No, that's not a question, we know what's going on! Tonight the Collective would like to share its incredibly brilliant observations with the less-developed lifeforms in the Alpha Quadrant.
BK is near. The recent "gains" of late are most likely due to the last of the short positions being covered, this is strictly a technical phenomenon and has nothing to do with the company -- there will be no last-minute deals, no miracles. Take note of today's volume -- only twice normal, dollar-wise, that's not much for what was a sub-50-cent stock just a couple of days ago; had there been any real positive news on the horizon, SGY would be trading @ +20M shares a day, minimum.
The company's total debt obligations now exceeds its enterprise value. The money it received after tapping out its credit line is needed to sustain daily operations (i.e., meeting payroll & keeping the lights on), it cannot be used for any other purpose (such as buying back bonds). The company stated this most explicitly in an 8-K filing at the time they drew the funds.
On a more humorous note: we see NASCAR is back spinning his wheels, making the usual smoke and noise while going nowhere.
Here's something all you reverse-split cheerleaders failed to notice (or comprehend) from the latest filing:
"However, a reverse stock split would not cure the average global market capitalization non-compliance."
We are Borg, we are here to help.
"They increased share incentive program for employees, increased number of shares allowed from 150M to 300M, and approved RS up to 20:1. Sounds like they are going to RS and issue more shares. Good news as this is priced for BK."
Financially, this changes NOTHING!. New shares = price dilution. And who's gonna buy those new shares? Any artificial bump in price will be short-lived without lots of buyers, market-makers will take SGY back down under $1 in a heart-beat. Other than day-traders, what would compel anyone except NASCAR Guy and Jkeleshia to buy this sack of horse apples? If there was a valid turnaround story here, people would've already bid this thing up to $3 on record volume. Look at today's volume -- NOTHING!
Smoke & mirrors. financial sleight-of-hand, putting lipstick on a pig. All just a bunch accounting tricks to stave off the inevitable. We are Borg, we were right six months ago, we were right three months ago, we were right a month ago and we're right today.
jkeleshia -- "The RS is half the transaction. If a 10-1 is executed the float will be reduced to 5.7 million shares. They can issue more shares let's say 60 million at 3.6 per share that's $200 million to pay off debt."
Hey, that's absolutely brilliant!!!! Except for one minor problem: dilution. You 60M shares will NOT be worth $3.60, they'll be worth 1/10 that amount @ $0.36, which puts you right back where you started. You're trying to create money out of nothing, only the federal government is allowed to do that!
You True Believers just can't let go.
As we predicted -- over and over and over and over and over and over and over.
You insulted us, you laughed at us, you marginalized and dismissed us even though we presented the shocking truth night after night. You could have bailed @ $6 but didn't, then $5, $4 and finally @ $3. Even below $1 you kept buying more and more, hoping for the big payoff that never happened.
YOUR RESISTANCE TO THE INEVITABLE DEMISE OF THIS COMPANY WAS FUTILE.
WE SHALL POST THE FINAL MESSAGE ON THIS BOARD AS A FUTURE WARNING TO OTHERS WHO MAY PASS THIS WAY AND WONDER WHAT BECAME OF STONE ENERGY.
WE ARE BORG.
Hey, look at what just crawled out of the cesspool -- it's little Alex! Garsh-oh-roody we really missed you, you slippery little slime ball, LOL! I see you're still trying to pump this piece of road-kill. Oh, you're going to buy 50-60K shares, bwahhaha-a-a-a-a-a!! The Borg Collective is laughing so hard we just soiled ourselves, bwahahahah!!!!!
The quote of the century: "... looks like the market knows something that others not."
GEE, YOU THINK?????!!!!
How about THIS little gem: "Almost 50% loss within last 3 days on no news. "
Apparently you don't read the 8-K filings, LOL!!!!!
CORRECTION: due to difficulties in translating our complex concepts into your vile and primitive language, we have detection a transcription error in the last sentence of paragraph three. It should read:
Why ISN'T this trading at least 50M shares a day at such bargain price?
Down 9 out of 10 last trading session, down 6 days in a row. Delisting coming unless they do a futile reverse split. The price of oil is irrelevant now; it could jump to $100 come Monday morning and this stock will barely budge a nickel.
Tic-toc, tic-toc, the sound of inevitability.
For those hoping for a debt / equity swap? Bwah-ha-ha-haaaa!!! If SGY had even a gnat's-hair of a chance of surviving through ANY possible means, this would be at least a $3 stock right now. Look at the low trading volumes of late! This is a 50-cent stock, even the penny-stock pumpers won't touch it! Where are all those savvy insiders and "smart money" people? Why is this trading at least 50M shares a day at such bargain price?
The board cheerleaders have picked up their pom-poms and gone home, there's no one left to cheer you on. It's game over, the lights have been turned off; your team is all alone on the field, huddling in the dark, shivering in the cold drizzling rain like a box of abandoned kittens.
Accept your fate bag-holders and gamblers, you cannot resist us, you are weak and pathetic. Prepare to have your shares assimilated. Submit to the Cube!
Just discovered Technopedia. They're pretty good at explaining all kinds of internet and hi-tech communications stuff.
om4carley ... Never mind.. . Just answered my own question, found a site that explains all the new telecom jargon. Tnx for input, I get it now.
