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Halcón Resources Corporatio Message Board

keltus1952 313 posts  |  Last Activity: 23 hours ago Member since: Mar 4, 2004
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  • Noticed it as a holding of GRX, a Closed end fund that I have a position in.

    Mostly Q 4 (Dec. 31) numbers, giving some consideration to the recent offering which raised some desperately needed immediate Cash.

    Q 4 revenue...................$254 million
    Gross profit.......................65.6 million
    Here's the 2 things that really bother me and that are making profitability hard to achieve........

    SG&A expenses..........$64.3 million
    Interest expense.............9.3 million
    **Add just these 2 expenses together ($73.6 million) and subtract them from the Gross Profit of $65.6 million and BIOS is already at an approx $8 million 1/4ly loss. They need to cut SG&A (hard to cut the interest expense) if they want any chance of achieving profitability anytime soon.

    Might be cash flow positive, which is good, but investors look at profit, not cash flow (perhaps unwisely)...

    Balance sheet.............Debt of $418 million is daunting. If they can grow and control other expenses, they may be able to "grow their way" out of the debt problem.

    Accounts payable grew $27 million the last 3 months of 2014, which probably exacerbated the need for the March offering.

    Goodwill of $573 million.........could be a huge write off (non cash) coming here someday. They've obviously made some big or numerous acquisitions to have built up such a large number in this area.
    If the acquisitions aren't contributing profits (at some point)........current accounting law requires an accelerated write off of Goodwill. Not a horrible thing as it would be non-cash, but it looks ugly and sets a bad precedent.

    Just my honest observations as a non holder........................Kel

  • Reply to

    Just bought a slug @ 8.31.

    by keltus1952 May 1, 2015 3:52 PM
    keltus1952 keltus1952 May 2, 2015 6:36 PM Flag

    It'll be a long term investment. I'll likely sell it before the EPS report after Wed's. close.


  • Reply to

    Am I smart or just lucky?

    by keltus1952 May 1, 2015 3:20 PM
    keltus1952 keltus1952 May 1, 2015 4:07 PM Flag

    Closed the week @ 52% cash even after that big PSEC purchase.......Kel

  • Sold CHK and UGAZ for gains. Too much cash on hand.

    At least PSEC is cheap. Over $2 below NAV, nice yield, and EPS out next Wed. after the close.


  • Reply to

    Am I smart or just lucky?

    by keltus1952 May 1, 2015 3:20 PM
    keltus1952 keltus1952 May 1, 2015 3:49 PM Flag

    Bought a slug of PSEC @ 8.31, near multi month lows and over $2 below its Dec. 31st NAV of $10.35.

    They report EPS on May 6, next Wed., after the close with the CC @ 11:00 AM Eastern the next morning.


  • Sold UGAZ (3 X long natgas ETF)...made 31% in 3 days.
    Cleaned out of CHK after a 2 day rally.....all profits.

    Starting to feel like Slickster. very loaded with cash and can't find anything to buy.....looking at....

    CVX and / or COP....
    more shares of TICC.......


  • keltus1952 keltus1952 May 1, 2015 1:06 PM Flag

    I pray for many things, but never about money.........Kel

  • Reply to

    Declared 29 cents

    by keltus1952 Apr 30, 2015 7:30 PM
    keltus1952 keltus1952 May 1, 2015 1:02 PM Flag

    Grabbed a little @ 4.91.........Kel

  • Reply to

    13% Discount

    by dsouth7777 Apr 27, 2015 12:57 PM
    keltus1952 keltus1952 May 1, 2015 10:50 AM Flag

    dsouth........I've held a core (non IRA) position in FEI since Jan. 2013, soon after it's IPO. Very happy to just collect the monthly distributions.
    At one time (last fall approx) I also held NML, CEN, and FPL, all at the same time. Decided to lighten up in that area and just stick with FEI, the monthly payer with the nice rising dist record.

    I've received paper reports from all these CEFs and have scrutinized them so I understand the accounting methods used in these entities.

    I only have one year of post high school Accounting and that was tech school back in 1971-72. I have made great efforts over the years to expand (on my own) my accounting knowledge. It has served me well in all areas of investing.


  • Reply to

    Declared 33.07 cents...

    by keltus1952 Apr 30, 2015 7:33 PM
    keltus1952 keltus1952 May 1, 2015 1:43 AM Flag

    Did I post something that's untrue. I read the WHOLE press release. Did you?


