Wed, Sep 17, 2014, 5:34 AM EDT - U.S. Markets open in 3 hrs 56 mins


% | $
Quotes you view appear here for quick access.

Berry Petroleum Company, LLC Message Board

richardleeds 48 posts  |  Last Activity: 16 hours ago Member since: Apr 1, 1999
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • With the sale of assets the company reported that
    it paid down total debt and lines of credit to $350 million.
    That is still a lot of debt for a company that has a market
    value of $150 million.

    What is going to happen with tax loss selling in December?
    I would not be surprised if this goes lower still. It might be
    an excellent buy come December.

  • Reply to

    NEWS 9/10

    by dukeswaikiki Sep 10, 2014 10:50 PM
    richardleeds richardleeds Sep 15, 2014 7:40 PM Flag

    Pie in the sky.
    Look at the balance sheet, current liabilities exhaust all the cash.
    When there is no cash left at the end of the year they will have
    to issue more shares. Right after tax loss selling, so I suspect
    the shares will be lower in 90 days than today.

  • Reply to

    I still like this value play

    by booleansearcher Sep 11, 2014 6:53 PM
    richardleeds richardleeds Sep 15, 2014 7:32 PM Flag

    management is questionable as share price is at low of the last four years and
    if management has cost overruns on the high rise towers or high vacancy on the
    towers the risk of a dividend cut is substantial.

    You have to ask yourself when most markets around the world are at highs for the last 5-6 years why this equity is at low in its history. That says a great deal about investor confidence and risk.

  • Reply to

    Reason it is still overpriced

    by richardleeds Sep 15, 2014 12:41 PM
    richardleeds richardleeds Sep 15, 2014 7:21 PM Flag

    The cheap acquisition price of these two rigs has been wiped out by the current selling price of the shares. People that have paid $20-25 dollars a share were basically paying triple the price of the rigs. So it is not a good deal for shareholders in that price range.

    They have a $500 million backlog but much of that goes to operating the rigs.

  • Reply to

    I still like this value play

    by booleansearcher Sep 11, 2014 6:53 PM
    richardleeds richardleeds Sep 15, 2014 12:53 PM Flag

    The company equity is valued at $500+ million.
    The risk to this equity is that the two high rise towers
    have a total cost and capex to open them as two dorms
    of about $200 million dollars of which Campus is on the
    hook for 1/3 of the cost. The verdict is still out on this
    venture and that is a substantial risk. Secondly, management
    screwed up on the Copper Beach investment, an investment
    which they do not control and which they walked away from
    buying the other 52% which tells you that there are issues
    with Copper Beach, both the portfolio and they do not operate
    the investment.

  • richardleeds by richardleeds Sep 15, 2014 12:41 PM Flag

    Ensco, Noble, Rig are all selling for less than 1X book value of the assets
    on their balance sheets. This company is selling close to 3X book value of
    its assets.

    Second, the contracts are short term now, about a year left and when they
    are close to expiring in a year a lot of shares are going to try to exit all in
    the same 90 day period and AWLCF will probably see constant pressure
    from here on out on the price including the tax loss period during the last
    30 days of the 4th quarter as many that are upside down will sell to take

    Thirdly, what happens if one of the rigs takes some time to re-lease the
    rig and they have a quarter with no income, just debt payments. The
    negative news usually drives down shares.

    Three reasons this is dangerous, especially during periods of war
    and economic difficulties.

  • Sanctions are U.S. and Europe and so
    SDRL is not going to do business with
    Russian Energy giants.
    These sanctions will hurt international
    energy related companies.

  • richardleeds by richardleeds Sep 12, 2014 1:14 PM Flag

    Shares have gone down to low of the last 5 years and most investors
    including myself have lost big time over the last 5 years. Management
    that watches stock decline for 5 straight years should have been fired,
    but obviously, the Board of Directors is controlled by management so no
    one is going to make any serious money in this investment. I am getting
    ready to dump at the bottom and move on to something that might double
    in price.

