Lots of factual errors in your post
1. you don't have to file a registration statement to do a private placement (non tradeable securities) . Most privates are for UNREGISTERED securities so you don't need a resistrtation.
2. Private equity investors can't take advantage of the tax loss carryforwards. The IRS is very picky on the topic of carryforward losses. . Only an acquiring company can take advantage of NOL's and they have to essentially be in the same business (ie. oil and gas)
3. Stock price may not go anywhere in the next 60 days unless another oil co buys the whole shebang or they sell the 26k at big bucks and even then it's a buyers market. (lets see what oil does tmw. after Doha)
4. An equity offering, even in June may be at a discount to the mkt. for the common.
I bullish but also a realist and I don't share your views.
yahoo sucks in terms of news updates
go to nasdaq website
type in gst
on the left panel click sec filings
they filed at 4 pm Friday
the next few weeks should be interesting.
If you are correct regarding the suspension of dividends I can't really see any meaningful capital raise in the short term .........2 weeks as you mentioned.
..Since this is a mixed shelf, the management can do most anything. But the short term limitation is the number of authorized common shs. I doubt they'll issue new debt or another series of pfds. The A and B are still the most senior and having to pay junk bond interest rates or dividends would be a drain and Issuing common under the common share authorization is difficult as it won't raise much more than ~$200 mil.
Even issuing converts is a problem with the auth share limitation.
The proxy statement increasing the number of auth. shs won't have an affect until June 16-the annual meeting date.
Maybe this is a ploy to sell the company or keep the banks more flexible. . That makes some sense.
Bottom line I can't see a series of small capital raises. Either sell the 26k acres or sell the company
tough for the coal industry--nat gas is a coal killer (aside from Obama). I wrote the May 27 calls..
Q 1 will be out in a month--can't be good
lower fuel helped these guys deal with the fall off in coal tonnage. Now oil is headed higher--I think q 1 and q2 will suck.
Great company but no takeover--should trade below 25 till the 3rd Quarter
some of your points can be argued with (the flexibility of the banks on the revolver) but who cares to argue until we see the size of the new revolver
You totally negect the possible value of the STACK--i.e., joint ventures, outright sale of a portion of the acreage or total sale of the company. GST is not another Sandridge or Chesapeake.
I believe the bondholders and the pfd holders will be made whole. we'll see
Hearing MRO is looking at the Stack
pfd divs usually announced by the 4 or 5th
I know the weekend but no news yet
Just wondering if they are in talks with the bank for a waiver. Maybe the second well results are in
a few things
1. JT's downfall was his lack of forward progress- revs have been flat for years- while continuing to burn cash
2. what did him in was the margin call from Deutsche-- he borrowed against his shs and got screwed- hedge funds had NOTHING to do with it.
3. as for spin offs etc.--these guys have a liquidity issue now that has to be addressed-that's why its 20 cents