One good thing about this is that even if the gas discovery doesn't work out GURE "may " raise the $1.20 price that they had contractually said they would support. With their real money in the game we could see GURE become more shareholder friendly about increasing the share price.
Sentiment: Strong Buy
on RSO covering the current dividend for the rest of 2015? If RSO can - the share price should not go much lower because of the 14% dividend - unless there is a total market selloff which is possible. With the bad job numbers Friday there will not be a rush to raise rates although there may be some positive spins on the job numbers Monday. Already I hear bad weather was the culprit.
Harper lied about taxing the Canroys-an election promise that he didn't keep for one thing. The 15% foreign tax is another thing- if you are getting thousands from Canada in dividends you will only get hundreds back on your US taxes. Probably the biggest issue for me is I have TDAmeritade and can not buy or sell on the Canadian exchanges and many of the Canadian companies listed on the US exchanges are so thinly traded creating a issue if you take a position of any size. Also at this time energy is a large part of Canada's economy and with energy in an extreme bear market it also makes Canada less interesting. ..May be time to start looking for some bargains in Canada!
Article on Seeking Alpha on OCN and ASPS that says several funds have taken large positions in HLSS to make sure the NRZ/HLSS deal does not go thru unless OCN and ASPS benefit from the deal. They have large positions in OCN and ASPS. You can access the article on SA by using the OCN ticker symbol/
1. We know they are sincere about growing the company-slowly and conservatively. 2. We know they want to keep total control of the company. 3. We know they are not interested or concerned about increasing shareholder value - including share value of shares they own. 4. GURE management really likes to grow the cash the company has and they do not like to spend the cash for anything.....So all of this makes me come up with some thoughts about would could happen in the next few months. 1. They may do nothing as they have for years concerning trying to raise shareholder value - history would lead to this conclusion even if the gas discovery proves to be valuable. 2. If there is a buyout what I see possibly happening is the financial companies that GURE says contacted them will use their money for a buyout - they would possibly only have to buy around 20 million shares or less at $3 to $4 a share to own the company. I assuming deals with companies that were issued shares in the former take overs. And if there are no deals they would need 26 million or so shares at $3 to $4 a share. $60 to $100 million would buy GURE. Now if the gas discovery is profitable they can relist on Hong Kong or other exchanges a far greater value. GURE will definitely retain control of the company and will not use their cash for a buy out. The company or companies that approached GURE will get some shares or a % of the money from listing on another exchange. If GURE can be relisted on another exchange at 3 times the value of the current price they would have no problem paying the fees for paying for the buyout.
Sentiment: Strong Buy