It does seem lower oil prices are driving down GASS. Perhaps it is because the advantage of gas over oil has decreased.
However, there is one overlooked big advantage to lower oil. Shipping oil expense will decrease. This factor should help improve profit margin.
After listening to CC and reading Q press release, I am positive.
There main plus is with all the non-cash impairment writedowns, PGN will have a very low tax rates for many years. That is, earnings will increase more than expected.
Of course, you need earnings to take advantage of a low tax rate.
How does one value the new NCT and SNR?
What are expected dividends on each?
The Street has already voted on SNR as the undervalued entity upon spin-off.
Thx and LOL
Both these shippers are in same gas subcategory. GASS has long track record, including dilutions. LPG is fairly new IPO, with promise of future expansion.
Which is better investment? Comments?
WNR completed acquisition of wholesale business. NTI is next. See price rise.
WNR has already purchased management component of NTI. I think the announcement will be done by year-end.
OCN dropped 20% due to NY AG charging major violations related to late mortgage payments.
RESI has dropped 6.5% on no news. Does OCN affect RESI?
My research of presentations and press releases show no connnection. Perhaps if foreclosure by OCN are illegal, acquisition by RESI may be deemed null?
The logic that dictates a much high premium for MITL is higher profitability.
SHOR EPS estimates for 2014,2015 are 0.19 and 0.23.
MITL EPS estimates are 0.87 and 1.21.
The main positive of this bid is it acts as a wakeup call to examine takeovers in this industry.
MITL made a $540M bid for SHOR (8.1/shr). The bid has been rejected (initially).
Consider if the situation was reversed, and a communication company were to bid for MITL. Based on EBTIDA a $15 Bid would merited.
Sentiment: Strong Buy
Despite the terrible drop, I m long EXXI. That said, I have one salient comment on your table.
PV-10 alone does not imply value. if debt equals PV-10, then value is zero. In the case of EXXI, PV10 is $7.6B and debt 3.8B. Value is spread over 94mil shares and whatever special interests have their fingers in the pie.
SA article by Wilson is a "Pro" article. That is, only premium subscribers can view it.
Can someone publish relevant sections.
I guess Microchip forward guidance is hurting TSEM along with other semiconductors.
Usually, high debit with low cash flow is a recipe for bankruptcy. These type companies have virtually no tangible assets that can be quickly converted to cash.
But, E&P companies like EXXI do have tangible assets- oil reserves. For the right price, cash can be raised fairly quickly to make debt payments. With high PV-10, EXXI can easily sell off some properties.
Bottom line: there is no bankruptcy in EXXI future.
Hold and wait for turnaround.
Amazing, there is no interest on this MB for $1B company.
I'm comparing two large construction outfits: CBI and TPC. Both sell for about 9 PE. TPC indicates slightly higher growth.
The major argument in favor of CBI is the Buffet factor. Berkshire owns CBI. That seems to be a pretty good endorsement.
Any thoughts on this comparison?
CONN issued a poison pill in the form of a rights dividend. At first, move was interpreted as positive: company for sale.
Today CONN down sharply. Perhaps funds are dumping because unsolicited takeover is much more difficult with the poison pill.
I listened to the webcast of the Sep 30 Deutche Bank presentation by EAC.
I lot of talk about business efforts throughout world. Decline of military spending in Afghanistan hurt. Current decline in Oil E&P will hurt. Expansion in firefighting, Latin America oil, utility construction will help. China contracts are a distant hope, but any news would be nice positive.
The most negative aspect of the presentation was financials. There was barely any talk about disappointing performance in 2014. Revenues 350-370m. Nothing about 2015 projections. Nothing much about merger integration and synergies with Evergreen acquisition.
Book is $12. NAV is $20. Apparently, helicopters don't depreciate very quickly.
Bottom line: I believe downgrade by Stiefel following presentation was justified. If macro environment, including oil, deteriorates, EAC may not rebound much in 2015.
Indeed, Sooner released SEC 8-K announcing 2nd distribution:
In connection with the Distribution, each stockholder of record of the Company as June 11, 2014 (the “Final Record Date”), being the date on which the Company filed its Certificate of Dissolution with the Secretary of State of the State of Delaware and closed its stock transfer books, received approximate 0.104 Shares (rounded up to the nearest whole Share) with respect to each share of the Company’s common stock held by such stockholder as of the Final Record Date. On July 30, 2014 the Company had made a distribution of 2,095,879 shares. Following the current Distribution, the Company continues to hold 360,585 shares of REGI common stock (the “Retained Shares”). Stock distributions now total 90% of the Shares.
Note: There will be a third (or more) distribution. Sooner released 1,037,149 shares for 0.104 conversion ratio. There is remaining 360,585 shares. Remaining distribution should have conversion ratio of about 0.036.
All we need is extension of biofuel subsidy and a nice spike in REGI.
Sentiment: Strong Buy