  • Reply to

    What's driving the price drop today?

    by asiabynight Sep 12, 2014 11:53 AM
    richardleeds richardleeds Sep 12, 2014 12:53 PM Flag

    Economic war with Russia by U.S. and Europe. It is going to hurt all economies that
    provided services and capital.
    I imagine Putin will even look negatively on Russian businessmen that purchase high
    end German cars during this economic war.

    Also, U.S. is go to expand war in the Middle East. War does not help the economy it
    strains it.

    Just lots of bad news nothing to do with RIG business, but remember lots of drilling
    platforms being delivered during the next 12-24 months when world economy may not
    be growing much and Europe might be contracting.

  • Reply to

    Shifting pressure.

    by bigbear.2010 Sep 12, 2014 10:45 AM
    richardleeds richardleeds Sep 12, 2014 12:27 PM Flag

    The price had run up and it was selling close to 3x book value. Even though the platform rigs were purchased at a good price, investors were paying triple the cost of those rigs to the company. Not a great deal.

    Also, the contracts are going to expire on the two rigs in another year. What happens if the new contracts have down time and no dividend? Also, what happens when all investors try to unload during the same quarter when these rigs are close to expiration. A small investor group on this exchange can get killed when too many of them see the risk all at the same time.

    That is why most investors in this equity might not make any money even with a high dividend over 2014 or 2015. Investing in this security is more like gambling than investing unless you purchase at a price that is at the bottom or very close to the IPO.

  • Reply to

    Which brokers withheld 15% on the dividend.

    by aapl_2000 Aug 26, 2014 4:00 PM
    richardleeds richardleeds Sep 12, 2014 3:57 AM Flag

    Etrade told me that the withholding rate of 30% and the additional ADR fee was done at the source in Russia. They also said the dividends were non-qualified, so taxed at ordinary income tax rate, not preferential 15% tax rate.

    Lousy dividend after taxes take 1/3rd.

    Until stock brokerages around the world recommend the shares, the share price will probably remain week since small number of international investors will not drive shares higher.

  • Reply to

    A nickel away from the 52-week low

    by biotechprofiteer Sep 11, 2014 3:17 PM
    richardleeds richardleeds Sep 12, 2014 3:12 AM Flag

    Beside the weakness in the NOK, the price of the shares is almost three times
    the book value of the company. Why pay 3 times the cost of the balance sheet?
    Three times the cost of the drilling platforms makes them pretty pricey and the
    contract price for the rigs has a short contract time. What happens to contract
    prices for everyone in another year? By guess is lower prices and what happens
    when the current contracts expires? Most investors will try to get out in 12 months
    and there could be a large number of investors trying to sell driving the price

  • Reply to

    A Great Run Company with a GREAT Dividend

    by taffy123414 Aug 18, 2014 4:49 PM
    richardleeds richardleeds Sep 5, 2014 1:34 PM Flag

    Not a great run company. They purchased 48% of Copper Beach with an option to purchase all of it and then did not purchase the balance of the company. So they have a minority position with no control on an investment that they decided was not performing sufficiently to justify buying all it.

    Also, they are building out two speculative high rise towers for high end student dorms.
    The verdict on that risky transaction is not in and if it does not perform it will result in a further share price decline which will wipe out any dividend you earn for the next year.

    The investing public is saying Campus Crest is too risky and management has not demonstrated that they can enhance shareholder value, that is what the share price is showing.

  • Reply to

    Don't buy this until it hits Normura $16 target

    by masleym Sep 3, 2014 10:32 AM
    richardleeds richardleeds Sep 3, 2014 3:38 PM Flag


    All the insiders and early investors got in around $14 U.S.
    Between the dividend and appreciation they made a killing during the
    last year, 50% return.
    Time to take profits and get back in at $15 or 16.

    I still believe SDRL is a better buy for long term appreciation.

