Look at the whole market today. Especially most in the energy sector.
Oil/$bbl dropped a bit and the market acted as if it is headed back to $25/bbl on a fast track.
Those are strong headwinds, even with good numbers. Give it some time. When/if energy $Prices start further climb toward $50 & above, BTE pps will gain strong traction.
JMHO of course ...
Painter ... You have been in runoff for years!
Are you possibly a perpetual annuity, or just a leaky faucet??? -:)
yes, a little humor.
still .... what other group has been playing together for over 50 years!?!
And ... stilll, get this ... the Stones, year after year, gross more $Revenues than any other band act ever.
and ... what other CEO and COO have been in their positions for over 50 years? In a major $Billion dollar enterprise?
and can still ... ummmm ... Shake their B oo ty ....??? -:)
perhaps research his background and experience before dissing?
He has quite valuable experience in sub-prime recoveries, among other things. He has also done an excellent job in stabilizing AMBC given challenging conditions. The PPS has slipped, mostly due to the current PR situation which he also inherited.
As for compensation, more than fair. He has also put his own money up and bought significantly in the open market.
One of the few CEOs worth every penny.
JMHO ... of course...
cube - to me this seems somewhat similar to the cohen r.e. entities, specifically rso, back in 08/09. actually ... very similar. yes, this is a different time and different sector/market, yet the actions are very typical cohen operations procedure.
jonathan, ceo at rso also, kept all distributions, common & prefs, at high levels during the credit meltdown. almost all other reits dropped or eliminated common divs & some suspended pref-divs. jon kept on expressing a very strong optimism during every conference call back then, and kept assuring investors & analysts that rso was secure. he actually bucked the trend of all the other reits, and rso stock held fairly steady. however - what also was happening, and has been coming home to roost since around 2013 - rso was sacrificing future revenues/funds flow to maintain market cap during 08/09. they have had to reduce divs as well a reverse split since then. currently, rso is emerging back on track, but it will be years before the market cap / pps rises to prior levels, and they are actively working on rebuilding their business model.
i will hand it to them, they are quite financially creative and have pulled rabbits out of hats in the past.
long story, yet ... perhaps instructive re - arp??
jmho ... of course...
Bear, I too have been monitoring energy pricing / cost metric articles for a few years now.
I believe that everyone understands - and even most articles refer to this - that getting a barrel out of the ground in SA is less than in US. However, the big difference when discussing 'break-even' point is that the whole country runs on energy production, has built its entire national overhead, government, and population support on energy. So, the break-even becomes more realistic when there is inclusion of nation-state expense.
Yes, it may be less expensive for them to bring a barrel out of sand. In practical terms, the question of a survivable nation-state to do that is acknowledged. This really has become the crux of the 'price war', and will be played-out more assertively this year, IMO. We are already seeing extreme social/cultural/political instability in numerous energy-dependent nation-state providers. Examples - Venezuela, Ecuador, Nigeria, others along the Russian borders. Even SA, last year had to issue bonds in the $Billions for government support. Already this year Rating agencies have cut SA credit rating, thus increasing their borrowing costs. The IMF & other others now estimate SA could BK! before 2020. And, as every day goes by, that numbers tends to shorten. 2019, 2018 ..... Tik Tok.....
Somewhat of a game of chicken, with lots of collateral damage all around. And ... I am just guessing here, it would not surprise me if the Saudi Royal Family has prepared an - 'Exit Strategy'.
JMHO ... of course..
Not sure what your game is .... ???
I've been in Preferreds for decades across multiple sectors. never seen a reverse split on Prefs even when the Common does a R/S. Prefs are far more akin to debt instruments. Par and Y% are .... Fixed.
jus' sayn' .....
question about 'winding down their business' - are you implying that 'winding down' means deliberate fall to BK? Hmmm??? Preferreds are paid ahead of Common, and, typically as firms unwind, all debt needs to be cleared/called from balance sheet. that would also apply to Prefs, imo.
I did not read Zoo's posting as really 'bashing'.
fairly straightforward statement and observation. also realistic.
i have seen the same many times in other pref-issues whenever there is lots of fear and volatility in certain sectors. you could have seen somewhat similar a few days ago with the DB prefs.
jmho ... of course...
Cube, perhaps a little expanded consideration is due here, that can absolutely have a quite material impact on global outcomes -
While, maybe, some OPEC producers can 'Profit' @ $30/oil, when the overall infrastructure/government/populations/lifestyle/etc... are included, the numebr is far greater. And ... here's the very material rub ... regardless of $30/bbl profit, when maintaining your kingdom and keeping your head is double or triple that, it can cause some serious political/social upheaval. even with - Trying - to institute some 'austerity' measures, how far can that go? We are seeing now seeing smaller fiefdoms starting to fracture. Just south of old soviet block. Africa, So.Am., and eventually, the lesser sovereign-wealth-holding mid-easterns. add to that cost of ongoing war/conflict. really ... not sure $30 is sustainable for long-term. or ... if that is where energy-pricing due to abundant supply rests, then, I think we will also see some fairly violent global political/social upheaval in the not-so-distant time???
JMHO .. of course ..
maybe ... maybe ... its possible? though could present lots of obstacles & issues. such as .. - big lawsuits from pref holders. - sends extremely bad signal for any future investors in anything associated with nrf ... - would certainly affect any future consideration around cost-of-capital ... - may even spur some regulatory actions? not such a good idea.
i have held a pref, still traded on exchanges, of a privately-held reit, for many years. tho reit is private, the pref has always paid divs. low volume, stays in a channel mostly.
jmho ... of course..