Congrats for not digging your heels in on the short side (like I did on the long side - I'm still slightly under breakeven right now). Best of luck.
I am suspicious that BBEP was the victim of naked shorting, and a failure to deliver perhaps millions of synthetically created shares, combined with the rise in oil prices has triggered a massive squeeze. The action we have endured (the dramatic downswing but ALSO the recent dramatic upswing) goes beyond fundamentals. We've really had no substantive news from the company that would trigger such a move in either direction. To me this is indicative of something very broken within the technical aspect of how this security trades.
This is looking pretty squeezy. The question is whether or not there are any fundamentals behind it, or if this move is entirely technical.
It acts like maybe they are about to get some financing and the banksters know about it. Fingers crossed.
Everybody on every upstream message board is clamoring about how good the hedges look for their favorite company. Well, the collective hedge portfolios of oil producers - the thing that should save them from low prices - in this case turns out to be the *cause* of low prices.
Every energy CEO I see on TV says that in spite of low oil prices, they will pump more oil this year than they did last year. Why is that? It's because their hedged production for 2015 is bigger than 2014's production, and no company is going to stop pumping oil that they've already sold in the futures market at 2x the current spot price. They need the cash! But that only serves to increase the market's oversupply, further driving down the spot price. It's a vicious circle.
Congrats. I thought you were really pushing your luck back at what, $7-8. Well the joke is on me. Whatever you do, don't stay too long and give back your gain. They call it a "short" for a reason.
Not at this time. The 8.3-cent monthly dividend should be safe through March or April. At that time the banks that hold their credit line will evaluate BBEP and could force them to suspend it until they pay down the loan.