Company doing well, has enough DCF to pay out Distribution ( a big one) and yet stock is going lower based on Fears of oil prices and BK' or reorganization of few companies, like CHK, LINE, etc. Not to mention other MLP's cutting Distributions, also does not help when majors like COP cut divvy. Finally, ETE & WMB merger proposal having problems because of rumors of CHK demise.
no cut in distribution, being paid on the 12th of Feb. They have enough money in DCF to pay out. So if it is headed to $1, then misguided investors are giving us a gift. That said, is it possible , it falls further? Yes, but its a screaming buy!
If deal is all stock, where do they need 17 bln$?
the 6 bln $ needed at $8 cash can be paid in stock,
how does this sound:
cash deal $8 + 1.5 ETE share (4.30) X 1.5= 6.45+8.00 cash or value of $14.45 or broken down, simply $8 cash and $6.45 in stock.
All stock deal: Instead of $8 cash 2 shares of ETE + 1.5 ETE as mentioned= 3.5 shares of ETE for 1 WMB = (with this announcement, stock should double to 8.50 or so and the value then would be 8.50 X 3.5 = 29.75
what seems better to you? Even if it were a 3 shares of ETE deal for 1 WMB= it would be close to 24-25$ as I expect stock price of ETE to double once all stock deal is announced.
if the deal moves to all stock, you can for sure bet, that ETE is going to double, then when you get ETE stock, chances are your divvy is safe and even after doubling, there is a 11% yield. How do you like that? Not to mention, the combined entity of WMB + ETE is going to take off for solid future divvy gains, America will soon be Exporting NAt gas, Oil in a big way! The demise of THe Old Russian Federation and Former States will be swift and ugly thanks to the USA.
I am a WMB shareholder and am perfectly willing to get ETE stock. Combined, the entity will be greater than in 2 seperate companies.
wmb signed a new contract with CHK a few months back in the summer. For lower prices, but greater volumes. Hence CHK is now WMB 1/3 business.
I dont think Carl Ichan wil let CHK file for BK without protecting common, he owns 11% of common shares.
of an option!
That usually means, they open a few $ lower and pull it up to 120
be prepared to exit put trades at open (that is my theory) Go long after first 15 minutes if this opens lower and starts to get evened up or advances.
Efficient management of our stable asset base and aggressive cost management are driving meaningful value even in today’s difficult commodity price environment
The company said it has sufficient resources to keep operating in the meantime, Reuters reports.
read his comments!
Instead of FANG, Cramer ought to use LANG
4 high rate growth stocks with poor outlooks!
I have had some bad experiences with certain stocks: Turbodyne , TALK, just to name a couple. Management were lying in the case of TBDN turbodyne and they were a fraud and out of biz. TALK Tel Save Holdings was also rogue mgmt. Lost lots of $$. There is a reason for why the CFO left, almost always is. He must have suspected some shennanigans and did not want to lend his name to that. This guy Chip sounds like a bully, I wont be adding because I fear mgmt is looking out for themselves not shareholders, but since I have a losing hand in this, I will have to wait and see. I dont blame anyone for exiting this stock, maybe it is their thinking that has got everyone nervous. That Stifel call was a sure Tell!
The important part to note about this company is it is making money, as long as the company
Has earnings, it's going higher! Trading at 1X earnings without distribution.
I can't believe I didn't buy any at 1.40