Cooperman is no where to be seen! I think he is in hiding in a Witness Protection Program for bad stock pickers!!! What happens with $80 oil or $70 oil where will SD trade then it makes one wonder. Bennet and the Board should of trimmed CAPEX to cash flow when the fed started the ending of QE. Obviously the market doesn't believe anything SD says or is doing. Job well done Bennett, TPG and Ward cronies still on the board!
Their phony 200 million stock purchase was just that! Stock down 25% since they announced it. I bet they have not bought one share. Makes one wonder if they think its going lower?
2,443 Put contracts traded today across all strikes while only 57 calls traded across all strikes. SEC will be notified if this ends up being insider trading pending any news. Pretty easy to flag these trades for them. Of further note WMGI usually trades around 100-200 contracts at most on a given day across all options from my casual observation.
Its hard to believe where SD is now and Oil is still well above $90 a barrel! A few years ago when oil was below $90 SD was trading much higher. It makes no sense. I bet management has yet to buy one share in the 'share buyback program'! TPG has not only not 'unlocked value' but may of hurt the value of SD since the market still isn't buying into the board of directors of which they have control of 4 of 9. There can be no doubt that there is no company interested in buying SD as a whole as it would be happening with the share price this low! SD has oil hedged at near $100 a barrel the rest of this year so I don't buy the fact oil has fallen 10% as the whole reason for the drop. The only good news is today was the last day of the quarter and I am willing to bet the multi-year lows were hit today and will not be broken. There seemed to still be a rush of funds leaving SD. I would not be surprised if Fairfax financial was a major seller this past quarter!
Based on April 29th FDA agreed to review PMA that makes @28 days left from today for decision. Hopefully, they compromise and come to some sort of agreement and post approval study. Otherwise this thing drags out for another year on appeal! Lets see if this dispute resolution panel is just that and resolves the dispute once and for all!
I hear you eye4neye374. Can't say I blame you one bit. I am more betting on the price of gold trading back above $1,250 by end of October than management of IAG at this point.
Wedding season is coming in India next month I believe so that should help demand of physical gold. IAG needs some more cost cutting and IF they sell Niobec they should use all the proceeds to pay down or off their debt if possible. That will save @40 million a year in interest thereby offsetting almost dollar for dollar the free cash flow they would be losing on the Niobium and the comfort of having little or no debt.
Picked up a little more it just makes no sense this low IMO.
SD is a wealth destruction stock. Its worth more as a tax loss for many at this point. Once 'window dressing' is done by the end of this quarter in a week things should settle down. It appears not many want to show on their books they have SD or they haven't been unloading it since its one of the worst performers in the sector.
Letwin and the IAG BOD worries about what may happen 8-10 years from now that a lot of money will have to be spent at Niobic which leads one to ask does he not have confidence in the direction of the company and where it and gold will be trading 6 years from now before such expansion would need to commence?
Well, the all time low is $2.22 and closing low is $2.66 from what I checked. I never thought we would be trading below $4 much less $3 so I guess I can't blame them for hedging. Whatever it is some large investor (s) didn't like what Letwin was saying last week at the conference IMO
Lots of action today on the December $2.50 Puts. Another large bearish options bet on IAG. So far they have lost a lot of money even though they have been right on the direction of the stock.
I disagree as the huge declines have already taken place on most of their wells already. The drop off would not be as bad as you say as its only a 300-400 million cut in CAPEX it is not stopping their drill program. I don't see drastic production declines with over a thousand producing wells and spending 1 billion versus 1.4 billion but maybe I am wrong?
SD could rocket higher if they just said that going forward they will drill within their means based on cash flow and adjust CAPEX accordingly. The market does not like the company depleting its cash reserves to drill oil in a falling Oil and Gas price market. I agree that the debt is also a major drag.
The heavy volume and more than double decrease versus other peers leads me to believe a lot of the selling is Letgarbage looking to rid the most valuable asset for bargain basement prices! Once Niobium is gone this $#@#! stock will be even more dependent on the price of gold so if we think its volatile now wait until then!
I agree. Niobibec is worth at least 1 Billion IMO. If anything they should sell off the gold assets except Westwood and expand the Niobium! I have suggested to the company to Spin off Niobium but I think they would rather 'give it away' to their friends it seems! Management here is playing with OPM (other peoples money) and are not acting accountable. We need an activist fund or investor to shake things up here. That is the only way things will change IMO
If they net 500 million they are giving away their Niobec mine as far as I am concerned. The Niobium underground is is worth billions with an expansion. They are giving away expansion for free and selling current production for next 8-10 years at 5x-6x earnings from it! That is all if Niobium stays at current price and doesn't move upward!
Point well taken angietheapple. I agree in that regard. However, I think they can safely shut down all production at the Africian mines for at least 2 years so it would make sense. It will take a lot of miners to finally slow or halt production at unfeasable mines to make a difference. I think right now there are around 3,200+ tonnes per year of gold produced which is at or near record worldwide output. If production just went to levels in the 90's where it was in the 2,000 tonne per year range (if memory serves me correctly) things would work out very well. Either way, IAG has Niobium which the market seems to give no credit for!
That is good to know and hopefully other CEO's will finally pull the plug on over priced non economically viable projects. Niobium is the Key to IAG in the short to medium term IMO
Good post leebagain. I think for Gold to start going up significantly there needs to be cooperation from the large miners to cut production. I.E. companies like IAG have no business mining in Africa where the cost above production has been and is and will be in the near and medium term future! Until there is less gold being produced the price of gold will have pressure on it. These central banks are in overdrive shorting paper products!
dambatchew, that does make sense when you say that some of the preferreds may have been shorted as a hedge. It would only make sense if the margin interest rate were less than the preferred dividend of course.
patsbaz makes a good point in that perhaps after the conversion Prem Wasta will finally have shareholder interests aligned with his.