Not a bad speculation play for $1..
The oil price rout has left many energy companies teetering on the brink of bankruptcy and left many of their assets appearing cheap. Private equity funds have been mobilizing to hunt for favorable deals.
HERO already restructured their balance sheet with little debt..
NEW YORK, Feb 11 (Reuters) - Blackstone Group has launched a fund to finance the troubled offshore drilling and services sector, the U.S. private equity firm said on Thursday, anticipating a buyer's market as low oil prices set the stage for restructuring and consolidation.
Creation of the Blackstone fund was announced on the day that Hercules Offshore Inc, a U.S.-based offshore driller and liftboat services provider that emerged from bankruptcy in August, said it was exploring strategic options, including selling itself.
Didn't have much dry powder but had my finger on the trigger at $4.17 wished I would have pulled it..
Selling out for $60 Mil would work for me.. Giving us around $3 so we can move on.. I wanted to holdout for $100 Mil but the sector it's too extremely distressed..
Lowered my avg cost to $2.29 this am.. I'm thinking that the hard assets that is paying rent is worth more than today's Mkt Cap unless of course the porkey"s are scamming shareholders..
Hey Mike if it that's what it takes to stay above $1 so be it.. Sell some of your shares if you think it's not worth more than $20 Mil.. Then maybe take some meds due to years of torture..
I would say $15 is out of the question since the Oil market has further deteriorated to pathetic levels.. a range between $2.50- $5 is still pennies on the dollar and very possible.. The maersk deal still has decent value..
had my finger on the trigger yesterday when it hit $17.90 for some of my shares.. big regret for not pulling it.. Left my limit order $17.99 seems like light years away now.. Needed the extra dry powder today anyhow long term should be fine..
Yes I did.. 170 mil penalty.. Drilling for Oil doesn't make sense at these levels.. drilling for NatGas for GB still makes sense.. At least from what I understand..
I didn't think that they would speculate with a company like HERO.. An extremely high risk/reward ratio here.. Just a pure gamble on there part or maybe the company is being sold at a massive deep discount?.. Even with a major discount it will still be a lot higher than it is today..
Some of these miners are trading at levels that haven't been seen since the 70's & 80's when gold was a fraction of it's price.. So it seems they were extremely oversold and there's plenty of room to move higher.. BTW you would think that energy costs being extremely low would help these miners with their operating costs.. Just a thought..
Between HTZ & CHK Carl Icahn is losing some of his wealth but he's still doing better than all of us..
I went ahead and bought some shares this am.. It seems that they bought some Oil properties.. anyhow this is still a speculative play for me as opposed to an investment.. Avg cost now is $2.43.. Will this fall into the $1's?.. Very possible..