Stores like Sears not giving anything away here...
HAL CAN give BHI there 3.5 billion, let BHI drop to $29.00 and then do the real deal for $35.00 in June or July. Total Savings to HAL $30 Billion. Anybody who thinks this is going to happen given the latest OIL Decline is nuts.. Texans are not stupid.
Stuffing.. no Turkey
till mid decemeber.
and when they dump into no volume... It will be very painful.
Banks are going to take a major hit.
Russia has actually stabilized the Mideast. With IRAN watching its step.. They are stabilizing, at a cost of actually driving oil to $30.00 a barrel faster. Which is great.
Americans are retiring need less material things and driving less. China is feeling the impact of that and will continue to see it for years to come.
It means BP with its 8 billion in CASH. Will burn thru that in less than 24 months. They have a 3.5 Billion Dividend and 1.1 Billion per year for the next 18 years to pay federal and state govts, plus still have many more billions in individual settlements. What this means, it means they will need to go to the market for more bond financing at a time when energy firms will be defaulting on their bonds in record numbers in the weeks to come. So the bond offerings to get cash back will cost billions more. I think Haliburton set the fact that any bond over 10 years is going to cost near 5%. That will rise to 7% by January costing BP 3.5 billion a year more. This is going to 25 fast.
Can't run these firms on fumes...
Deal is dead... get ready for the plunge $15 in a day on the news.
the biggest disadvantage for BHI shareholders is the $19.00 cash, which is fully taxable as income, that income in certain accounts can alter their social security and have people come up with a huge TAX Bill has their stock value deflates. Big problem in the last weeks of the year..
BP lost another deal.. and is selling assets to make the day to day payroll. Now....
They may offer BHI a 7.5 billion buyout offer for all its assets, cause clearly HAL overpaid for BHI. They HAL offered $35 billion for a firm worth about $7.5 billion. GE and Siemens and others are waiting for the deal to fall thru and they will pick up any assets for sale for 1/4 of the price in the fire sale.
With less then $20 billion in cash on hand and a 8.3 Billion burn rate going to the FEDS and State and Dividends. and $35.00 OIL coming BP may have to sell out.
Why $25.00 is coming fast, Simple, 1.3 Billion in EPS lost to Feds & States Next 18 years, 7.0 Billion lost to Dividend. Cash on hand is less then $20 billion, less then 2 years. That's 8.4 Billion burn rate per year on. Negative EPS.
Fiscal Year Ends: Dec 31
Most Recent Quarter (mrq): Sep 30, 2015
Profit Margin (ttm): -3.11%
Operating Margin (ttm): -3.91%
Return on Assets (ttm): -2.04%
Return on Equity (ttm): -6.49%
Revenue (ttm): 243.57B
Revenue Per Share (ttm): 79.92
Qtrly Revenue Growth (yoy): -41.70%
Gross Profit (ttm): 44.29B
EBITDA (ttm)6: 8.26B
Net Income Avl to Common (ttm): -7.58B
Diluted EPS (ttm): -2.49
Qtrly Earnings Growth (yoy): -96.40%
Total Cash (mrq): 31.95B
Total Cash Per Share (mrq): 10.45
Total Debt (mrq): 57.40B
Total Debt/Equity (mrq): 55.95
Current Ratio (mrq): 1.40
Book Value Per Share (mrq): 33.15
Cash Flow Statement
Operating Cash Flow (ttm): 20.57B
Levered Free Cash Flow (ttm): -2.43B
What's good is a $2.40 dividend that cost ya $7.00 in market cap. I'll give anybody who will listen and read this $2.40 per share as long as they pay $7.00 premium for my shares. These are not investors they are bagholders. The generation of traders and investors have no clue what overpriced $35.00 OIL actually means for Big OIL and BP. It means $24 to $25 range is coming.