not sure i understand why this is a bad move. they are getting a piece of (8 i think) vessels at what looks like 50-75% of book value. No guarantee of return but they IPO'd this a few years ago (at a high price) and now they are buying back at low price. Why do u say its "down the drain"
i don't think anyone is suggesting that "these guys" are stupid. They simply (ex Watsa) made a bad call both timing and the specific name. It happens to everyone eventually. Just look at an NG index or fund vs XCO; XCO down 80% relative so can't blame it all on NG price. Whether $5 is a bargain, i don't think any of us really know but I wonder what is the upside on a buyout? 20% maybe given recent acquisitions so $6? and then what is the downside? For a little guy like me, that is key.
this co. is totally different today, not to mention depletion and lease expirations, than back when NG broke $2 so i wouldn't use that analogy. Thanks for pointing out my call on not paying the div - i can't be right all the time. I still think a chance it could be cut in the future although admittedly they have some room to add debt. I really have no idea what wilbur is thinking...but those augie calls were a good buy....gl
yes, willy that might be a bummer for some...of course, one could have bot a ton of teenies quite cheap ... or maybe the exact opposite happens - the earnings are a poop, cash flow goes -tive with KKR buyouts, and NG continues its downward trajectory....
who knows....but once again thanks for your sincere advice and concern for the welfare of my small boutique
you are missing the point - take a look at say FSNGX vs XCO.....its not NG investing that has been the problem....is XCO, plain and simple....
" The market is so over supplied,"
really? - here is what you said two years ago when u were a TNK bull counting divvies:
TNK has visibility. The euro does not. TNK's problem is that the number of ships outnumbers the charters. However as time tics by, ships are being removed from the water, and orders for ships are being cancelled. So we are approaching balance.
you were wrong then weren't you....i guess u rode it down and got taken out in the 2s....ahh but what should we expect from an mreit specialist pumping NLY, or is a cloud computing expert calling for VMW to go BK...or maybe you are an O&G savant bulled on LINE...
you are a fraud napp and have been outed....now that would make a good SA article