  • Reply to


    by richardleeds Aug 5, 2014 5:59 PM
    richardleeds richardleeds Sep 2, 2014 2:10 PM Flag

    I looked at this as a possible investment.
    When the share price has been in a free
    fall even though cheerleaders have pointed
    out that revenues have gone up for each
    of the last three years, I ask why is the
    share price dropping and dropping. In
    deciding to make an investment or not to
    make an investment you have to take a
    thorough look. The projects are all monster
    projects that will take 5 years before they
    start to produce once you build out the
    infrastructure which will take billions for any
    project they do.

    Drilling 6 wells in Australia on land holdings
    greater than Chesapeake Energy is a joke.
    Chesapeake energy operates in the U.S.
    which has the infrastructure in place and
    CHK drills over a 1,000 wells per year.
    The 6 wells being drilled here is a drop in
    the bucket.

    Why is no major investor jumping on the
    bandwagon here. A year ago Carl Icahn
    bought a billion dollars of CHK when it was

    Has any investor in this company not lost
    money on this? I will come back each month
    to look at what is going on but the share price
    weakness of 2014 says far more than all the
    posters on this thread. I bet my investment in
    CHK at $21 is going to make me more money
    over the next 12-24 months than what the
    investors in this message board make on
    this investment. There will be plenty of time
    to move into this equity if investor sentiment
    ever changes on this.

    I am not a short. I was looking for an investment,
    and a 50% share price decline said plenty.

  • AWLCP is 3.5x book value.
    SDRL is 1.75X book value

    arguably you are paying 175% of the balance sheet (cost of rigs) to buy the rigs and contracts of SDRL while
    paying 100% more or 350% for the AWLCP (balance sheet), its rigs and contracts. Seems to me that investors are chasing the higher yield of AWLCP without looking at the best buy (better rigs,
    better contracts, better purchase price of the assets of SDRL.

    At some point in time AWLCP should see its share price drop from 3.5 times book value down to SDRL's book value of 1.75 or alternatively, SDRL's book value should increase to AWLCP's multiple.

  • It makes no sense to me that their debt has been increasing to pay the dividend.
    Why borrow money to pay out a dividend? If the cash flow is not sufficient they
    should have cut the dividend. In addition they are selling land and production
    in order to obtain $5 million to cover the cash flow shortfall to pay the dividend.
    I am not impressed and after looking at the company would not make an investment
    in ZARFF until the share price drops further.
    A better by is SURGE. I am up 60% over the last year and in addition the dividend
    is fully covered by cash flow without borrowing or selling assets to pay the dividend.

  • Etrade told me the withholding rate was 30% plus a 5% fee from Gazprombank, a subsidiary of Gazprom for acting as paying agent. Between the Russian government and the company fee of 5% these Russians are a bunch of thieves. I sold all my shares.

    Not only is this company a tool of Putin who asked them to pay for the Olympic games and other state projects but they are basically stealing from foreign shareholders. I dumped 15k shares this week at
    a small profit. Too many good domestic (U.S.) and multinationals to invest in where you not only collect a dividend but also benefit from share appreciation. Take a look at Devon, Anadarko, Noble Energy, EOG over the last two years. Almost 50-100% appreciation in all of them. No appreciation in the Russian energy companies.

  • Reply to

    Which brokers withheld 15% on the dividend.

    by aapl_2000 Aug 26, 2014 4:00 PM
    richardleeds richardleeds Aug 28, 2014 2:02 PM Flag

    My Etrade brokerage charged a withholding rate of 30% and an additional fee of 5% for the agent bank, Gazprombank. Total was 35%. Any other investors paying that collection/payment fee from the bank? I could not believe the collection/payment fee from their 100% owned subsidiary bank.
    Any other investors paying that bank fee of 5%????

  • Reply to

    A Great Run Company with a GREAT Dividend

    by taffy123414 Aug 18, 2014 4:49 PM
    richardleeds richardleeds Aug 25, 2014 1:31 PM Flag

    say a great run company, how come the investing public has the shares at the low of the last 4 years. A dividend is nice but there has been no share price growth. Total return after the 15% withholding tax is not that great compared to many other dividend payers that also have share price appreciation.

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.