NEP is now the symbol for NextEra Energy Partners, LP, a company headquartered in Florida. Apparently whoever assembled the article did a lookup on NEP and came up with China North East Petroleum. Funny.
Sentiment: Strong Buy
Well, I guess I was wrong about OHI staying close to 30. If you could buy some of the new issue at 30, that would be quite a bargain.
Go to the Summary page and look at the news articles at the bottom of the page. The article from Business Wire includes the email address of the underwriter (Jefferies LLC) which will allow you to access the prospectus. I haven't looked at it, so I don't know how many hoops you have to jump through to be included in the stock offering.
I suspect the new offering will keep the price within shouting distance of 30 until it's all completed.
According to one of the news releases:
"Omega expects to use the proceeds for general corporate purposes, which may include funding the previously announced pending sale/leaseback transaction for 56 facilities currently operated by Ark Holding Company, Inc. Completion of the offering is subject to customary closing conditions.
Jefferies LLC will serve as the underwriter of the offering. "
Looking at the OHI website, apparently they have had several similar offerings in the past. Probably not a big deal.
OHI is issuing 2.5 million new shares of stock at $30 per share. I guess that adds about 2% to the share float. Until this deal is completed, OHI will have difficulty rising above $30.
Looking at the long-term chart, a price of 105 looks to be a decent point to buy in, at least a partial buy. At that price, real yields on the 7-10 year TIPs will be over 1 percent.
T Bills are sold at auction by the government. The bills have a fixed value at maturity, so the more the bidders pay for the bills, the less they will receive as interest. So the interest rate for that auction is set by the amount bidders are willing to pay. The government web site treasurydirect DOT gov explains it in detail. The fed is buying a huge percentage of the current issue of treasury securities in order to drive interest rates low. When they stop, it will undoubtedly cause prices to drop and interest rates to rise.
Bond prices dropped slightly, and some folks seemed to sell their dividend stocks out of fear, like you said. My question is, what are they going to do with their proceeds? In the good old days, you could park it in a money-market fund for as long as you wanted, but that's a money-losing proposition now. They don't seem to be rotating into "growth stocks", as some analysts are suggesting. To me, dividend stocks still make the most sense, and I think a lot of folks are going to be buying them back pretty soon. I don't see that many good alternatives.
Congrats. The drop seemed bad, but so far only dropped OHI back to the price we were at about one week ago. I sold 40% of my position a couple of weeks ago, thinking OHI was getting ahead of itself. The question is, when to buy back in? I fear we are beginning a long period with investors trying to guess what the Fed will do next and when they'll do it. Both stock prices and bond prices may be pretty volatile for a while. Should be interesting.
Bonds & dividend stocks are dropping, but OHI is down more than most. I'm guessing some large funds are taking profits or rotating into something else.
Yeah, it's been a month since a real non-spam message has been posted. There doesn't seem to be much to do except wait for the next SEC shoe to drop. Even the perennial optimists seem to have given up.
A Federal Reserve governor is worried about what the bond bubble could do to the financial sector and the economy. He says historically banks have tended to put their money in longer-term bonds, which have higher yields, when interest rates are low, and those longer-term bonds tend to lose the most when interest rates rise. Can anybody else sense another bailout on the way?
Two points: (1) Whose policies caused the bubble through their zero interest rate policies? Hmmmm….
2) I wish somebody up there cared as much about real people as much as they cared about their banker buddies.
I'm not disagreeing with you, but folks should know that emerging markets tend to sell off when US "blue chips" sell off. I don't always understand investor psychology, but when fears runs the market, investors tend to sell all equities at the same time. Over the very long term, maybe it's a different story.
On Jan 8 the SEC announced an administrative proceeding to determine if CNEP's registration should be revoked or suspended. They gave CNEP 10 days to respond -- that's today, Jan 18. I wonder if they blew it off or if they actually answered. If they did answer, I guess a public hearing will be held. If not ......
I believe Shilling has been predicting a deflationary environment. (Is that still the case?) In late 2008, when the fear of deflation ruled the market, TLT (long term treasuries) soared, while TIP tanked. This move has been reversed since then as deflation fears subsided. So they aren't always well correlated. I saw somebody quoting a 40% correlation index between TLT and TIP -- that seems surprisingly low to me.
In any case, if a fear of deflation returns, I would expect the same thing to happen -- TLT goes up, TIP goes down. But I guess it's up to you to decide if Shilling is correct about that. If I believed it, I would be selling all equities and buying TLT. But I'm not doing that. Time will tell if he's correct. Good luck.
