In the presentation, EBITDA is to exceed capex by 75-100M but interest expense is estimated at $133M so it appears the sale was needed to cover the cash short fall. Do I read this right? With the asset sale, they may be cash flow positive for the year.
Until I see some positive movement bonds, I'm staying away. Bonds due in 4 years paying 15-17%. This stock presently for traders 1-7 days, not for investors. Not long and not short, just watching because I use to work the management team when we were all on the trucks at Halliburton. I wish them the best, but think they are all over their heads.
Midstates (also controlled by First Reserve) has bonds selling at +/-65% of par that just paid the 4/1/15 semi annual dividend. Less risk but also less reward.
I own $5K of face value purchased at a big discount as just what you suggest-- risk/reward. Don't put in more than you can afford to lose. Bond market is not as transparent as the stock market. Bid/Ask spread is large and you can buy at a lot higher price. go to the finra sight and look up the bonds before going to a broker to buy.
Both the Sabine and Forest are at 16-18 cents on the dollar. Forest bonds price is low because Sabine is contesting the change of control.
The put is on the Forest bonds not the Sabine bonds that are trading at such a discount listed as NFR on the finra website.
Not short and not long, but do have some MPO bonds. Have to wonder if First Reserve will just try and merge this into some of the other oil companies they control. The only out is BK or merging with some of the other entities FR controls. Will be interesting to see how it plays out.
Very low probability. There were questions if SSE was bankrupt when spun from CHK. Too much debt. Management has no track record other than selling WELL to HAL to pay off the bankers. Shareholders didn't fare well in that deal. Debt trading at 17% says highly distressed. Oil low and customers cutting drilling/fracking budgets. Make your own decision, I'm staying away for now. Not short and not long.
Stock down nearly 90% in less than a year and bonds at 70 cents on the dollar or less and yielding 17+ percent.
As long as we wait out the Greek problems, I thought I would ask if anyone has any good ideas on how to play the current euro vs dollar. I have purchased a starter in SAN since it is priced in euro, but trades here in dollars and add to the euro fall the bank is cutting dividend so price seems low. I somewhat dislike banks because they are classic value traps. Made some money on Irish banks, though. QE starting in Europe, so now may be the time to get into Europe??? Anyone have any other ideas on playing the falling euro vs dollar?
I'm not jack, but will give you my unrequested input. Greece is a mess, I've been in and out of the preferred for the past 5 years. Made good money as you say buying below $10 and selling at $14+. All a straight up gamble. Greece needs out of the Euro to get its affairs in order, but cannot due to many factors.
I just left 2+ years back in the oil services industry. Still another leg down to go. Production still growing, but storage filling up. Seen this 5 times in the past 30+ years I've been in the oil services industry. I'm betting on some of the bonds in companies, but waiting for the 2019/2020 debt wall to hit. Google the term debt wall 2019 and it gets scary.
All companies have gorged on low interest short term loans that mature between now and 2020. Who needed profits when a company could borrow at a low rate and do stock buybacks and pay dividends. History is repeating the Greek fiasco only on a much bigger scale. Governments have done the same thing through out Europe and the US. Greece was the canary in the coal mine.
Fed cannot raise rates, too much debt in the short term market leveraged to long term investments. Consumers are saving money/paying off debt and not spending. Will take another 5-10 years for the great recession to wear off. Those that don't study history are doomed to repeat it. Just my comments.
More secure than stock. Not saying it is not gambling, just more secure than buying the stock. Bonds down 60% but stock down more.
Bonds are selling at 40% of face with a +/- 20% yield to maturity in 2017, so the bonds might be a better buy if you think the company will survive. I just bought the bonds and will use the interest payments to buy the stock. If the company survives, I benefit both ways with less risk versus owning the stock alone.