oklahoma and Pennsylvania and then share any revenue from the wells’ output.
Atlas Resources LLC, a subsidiary of the Pittsburgh, Pennsylvania-based energy group, aims to raise as much as $300 million before the offer closes Dec. 31. The company says it will toss in up to $145 million of its own capital, too.
But not all investors are created equal in this undertaking. Atlas’s confidential offering memorandum, reviewed by Reuters, shows why.
Up to $45 million of the money raised will be paid to Atlas affiliate Anthem Securities to cover commissions to broker-dealers who market the deal, the memorandum says. As much as $39 million more will be used to buy drilling leases from another affiliate. Atlas-affiliated suppliers may also get some of the $53 million set aside for buying drilling and transport equipment.
An additional $8 million of Atlas’s investment is not an investment at all; it is a 15 percent markup on estimated equipment costs. As soon as drilling begins, Atlas will pay itself nearly $52 million in various other fees and markups.
In short, Atlas’s $145 million exposure is reduced by at least 40%, and possibly much more, after taking into account payments to group affiliates and markups. Further, if and when the venture starts generating revenue, Atlas is entitled to a 33 percent cut, reflecting the size of its stake before accounting for those payments and markups.
Atlas is raising money for the venture, called Atlas Resources Series 34-2014 LP, in what is known as a private placement - a sale of unregistered securities through broker-dealers to a limited numb
I am not so sure he is a billionaire; if so, why bother with DRYS at all? And if he does perhaps it is a matter of pride. People don't get to be billionaires by throwing away millions.
One thing I have learned is you need to have a lot of patience to invest. You identify a company in "turnaround"; and you buy; maybe you are right but it takes a lot of time for the market to "see" it. Also you are wrong; it is not continuing a decline; it declined to a low of 1.32 in Oct and has been in a range 1.37 - 1.62 for the last 3 weeks. Look at the chart!