Sounds more like a divorce than a reconcilation
SECURITIES AND EXCHANGE COMMISSION
Release No. 68601 / January 8, 2013
File No. 3-15167
In the Matter of
China North East Petroleum Holdings Limited,
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS
AND NOTICE OF HEARING PURSUANT TO SECTION 12(j) OF
THE SECURITIES EXCHANGE ACT OF 1934
The Securities and Exchange Commission (“Commission”) deems it necessary and
appropriate for the protection of investors that public administrative proceedings be, and hereby
are, instituted pursuant to Section 12(j) of the Securities Exchange Act of 1934 (“Exchange
Act”) against Respondent China North East Petroleum Holdings Limited.
After an investigation, the Division of Enforcement alleges that:
A. Respondent China North East Petroleum Holdings Limited (“CNEP” or
“Respondent”) (CIK No. 0000787251), a Nevada corporation with principal executive offices
located in New York, is purportedly engaged in oil exploration, production and drilling in the
People’s Republic of China (“China”). CNEP’s common stock was registered with the
Commission pursuant to Section 12(b) of the Exchange Act and was listed on the NYSE MKT,
LLC (“NYSE”). On July 6, 2012, the NYSE filed a Form 25 delisting the common stock
effective on July 16, 2012, and deregistering the common stock from Section 12(b) effective on
October 4, 2012. Upon deregistration from Section 12(b), the common stock reverted to its
previous registration pursuant to Section 12(g) of the Exchange Act. As of January 7, 2013,
CNEP securities were quoted on OTC Link (formerly “Pink Sheets”) operated by OTC Markets
Group Inc. at 19 cents per share, had four market makers, and were not eligible for the
“piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
B. CNEP is delinquent in its reporting obligations under Section 13(a) of the
Exchange Act having not filed a periodic report for any period ended after September 30, 2011.
C. Section 13(a) of the Exchange Act and the rules promulgated thereunder require
issuers of securities registered pursuant to Section 12 of the Exchange Act to file with the
Commission current and accurate information in periodic reports. Specifically, Rule 13a-1
requires issuers to file annual reports, and Rule 13a-13 requires domestic issuers to file quarterly
D. As a result of the foregoing, Respondent failed to comply with Section 13(a) of
the Exchange Act and Rules 13a-1 and 13a-13 thereunder.
In view of the allegations made by the Division of Enforcement, the Commission deems
it necessary and appropriate for the protection of investors that public administrative proceedings
be instituted to determine:
A. Whether the allegations contained in Section II above are true and, in connection
therewith, to afford the Respondent an opportunity to establish any defenses to such allegations;
B. Whether it is necessary and appropriate for the protection of investors to suspend
for a period not exceeding twelve months, or revoke the registration of each class of securities
registered pursuant to Section 12 of the Exchange Act of the Respondent identified in Section II
IT IS HEREBY ORDERED that a public hearing for the purpose of taking evidence on
the questions set forth in Section III above shall be convened at a time and place to be fixed, and
before an Administrative Law Judge to be designated by further order as provided by Rule 110
of the Commission’s Rules of Practice [17 C.F.R. § 201.110].
IT IS HEREBY FURTHER ORDERED that Respondent shall file an Answer to the
allegations contained in this Order within ten (10) days after service of this Order, as provided by
Rule 220(b) of the Commission’s Rules of Practice [17 C.F.R. § 201.220(b)].
If Respondent fails to file the directed Answer, or fails to appear at a hearing after being
duly notified, the Respondent may be deemed in default and the proceedings may be determined
against it upon consideration of this Order, the allegations of which may be deemed to be true as
provided by Rules 155(a), 220(f), 221(f), and 310 of the Commission’s Rules of Practice [17
C.F.R. §§ 201.155(a), 201.220(f), 201.221(f), and 201.310].
This Order shall be served forthwith upon Respondent personally or by certified,
registered, or Express Mail, or by other means permitted by the Commission Rules of Practice.
IT IS FURTHER ORDERED that the Administrative Law Judge shall issue an initial
decision no later than 120 days from the date of service of this Order, pursuant to Rule 360(a)(2)
of the Commission’s Rules of Practice [17 C.F.R. § 201.360(a)(2)].
In the absence of an appropriate waiver, no officer or employee of the Commission
engaged in the performance of investigative or prosecuting functions in this or any factually
related proceeding will be permitted to participate or advise in the decision of this matter, except
as witness or counsel in proceedings held pursuant to notice. Since this proceeding is not “rule
making” within the meaning of Section 551 of the Administrative Procedure Act, it is not
deemed subject to the provisions of Section 553 delaying the effective date of any final
By the Commission.
Elizabeth M. Murphy