I've been involved in a few of these "take unders" before. The last key is usually a distribution cut, sometimes without a corresponding reduction of free cash flow, which sends the price down. You could imagine it with CLMT - a total cut would see, what, $5 per share? The take under could then proceed and they get it for $9 or so.
The SEC never helped - but a few times the shareholders put together alternate boards and took a run at the company.
EIA report shows inventory decrease of .2 mill blls last week. Gasoline up a million or so. Better than the last few reports.
Yet, the preferreds are in rally mode at 7.00 +. This could signal something until you look at the bonds which are trading for less (on a par level) and you realize something is wrong there. So, maybe the preferred market is just a little too bullish.
Meanwhile: EIA reports -- Build of 8.4 mill bbls, gasoline up 4 mill. Bearish.
Sorry I am a day late.
Because Saudi Arabia is a centrally controlled economy, and they can cut production as soon as the right people in the royal family decide to do so. USA is a fragmented, market economy which responds to price.
Hey Turbo, yeah it was early 2000s on the HRP board. You saving for the crash too? I had 70% cash going into 2016 (now 68%). I was looking to spend it this year but the Fed really has me bothered with their dot-plotting more hikes. That and elections means it is not safe IMHO. But then safe not much fun is it?
I am looking at SNH again - had it since we met on the HRP boards in and out ever third year or so. It seems fairly undervalued about now.
Good call. I also appreciate they apparently didn't leak the information early to "friends & family" based on yesterday and today's pre-announcement positive moves.
Now the question is: Does anyone feel lucky? Well, do you? (I mean ofcourse to step up and buy any).
Do people think when companies go BK they just stop operations? They do not.
The BK trustee takes over and manages the assets and has a duty to preserve value. I saw Dan Dicker (the Street) say he was surprised by that.
Nice, thumbs up for relevant lyrics from popular songs!!
EIA report out today (I guess due to MLK it was one day late): BUILD again, 4 mill bbls oil, 4 mill blls gasoline. WTI is now what? $26.30? OMG that is less than half of my prediction when I entered my positions. Thanks to Iran and the Mad King Saud. Well, I live to keep trading and we will see.
No news so my thoughts are "why is it going down"? As stupid as that sounds, that is the issue with alot of these companies the last few weeks.
Exactly, but terrorists were fully funded at $40.00 as well. But Mideast oil money is the source of funds, directly or indirectly. There are sects that have always exposed the hate, but they had the means. Now, they have some.
Agreed. BBG will be one of the last to fall. I calculated they survive at 40 WTI. All we need to do it get there before the hedges all roll off.
EIA Report: Inventory build .2 mill bbl - not great. Gasoline build of 8.4 mill bbls - big build, bearish.
WIT 30 - OMG!!
Not what I read. Amongst all kinds of other crazy statements it seems to be consensus that they will bring 500k more blls per day immediately. This is an important issue so if I am wrong I would be glad of correction.
Did a little research today, there is concern that CLMT peaked with the crack spread which will now narrow and leave it with less and less cash flow. I will wait.
What I see with CLMT is an unreasonable correlation with KMI and the MLPs that "crashed" because KMI cut the divy. I will be looking to buy.
I actually think that would be a good policy response. We could even take the 30% tariff and fund alternative energy for the future.
Funny though, that a doctrine violating "free trade" gets floated on these boards.