Selling oil/gas assets in this market for a remotely reasonable price? Forget about it. Had this been feasible, the likes of SN, OAS, LPI, GDP, EXXI, BTE wouldn't have opted for massive dilutions instead. What makes you think PWE would have better luck with assets sales than its peers?
A few major changes you might have overlooked:
1. PWE has pledged all its assets temporarily to lenders until PWE meets performance goals as a condition to the amended covenant,
2. A $500m revolving credit line has been terminated, also as a condition to the new covenant, leaving PWE with one $1.2B credit line. This development appears ominous as it reduces PWE's financial flexibility and may leave issuance of new shares as the only viable financing option.
Are you saying all shares, including the new shares, get 0.96 divvy per year? Is this your personal assumption or as per company's PR?
Have you actually read the report?
"We have also agreed to temporarily reduce our quarterly dividend commencing in the first quarter of 2015 from the previously announced $0.03 to $0.01 per share..."
BTE supposedly has far strong balance sheet and cash flow than PWE, and yet it nonetheless felt necessary to bite the bullet of dilution, I think the odds are quite high for PWE to go down the same path. Even though the management has said in the past that they intended to sell off assets to cope with debt, but recent rash of dilutions by the likes of SN, OAS, LPI, GDP, EXXI,... and now BTE indicates that right now there are simply no buyers for oil/gas assets with remotely reasonable bids on the table.
+ even worse outlook. Any day now.
Without CA, OCN will be as good as runoff mode, which has the PT of $12-14. Now with CA in play, OCN's business is essentially intact, PT should be easily adjusted upward to $30-40 range as was the case before the scare over CA pulling OCN's license.
Non Sequitur. Kodak and Blockbuster had debt due and couldn't even manage the interest payment, whereas OCN has no debt maturity for at least 4 years and have no problem paying the interest with its forward earnings of $1.88/share.
Your question actually has 2 parts:
1. Blue mountain shorts are alleging technical default of OCN loans because they claim the deals that OCN struck with NY, and about to strike with CA constitute material breach of loan covanents, which is pure BS. OCN's bonds are still trading over 80 cents on dollar, hardly in the "default" territory.
2. There is a slim probability that OCN will no longer be allowed to take on new mortgages due to more stringent government regulations, and this has already been reflected in the stock price, IMHO. Even if OCN can't take on new business, it can still service and profit from the exiting mortgages, which is called "runoff". The runoff value of OCN is estimated to be $12-14/share.
Forget about buyout anytime soon. REXX is a tiny company with limited assets, big guys don't even have any interest in a company of this size.
bought 25k at 1.35. I'm hoping for minimal a double here. If the company has any luck with its payment collection, $5 is not out of the question.
REXX: diamond in the rough or fool's gold? My view is any stock can become the former at the right price, it's just REXX has apparently not reached that price point yet.