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Triangle Petroleum Corporation Message Board

turee_hugger 1 post  |  Last Activity: Nov 20, 2015 11:44 AM Member since: Mar 4, 2003
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    by theseriousinvestor Nov 18, 2015 4:07 PM
    turee_hugger turee_hugger Nov 20, 2015 11:44 AM Flag

    Indeed, weird uncorrelated hit again. And I liked your suggested Junk Bond article. But investors don't seem to understand that these preferred shares require only a fairly low level of payments for GST, and they are senior to common equity with known value in a buy-out. The amount of annual cash payments is small relative to cash flow and capital spending. So GST would not suspend a dividend, they would likely rather lower capex. Suspending a dividend would likely keep them from being able to access capital markets until that dividend in arrears was made up. And if that were the case, no institutions would back an equity deal, if it were needed, because a portion of that deal would have to go for paying back dividends. That's a deal killer for most fund managers. GST recently had its bank debt reaffirmed, so there is no imminent threat there, and they are well hedged this year and next. So, I think this is money-good paper. Helluva great yield while waiting for better things to come.

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