Strange that this is a metals and mining ETF, but doesn't have a position in the largest mining company in the world, BHP Billiton.
I recall that Barrons article from July 2014. They looked for it to reach over $60 a share! A direct quote:
"Rayonier's (Advanced Materials) shares have popped 15% since they were issued, but still look attractive at a recent $41.50. In the next few years, there could be plenty of upside. Steven Chercover, an analyst at D.A. Davidson, thinks the shares could gain 30% in the next 12 to 18 months."
Search "Rayonier Advanced Materials: A Spinoff That Will Pay Off" in google and you can read the article in its entirety.
A reverse split is not a major negative. In fact, financially it's a non-event. It just means the stock has dropped a lot and the BOD wants it higher. We already know the stock has dropped a lot.
Tell us something we don't already know.
But I did buy it based on the apparently cheap valuation and it's working out so far since I bought blocks at $1.90 and $1.45. It's curious though that they haven't made money in the past 5 years.
I checked their history and the annual EPS is always negative. Looks cheap on book value and cash on hand basis, but the lack of profits bothers me.
I was fortunate to buy two chunks of shares under $2. I'm considering departing with my profits, but this talk of a takeover gives me pause. To sell or not to sell, that is the question.
They don't have that much debt so I don't know if bankruptcy is in the cards. I'm only here because I have been loading up on XME and it was down over 4% today and I guess this was the big reason for the drop in that ETF. A lot of XME holdings have been decimated (the coal especially) and this is the latest. For god's sake XME is below the 2009 low when everybody was talking about a great recession or depression. What the hell is going on?
Down over 4%. I saw Century Aluminum (a top ten holding) was down over 30%, however, all the other top ten stocks were only down slightly except for a 5% drop in Alcoa. It looks like aluminum cratered this today by itself unless it went ex-dividend.
Jetsfan, yours is a good question. MRO appears to have a lower than average debt/equity ratio and decent reserves. I thought about buying more, but didn't, which pleases me. I've bought some smaller dogs though (DNR, CRK, ECA, LNCO) that I believe are doing worse than MRO. This displeases me.
I hope you're right chkinsider. I wonder how long 750 trillion cubic feet of gas would last at the current rate of usage throughout the world because it sounds like a lot.
There is no indication, absolutely none, that ATW will go bankrupt anytime soon. This is a quality company with a reasonable debt/equity ratio. The stock is in the bargain bin right now and those who buy now and hold for a few years will likely make out like bandits.
It looks like the business is solid. The stock will probably base for awhile and start moving up towards end of the year.
Now is the time to add some ATW to the portfolio, but I don't have the stomach or risk tolerance to accumulate more margin debt.
That's funny, I but a bought a boatload of these shares for that very same mother at an average price of $28. I don't think she's going to be in a giving mood.
Iron ore: Falls Below $50, Miners Take A Beating
Excerpt: Brokers like JPMorgan had been warning that the bounce in iron ore prices would not be sustained and that prices would trough in the high $40 range in the second half of the year. One of their major concerns has been the flood of new supply set to hit the market, with the broker estimating that the big four producers, which includes Brazil’s Vale, will bring on 250 million tonnes a year of additional capacity between 2014 and 2020.