  • Reply to

    GILD.....up after hours..

    by keltus1952 Apr 30, 2015 4:40 PM
    keltus1952 keltus1952 May 1, 2015 1:41 AM Flag

    A low PE Ratio..........the price they pay for having one incredibly effective drug and a few much smaller, mediocre ones.


  • keltus1952 by keltus1952 Apr 30, 2015 7:33 PM Flag

    Thanks to hedges for about 2/3's of the distribution. All hedges end at the end of 2015 calendar year. Enjoy them for a few more quarters unless pricing improves significantly.

    Kel............just an observer

  • keltus1952 by keltus1952 Apr 30, 2015 7:30 PM Flag

    As of March 31 the final well has been drilled.

  • keltus1952 by keltus1952 Apr 30, 2015 7:28 PM Flag

    Over 50% of the distribution came from derivative contracts (hedges). Will be gone the next time around. observer

  • Now up about $3.00, but is bouncing around.

    ***declares initial div of 43 cents.....x -div June 12, pays June 29..

    **Quarterly sales of $7.6 billion vs year ago of $5.0 billion (+52%)

    **EPS (GAAP) of $2.76 vs year ago $1.33 (+107%).....non GAAP $2.94 vs $1.48

    Cash of $14.5 billion.......debt of $13.3 billion

    Still holding my position. Cost of 73.13 on 3-26-14.


  • Reply to


    by wimuskyfisherman Apr 30, 2015 12:38 PM
    keltus1952 keltus1952 Apr 30, 2015 4:22 PM Flag

    Did well today with some UGAZ I bought on Tuesday @ 1.81. Still holding as NG may have more rally left in it, for now anyway. Day to day holding.

    Sold some CHK today @ 15.75......cost 15.11 on April 21. Had to suffer with that for several days.

    Keep those PSEC guys on their toes over there-:)


  • Reply to

    13% Discount

    by dsouth7777 Apr 27, 2015 12:57 PM
    keltus1952 keltus1952 Apr 29, 2015 4:15 PM Flag

    Another interesting thing is the Deferred income tax liability. It's on the balance sheet under the LIABILITIES heading, 2nd item. Shows an amount of $156,221,316.

    This is POTENTIAL taxes on gains that would be owed if the portfolio was liquidated as their gains on 10-31-14 were about $403 million (top of ASSETS classification).


  • Reply to

    CELG & GILD....both report on Thursday..

    by keltus1952 Apr 28, 2015 8:01 PM
    keltus1952 keltus1952 Apr 29, 2015 3:59 PM Flag

    It is hard to predict the EPS and the reaction. Both CELG and GILD have a big part of their revenues coming from one drug. They both need a more diversified product mix. Probably the main reason for the modest PE Ratios.


  • Reply to

    13% Discount

    by dsouth7777 Apr 27, 2015 12:57 PM
    keltus1952 keltus1952 Apr 29, 2015 3:52 PM Flag

    This is complicated, so I hope you are really a CPA. I have the paper copy of the Oct. 31, 2014 report so I hope the page numbers match.

    Page 14 of the CASH FLOW STATEMENT....6th item from the top.....shows a $ amount of $47,411,834 with the line named "RETURN OF CAPITAL RECEIVED FROM INVESTMENT IN MLPs."

    Now on page 19 under Note F...near the end of the 3rd paragraph......quote...."For the year ended Oct. 31, 2014, distributions of $47,957,182 received from MLPS have been reclassified as a return of capital." That's why the "Investment income" numbers (page 12) are so much smaller than you'd expect them to be.

    The $$ come from the MLPs and flows through to the distribution and is then classified on your (mine) as ROC. My dists were about 2/3s ROC.

    If the ROC was destructive (return of your invested $$) it would show up in a deterioration of the NAV. FEI has grown its NAV over the last 2 years.


  • Reply to

    13% Discount

    by dsouth7777 Apr 27, 2015 12:57 PM
    keltus1952 keltus1952 Apr 29, 2015 2:30 PM Flag

    I like that FEI (and FPL....sibling of FEI) writes call options on up to 35% of their portfolios. Adds a little stability when MLPs are fluctuating, especially downward. The fund cites the buy / write strategy as a form of "insurance" for the approx 25% leverage.

    FEI has also raised their distribution 4 times in the last 2 years.

    Sept. 2013.....from .10875 to .1100
    March 2014.......up to .1117
    Jan. 2015..........up to .1134
    April 2015..........up to .1150.....small raises, but they add up over time.

    CEN still @ .1042. Not sure, but I don't think they've ever raised.


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