Today Mill announced they have amended their documents to prohibit officers and insiders from selling the stock short. Their officers are oil men and we all know oil men hedge (not short) their positions so this regulation would seem to be misguided, or more correctly, directed at all but the officers who are praised for hedging. Also, in the past I have had conversations with SEC lawyers who educated me to the fact that there is no such mention in SEC documents referring to, or acknowledging, any factual admission of a formal period in legal terms called "the blackout period". Unless things have changed this was just a cop out during periods of financing or M&A negotiations created by the company's own lawyers for self preservation to prevent leaks from escaping. Funny how stories get twisted to give management an excuse for revealing what they want only to those whom they want to know. In secret, of course. (Wink. Wink.) I'll bet this is why they used so much ink in the announcement this morning to keep highlighting the "blackout period" they frequently lean on. I could be wrong so check it out.
If I recall the precise legal impact of having a margin call executed correctly there is a finite point to be analyzed. A firm ordered sellout usually entails selling the stock out at the market by the margin department with no regard to the customer's well being; just to the law, in order to bring the account into balance - thereby not requiring SEC scrutiny because of no action by the customer. On the other hand, if the client places the order in his own behalf he is then managing the account and required to file the execution in compliance with SEC regulations. (Such as what appears to have happened here). A case can be made that he voluntarily elected to sell for personal reasons rather than being forced by the responsibility placed on the firm. This subtle difference may change the nature of what really might have taken place.....if memory serves.
What do you make of this?
What do they call someone who says the same thing over and over again and expects a different result? Answer: FLASHDUDE!! Why don't you calm down and get some different reading material to broaden the focus of your mind. Try reading the current Barrons and learn what intelligent people think.
The Barrons article opines OPEC wants to let the price drop further to eliminate the competition by eradicating the weaker and smaller companies. (Now, who fits that description?)
Has anybody checked to see if Boruff got the margin call from the brokerage firm he owns? (Or used to own because I do not know if he sold his interest). This information might be interesting, or at least curious, to find out.
GET REAL! If you believe Boruff is as smart and honest about the company as you say he is, Why would he sell the stock present rock bottom prices if the current market price of oil was his only concern? A big rich executive like him must have many friends and resources to volunteer some minor financial assistance in a pinch....to keep the boat afloat, so to speak. I'm sure the people who know him well would back him up if they knew the facts as you understand them. Don't ya think??
Given our experience with SOB's management style and ability, is it rational to believe he can do better in the future? It is obvious his game plan is to continue the "Plunder and Blunder" approach he perfected while digging random deep holes in the bourbon state of Tennessee. Different use for the barrels there although they were able to fill'em up to a profitable level more consistently.
It wasn't oversold because of margin calls. It was sold because of fundamentals. Some people can understand fundamentals.
Of course he could always stick his hand into the treasury pot and pull out another half-million shares (or more) without paying for anything.....as he is wont to do. GO SCOTT, GO!
You are a little naive. If things were OK I am sure Boruff could have arranged to get financing to hold on to shares that HE says he considers cheap. Apparently it's not worth the effort or the risk.
I used to know some of the heavy shorts years ago but I was never one of them. Thank you for refreshing my mind on THE FACTS, so I thank you also.
Another quirky conundrum: didn't a recent filing of passing out new stock to officers specify the stock can be used for covering shorts. Wonder what that means??? Just do DD
The fact that they are considering paying the dividends demonstrates another example of bad management judgement. I do not believe they will ever be able to sell another issue of preferred so it would be much wiser to hold the cash rather than to squander their remaining liquidity.
Verado, this is the first thing I have seen you write that I disagree with on fact. I don't know if the law has been changed (there was talk) but the perfect short is one that you do not have to cover and expose yourself to resulting taxes, i.e. the stock goes to zero and you never have to buy it (to defray or avoid taxes). I used to be friendly with some big shorts and they chuckled like crazy when a situation like this popped up with a probability of a large profit with no tax consequences. I recently finished selling the last of my position (very close to six figures) and I owe you my gratitude for pointing out some things that were very evident except to those of us who were hung up on the oil that never developed. It amazes me that there was no play here on the knowledge that River Road was seling their long time 2.5 million share position and MILL's officers were rushing out the door. That is when I started to sell heavily, when the handwriting is on the wall and you don't have to be a genius. Any bulls left are defying the law of gravity. It also puts an asterisk on the story of why Deloy Miller left the company. You did it all without the BS you were accused of by the losing team - but you were entitled to the occasional braggadocio. I thank you and applaud you. It is almost checkmate.
Verado and I went to the same school, but not at the same time. Let me just say it is a great school and he, apparently, was a good student because he learned - unlike most of you redencks out there. In addition to finance and economics I studied some philosopy, including Socrates who famously said: "It is not the opinion of the many that counts, it is the opinion of the few who know." He, almost alone, is the one person who not only speaks the truth but he backs it up with facts which, unfortunately, can not be understood by those here who refuse to learn. Thank you Verado.
Several weeks ago they announced some significant sales and seemed to sell in a panic. Then they discovered they no longer have to report their sales so they are doing it in the privacy of their own ignorance.
Oh what a wicked web we weave when first we practice to deceive. (I Learned this from my mother and associate it with Miller. A very practical and useful saying). Perhaps this is why they don't say much anymore except corrections and retractions.