When you get them they will be worth something around $9/sh in US dollars. So at .4 shares per BHP share they will replace about $3.60 per share of the value of BHP. I look at it like BHP is worth around $49.50 vs the current $45.90. Remember....BHP will not be reducing their dividend. It will remain the same. So it's like these South32 shares are like an additional $3.60 dividend.
I'm holding both. I won't sell the South32 shares. I'm suspicious in a year South32 is going to be worth more and BHP will be right back in the $50's where it should be.
This is going to be just fine.
Oil has to spike through the roof and return gasoline to $4+/gallon. FSYS, unlike WPRT, produces conversion systems for gasoline to nat gas engines. It also provides the refilling stations for nat gas engines, which IMHO, is the real long term "potential" value in this company.
The company's products are simply not in demand. Simple. Nat gas engines are simply not wanted. Gasoline is too cheap even as nat gas is even cheaper.
I will not buy more of this company. I own more than I want to but as I have several winners elsewhere in my portfolio I can afford to sit on this cr**py stock and wait for a possible revival. I am not holding my breath nor expecting it any time soon.
They are not going out of business. They still have the activist investors on board. It can get cheaper and in a bear market it could go to sub-$5/share. It might.
But.....someone actually might swoop in a buy them out, though I'm not sure I'll get my $12-13 cost basis back. If any sort of nat gas sentiment change occurs that spikes this sector then FSYS might double. I will simply hold FSYS.....continue to hold. I will not average down. That never seems to work.
Since the current 52 week high is $17, I'm perfectly wiling to let it surpass that......which I have absolutely no expectation of seeing happen.
Don't get me wrong...I own the stock. It's just every time I get my hopes up it dashes them. So this time, I won't get my hopes up and maybe I'll be wrong again.
Commodities and their stocks are rising in anticipation that the U.S. dollar has peaked for the time being.
Falling dollar means higher commodity prices.
They don't need to lower the dividend. Yes, they should be looking to transition into more digital media, but, as I said, they have way more than adequate free cash flow to pay the nice dividend. They could actually make a one time, "special" dividend to shareholders...but I doubt they will and I don't necessarily think they should. My guess is they will make another stab at an acquisition. I'm fine with QUAD at these prices. Collect and DRIP the dividend.
Better than a bond. Steady income with a much better shot at a capital gain.
We will see pop, drop and rebound. I think low 40's is now a reliable floor. Don't sell tomorrow. The smart thing will be to buy if it dips at all. I have my 2.5% position. I'm green. I'll just watch.
XOM will not buy BP. Nobody will buy BP until the gov't gets off their back and that isn't going to happen for years...if ever. As long as BP is breathing the gov't will be on 'em.....gov't is like a parasite...it will latch on and drip, drip, drip cash from BP. Gov't doesn't want to kill BP...just feed off of 'em. Like the tobacco industry.
The sky is not falling. Watch. The Fed is going to blink on raising interest rates. They're going to blink.....and we will be off to the races again.
Not a bad trade. GLTU.
I like selling puts on these high flyers. You either bank the option premium or get a better price of a stock that's beaten down.
I don't see you having a big downside there....notwithstanding the world can blow up at any minute and the whole market could get creamed. That is your biggest risk...albeit small.
Steve Wynn owns 19% of the company. He pulls down something like $100 mil./yr. in dividends at the current rate. For some odd reason, why would he jeopardize the financial stability of the his own company for the dividend stream when he owns tens of millions of shares?
To me, he knows the borrowing for dividends (if in fact he's really doing that) is short lived. He knows. He knows. Keep the dividends up and wait for the Macau revenues to ramp back up. One way or the other Steve Wynn wins. I'm OK following his lead.
Hold the shares. Collect the dividend. Wait. Everything will be fine.
If the market/world economy goes kaflooie....well....then all stocks...all bets are off.
Nope. Not gonna see $70 this year. $55 is good bet though.
$50s this year. $60s next. BHP will be $100 when the dollar gives it up. Probably not until after U.S 2016 election. In 2017 to 2019 the poopy is going to hit the fan. Gold and commodities will soar. Oil too. When the money printing goes kaflooie...and it will....that's when BHP will go crazy.
In the mean time, hold it, reinvest the dividend. Sleep tight...don't let the bedbugs bite.
With AT&T buying DirectTV I'm thinking Dish could be attractive....throw in SATS. I'm just thinking bigger companies could fold SATS into their stable.