Salary cuts are imperative and should be done immediately. If they care about shareholders they must do this.
If not shareholders should act to remove them.
The stock could soar.
They will be a much bigger company in future.
They can sell 20 million barrels per year. At $80 per barrel that generates $1.6 billion per year. Taking out interest costs, overhead , 300 million program, Breitburn could generate almost 3 $ per share cash flow easily. What is wrong with this? Today's action is crazy.
I used to own it but thank goodness I got out on the last pump in 2014.i never trusted management. I strongly believe that insiders stole over $10 million from the company. They should not exist and be prosecuted for criminality.
Oil was up 10% in the last 10 days. Yet Bbep is up 4%. In terms of its peers it is a bummer stock. Why BBEP doesn't get any respect is beyond my comprehension. If you are leveraged in the oil business and the price of oil is $100 you are a hero. If the price is down you are a bum. I remember when the dividend was $1.00 at $60 per barrel the dividend was fairly covered. Now with the cash infusion and the dividend cut to $0.50 annually, dividend is not a problem. I can't believe the stock is trading where it is, it's a joke. Stock should be trading at $8 plus with an upward bias.
Short scramble has not occurred yet, if ever. A short scramble would easily lift this to over $8 per share.
It's all marketing.
Sad stock and sad mgmt.