"Are you arguing that everyone must wait for a default before complaining?"
Certainly not, just that you haven't provided any evidence to support your claims.
"a transfer of property that is made to swindle, hinder, or delay a creditor,
or to put such property beyond the creditor's reach. (legal dictionary)"
Please provide evidence (verifiable facts, please).
"When an unprofitable company with debts pays a dividend, its directors
are transferring money to shareholders that the company didn't earn
leaving creditors with less security."
For asset heavy firms such as REITS, FFO is the important metric regarding dividends. Profits are certainly important in the long run, but many REITS have successfully paid out dividends despite temporary operating losses over a few years.
"Furthermore, such an act is criminal fraud if the intent is to falsely reassure investors about the
Have you reported this to the SEC?
"2/3 and a half don't add up to one....."
I guess basic math skills is not a pre-requisite to running LINE better than Mr. Ellis.
Nor basic spelling skills--I wonder what is a "keeosk"?
:) Just some gentle ribbing---pride precedes the fall.
"Sears has assets - JCPenney don't"
The most important asset is the customer...
"First it's a big IF that Sears is going bankrupt, second it's an even bigger IF that they would go bankrupt before JCP does."
You've surely noticed the share price run up since Oct. IPO----the market is focused on potential distribution growth rate, not necessarily initial yield.
ie, SHLX is a growth story.
Interesting report today in the WSJ.
Some can afford this expensive game of chicken more than others, even within the OPEC bloc.
"hey basically gave them a loan ...."
Please, this deal is NOT a loan. There is no loan principal nor maturity date nor interest rate for LINE to pay. There is no possibility of default, as would be the case with a loan.
It is a JV involving factional interests in the wells drilled, and which change once the Blackstone entity GSO Capital Partners earns a 15% IRR on its INVESTMENT.
It's almost certainly a good deal for GSO.
Up front, it's also a good deal for LINE as it allows development of what would otherwise likely be idle acreage and also provides additional DCF-LINE is unlikely to develop this acreage in the foreseeable future on its own. Over time, as the acreage is developed and characterized, LINE's book value will be boosted from additional proved reserves.
"Who got fined?"
You're missing the point---again. Sighhhhhhh.........
$35MM is a rounding error in GM's balance sheet.
The strategic question is--are/have the recalls hurt New GM's sales?
The evidence, going back to March sales co-incident with the initial recall announcements, appear to be a very loud and clear "NO"!
"while I think it's an absolutely great idea, I question if they have the time/money to put this infrastructure back into place - it's complicated"
Indeed, it's not so much the grand ideas but, rather, the execution that's the dividing line between success/failure.
Sometimes, pressure enhances execution---and, there's nothing like the prospect of a hanging at dawn to focus the mind and will.
They aren't beginners.
They're surely using leverage to maximize profits---e.g., 3MM barrels cost $150MM even at $50.
However, insurance? Ain't cheap to insure all that oil, and it's probably cash expense, maybe $5-6MM/year.
"They just took a $35M NHTSA fine in May (the maximum amount that NHTSA can fine GM for a single safety violation) and this idiot thinks they are safe."
How many of the recalled vehicles were produced by the New GM?
I'm only interested in the quality, reliability and safety of New GM vehicles, and I like the evidence so far.
BTW--my 2012 Volt lease comes due in June. I expect to lease another Volt----hopefully the improved range model will be available. It is a SUPERB vehicle--solid reliability and quality.
--I took my wife up to the sparsely populated Mendocino coast over the holidays to celebrate our 20th--1300+ miles of very pleasant and smooth driving, and without range anxiety.
--one of our stays was at a former Coast Guard House now a converted B&B in Point Arena (pop. 400). It had a charging station (single port)! Owner says it's used mostly by the occasional yuppie Tesla owners from the SF Bay area.
--I didn't see any Teslas in Mendocino, but saw 3-4 Volts during our week long visit.
PS: My Volt experience write up is looooooooong over-due. My apologies to you and Chebby, but I WILL get to it.
I agree that the storage-trading strategy will likely be lucrative for the best trad
Some of these folks are signing 1 year tanker charters--I find this commitment interesting given others' calls for multi-year depressed oil prices.
Both can't be right.
As for Iran---it and many OPEC/non-OPEC states needs $100+/barrel to balance its budget, I believe. How long can they survive $25 oil?
Very interesting article in today's WSJ.
Selectively of the mailing list is key--certainly, to start.
But, also very useful for (re)-branding and (re)-positioning if done correctly---you can present a narrative in a catalogue that's not possible in a brief commercial and/or simple mailer.
These traders obviously don't see much further fall in oil prices, nor that prices will stay depressed for multi-years.
Reports such as this one in today's WSJ point out that "The strategy is simple: buy and store oil at cheap prices now and sell futures contracts to lock in the higher oil prices expected later."
These traders' strategies entail high costs (e.g., oil purchase financing costs are $14MM++/year on 3MM barrels at 8% and $60/barrel; while tanker charter rates that are $50k+/day or $18MM+/year), maybe ~ $32MM+/year run rate of costs.
They're highly experienced, have done very careful DD, and are presumably expecting a decent recovery in oil prices in less than a year. Oil would have to spike $10+/barrel higher ($32MM cost/3MM barrel tanker) before they see a profit.
"The condition of the US economy is quite dicey at this time."
I'm not sure about this, we'll likely continue on growth path.
The 10 year yield--my guess is that it reflects likely QE by ECB, an indication of just how weak the Eurozone is (and Japan, China, etc) and fears of contagion---all together lessened pressure on our Fed to raise rates.
"This is nothing more than disguised debt..."
This is patently wrong.
E.g. hypothetically, suppose drillng turns out 100% dry wells--is LINE obligated to pay for Blackstone's $500m front money?