The lawsuit is a much smaller issue than many people make it out to be. The revenue brought in by the "defective" product only amounted to $33 million during the first three quarters of 2014. This is minuscule when compared to the entirety of Trinity's business (less than 1%). On the other hand, the fear that many investors have is not the lack of revenue that would come from discontinuing the product but rather the large sums that Trinity could be ordered to pay because of the lawsuit.
The worst case scenario would be a complete recall of the product. If this happened, Trinity estimates it would cost them up to $1 billion. However, most believe this is very unlikely. All in all, I don't think this is as big of a deal as people make it out to be. The worst case scenario would be that the company would have to recall the product and pay about $1 billion in restitution. This would definitely negatively impact the company and it would be a blow to Trinity's balance sheet. However, it wouldn't destroy Trinity's core business. The company had approximately $1.3 billion of available liquidity at the end of Q3 2014.
People could have sold on Fri and gotten the dividend.
Penn West Petroleum (PWE -1.3%) CEO David Roberts says he is confident the company has turned the corner following an accounting scandal that rocked the stock price.Roberts tells Financial Post he believes PWE now has a bright future as a low cost, conventional oil producer; in five years, it expects its production to rise to 140K bbl/day, with 80% from light oil and liquids.The CEO concedes that it is hard to regain investors’ trust after so many setbacks, but says PWE has taken several steps to improve efficiencies and reduce debt.
That many shares so close to the close on an options expiration day...could that be the MM closing their books on option exercises?
RIGHT! If you buy a million contracts it MIGHT get you a few cents, that is if they don't pin the stock below $4.00.
PS....For those who KNOW how to read, this is what the bozo is referring to:
“During the long occupation, American troops began encountering old chemical munitions in hidden caches and roadside bombs. Typically 155-millimeter artillery shells or 122-millimeter rockets, they were remnants of an arms program Iraq had rushed into production in the 1980s during the Iran-Iraq war.
“All had been manufactured before 1991, participants said. Filthy, rusty or corroded, a large fraction of them could not be readily identified as chemical weapons at all. Some were empty, though many of them still contained potent mustard agent or residual sarin. Most could not have been used as designed, and when they ruptured dispersed the chemical agents over a limited area, according to those who collected the majority of them.”
– The New York Times, Oct. 15, 2014
The only concern I have with the concept of "valuable" noncore properties is that everyone has them and therefore its a buyers' market.
The division that includes the guardrail business grossed $540 million out of a total of $4.4 Billion (2014)