Seems like they are sucking shareholder equity. Got to pay .18 or 75 mil in Nti dividend,plus 15 cash to Nti. And absorb the debt. Nobody wins here
To double mkt cap they will need a PPS of 10. With under 6 mil shares outstanding this should happen within the next 2wks. Given the number of board members for such a small company.I would expect this to be the outcome.
Opex Friday, high open interest on $20 calls. Not much open on puts. May not hit 20 this week. Bet it doesn't hit 16 either.
Also, the beta here is relatively low? This company must have some glimmer of pride. I remember reading about this company in the early 90's. They can't blame all the short comings on the commodity prices or, low low interest rates. 50 a barrels and 2.5 for Nat gas is appreciably better than 5 or 6 months ago. Did they get stung by the state of NY moratorium on hydraulic fracturing. As an amateur forensic scientist, I beg the question what went wrong here?
Wouldn't the market maker close many of these positions before tomorrows close. I wonder what price the avg. Large positions were shorted at? They had to imitate a large portion at the 3 and 5 area quite some time ago. I would expect today's volume to finish around 9.
Revenue,debt,shares outstanding about same. Disproportionately is the market cap. Stone mkt cap should be exactly 10x what it is. And the only way for that is to have a PPS of $6. after Fridays close assuming the reverse happens at about .60. Will stones mkt. Cap become proportionately increased by a factor of 10 ? Thankyou
At today's price. If one bought all outstanding shares. How much would it cost to own all the shares? Have any of you tried this? Seems like 60 million would cover it.
Here is my scenario.
After Monday trades on a 20 dma of 7. Pompano back on line, ensco working. Public offering of 30 mil shares @ 7. Raise 200 mil. Make the interest pymts. Return the 385. Mil. On the revolver.sell 250 mil in assets. Received the 25 mil tax credit. Consolidate the board to 5 members. Continue cost efficiency measures. Fire LAZARD. Hire, Jefferies or Goldman. Dismiss the CEO. Announce you are hiring me. Uncle Danny from Miami. And SGY is back to chopping wood an carrying water.
I agree, however the confluence of there principle commodities is fairly bullish. Stone energy has been around a long time. Once they are above the $5 threshold, there options increase. Not to mention a looming short squeeze of %40.
And those positions most likely were initiated at $20. So even a cover to $5 is a massive gain.