Nobody should be looking at past non cash charges like impairments for their investment decisions. What matters are projected net cash flows
that is not short term thinking. By withdrawing let us say 1/3 of O/S for a negligible investment ($30-40M??) you dramatically increase EPS once you are back in track. Moreover it would give some signasl to the markets that they have some faith in this comopany and that PGN is here to stay. Buying back bonds is also a good move although they seem to be very illiquid hence difficult to put in practice.
you need to make up your mind. Do you want them to buy back debt or to keep cash (to keep paying their salaries) in case the oil price keeps falling (instead of reducing fixed costs and lower their break even point)?
short term?? PPS has declined by 95% in the last 12 month!. I would not call 1 year a short term movement.. Management can do a lot to support PPS .such as buying back shares
i think we should contact all the main institional ownersas well to check what kind of pressure if any they are putting on mngt
at the moment i see reports showing anywhere between 59% and 75% institutional ownership. I wonder what kind of pressure they are putting on management to ACT. Ultimately I believe if they do not act, they should be ousted
I find myself forced to write to you , because of the terrible pain that PGN shareholders have been forced to endure in the last 12 months. I have been a believer and an investor of PGN all along, as I think that PGN has been unduly penalized by not only falling oil prices , but also a very depressing communication tone to the markets and lack of action from a stock price support stand point. Bottom line PPS has reached ridicoulsy low leves (market cap is less than 1/5 of H1 2015 operating cash flow and equal to ca 2 weeks of revenue). Peers with similar fundamentals trade at 30-50 times PGN market cap.
You must take action to defend your shareholders as these are your ultimate employers. My recommendations are:
1) try to be a bit less pessimistic in your PR's and conference calls. It always sound as if the company is going to be bankrupt soon, whereae it has a solid cash flow generating business, a still sizeable backlog , debt not maturing before 2019 and with oil price probably reaching the bottom (SLB CEO is convinced so, and proof was the recent Cameron acquisition) there is room for a quick and solid recovery along with backlog replenishment.
2) do something about the unduly depressed share price by buying back some of the shares. Even 10% would give a significant confidence signal to the markets and shrug off the depression mood that you seem to instill into the markets every time PGN comes out with a statement
3) buy back some of the bonds. Even small quantities bought back regularly at huge discount , can provide significant gains.
A concerned PGN investor and CFO
Fundamentals will prevail. Shorts will have to give in finally along with oil price recovery. Just buy as much as you can as there is no way a company having $350M FCF in 2015 and based on current backlog (even w/o Brasiil and Mexico) $250M in 2016 w/o even considering new contract / extension can possibly trade at $60M.
Have a look at just released SA article.
Sentiment: Strong Buy
Rookie, honestly but do you get paid to write such BS on MB's? Huawei has ca 25% market share, ie $3B revenue per annum. Cisco ca half of the market.
Do you think that $3B per annum is small revenue earned using somebody's else patents? Then why do not we just starting making copycat iphones for $3B per annum?
you assume that no more contracts and no more extension will be obtained from now on, which is not realistic in particular if oil price recover as SLB CEO is betting on.. I worked as financial controller and finance director in oil services major corporations for more than 10 years and currently CFO of a privately owned industrial company in the power sector. And what is your background?
Petrobras contracts are ongoing, Mexico was not material on lost revenue. Most of 2015 activity is already booked and year is almost finished. You can bet 2015 earnings will be close to $2
My forecasted earnings for 2015 are $2 PPS (h1 2015 was $1.19) . 2016 will depend on when oil prices will recover, I expect to be at the same levels of 2015 earnings. Without even considering Prospector acquisition PGN has earned $6 PPS in 2014. That is the levels of earnings we could expect if oil goes back to $70-80 in 2017. That is not bad for a $0.69 stock.
just google global routing and switching market. I am sure you can make it
Just compare to peers : for instance PACD has half revenue , half earnings and 1.5 times the debt that PGN has, whilst its market cap is 6 times bigger than PGN. Looking at Diamond offshore :1.5 times revenue and 1.5 times earnings, same debt, whilst its market cap is 50 times bigger than PGN. Looking at RDC, similar revenues and earning, slightly higher debt than PGN, whilst its market cap is 35 times bigger than PGN.
Even considering current oil prices PGN should trade at least at $10.
Sentiment: Strong Buy
That is why it is very important to get the first settlement at fair value. That would give more confidence that time is working in favour of SPEX and not against their efforts to monetize. Also it would set a precedent on which the other lawsuits could be settled. I also believe it would be good if the lawyers get a % of the sums they are able to recover as it would give them the right incentive to maximize profits for the shareholders and get in the meantime just their live expenses refunded
Please elaborate about why figures are exaggerated. I have provided actual numbers, market share, applied royalties, discounted by 1/5. Moreover not sure why you believ SPEX has very little time left. Lawsuits will go on until the end or until they are settled. The worst mistake Hayes can do , if we are winning on all the fronts, is to get peanuts from these giant corporation who got enriched using technology which they could not use