Thanks. When you say "internet point", is that the point of origin i.e., the data supplier? Example: let's say a big content provider like Netflix (the supplier) needs to stream ten thousand of movies and TV shows simultaneously to a million clients tonight, they would use a backhauler service to accomplish this? By "actual IP addresses", are you referring to specific Netflix subscribers who are streaming the movies at home? Gonna research this a little later.
Apologies in advance to all you tech wizards, but could someone explain "backhaul business" to a feeble-minded old man. How does that mesh with Maxlinear's overall business and product mix? Thanks.
... and let's not forget THIS little jewel:
“We have an interest payment obligation under our 2022 Notes totaling approximately $29 million, due on May 16, 2016. The indenture governing the 2022 Notes provides a 30-day grace period, extending the date for making the cash interest payment to June 14, 2016. Although we have sufficient liquidity to make the interest payment by the due date, we may utilize the 30-day grace period provided for by the indenture to allow additional time to assess our restructuring alternatives.”
What an odd statement. If they allegedly have "sufficient liquidity" then why delay the payment? Why is that even an issue requiring lengthy discussions?
Why do they need "additional time" to assess their "restructuring alternatives"? They've had plenty of time to come up with a survival plan.
What does restructuring have to do with making bond interest payments? The obligation ain't going away, it will still be there regardless of what type of restructuring is performed.
Unless the aforementioned restructuring happens to be BANKRUPTCY! Just a little Borg speculation.
Late-breaking news from the Borg Collective, these are NOT our words, they're the words of Stone Energy management:
“We HAVE NOT TAKEN ANY ACTION or made an election of actions to be taken to cure the borrowing base deficiency.” [caps added]
“… we project that WE WILL BE OUT OF COMPLIANCE AT THE END OF THE SECOND QUARTER OF 2016. We are in discussion with our banks regarding our borrowing base deficiency and the potential compliance issue.” [caps added]
It doesn't get any more explicit than that, folks. It's crunch-time, the walls are closing in, the sharks smell blood in the water, the hyenas are circling the gazelle with a broken leg. Nature is about to take its course.
OLD NEWS!! Failed to acknowledge text is cut & paste from Mideast Times article covering hedge fund activity. Data reflects activity from the FOURTH quarter. This guy doesn't seem to be well liked on other boards -- even worse than the Borg. Another give away -- the 5 thumbs-up. No one on this board has ever gotten that many on a single post since we've been posting here. How odd he received all those thumbs-ups and yet no board regulars have responded in nearly 14 hours.
It recently occurred to us the board is missing a valued crew member, Alex_iff apparently has fallen overboard! We also miss our furry little friend msj7421 but fear he (she? GLBT?) may have been converted into shark manure by now.
"Oil prices were boosted after the U.S. Energy Information Administration on Wednesday reported a 15,000 barrel-per-day decline in domestic crude production to 8.938 million barrels a day. It was the seventh consecutive week of decline. HOWEVER, the report also showed that U.S. crude inventories INCREASED by 2 million barrels last week, EXCEEDING EXPECTATIONS AND MARKING A THIRD WEEKLY RISE. "
[CAPS added to aid those having difficulty comprehending this data].
The Borg Collective warned what was going to happen, and now it has -- from article posted today on Oilprice site:
"OPEC Ramps Up Production And Saudi Exports Near Record High" ( latest from Oilprice site)
"And now, according to the latest Reuters production survey, in the aftermath of the failed Doha oil freeze agreement, OPEC will be the next to boost production in the coming month, expanding supplies from an already oversupplied 32.46MMb/d to 32.64MMb/d."
We also warned what will happen to inventories should prices start to go up again. As stated in today's article:
" ... as oil continues to rise, U.S. shale companies are starting to resume mothballed production."
Borg drone failure, text error, correction required!
Para. 6., Line 3, should read: There's been no real economic growth in this country since the Crash of '08.
Faulty drone has been disassembled, reprogrammed and re-assimilated into other units.
Look who's back, my good buddy jkeleshia! Hey, even the the Angry Great White Hope showed up yesterday with a futile effort to bash the Mighty Borg. Nice to see the board getting back to normal again, I was getting a bit concerned there for a while.
"Riddle me this, oil draws and disruption in Nigeria. Also, 700,000 barrels gone from US production. You still think oil will not rebound. Wow you are ignorant as well."
Jk, dude, riddle me THIS: your dream-stock just took a giant 17% dump today, did you ever ponder why that happened? I told you last night what was going to happen; yesterday was a short-covering sucker rally and now the rally is over.
EIA reported YESTERDAY U.S. inventory build is at highest level ever.
Oil price is up due largely to the recent decline in the USD; price is totally IRRELEVANT as is production, rig count and all that other #$%$, INVENTORY is the problem. And should prices stay above $45 for any length of time, debt-soaked, cash-strapped producers will start pumping like there's no tomorrow because they desperately need the cash flow. Should that happen, inventory levels will go even higher thus forcing prices to correct again.
Oh, wait, the Demand Fairy will fly in, wave her magic wand, and inventories will drop like a rock. Is that what you're waiting for? Bwahahaha! Ain't gonna happen! Do you know that the U.S. GDP barely has a heart beat right now ? There has been real economic growth in this country since the Crash of '08. Then there's China. Did you see what just happened to Apple Computer, their earnings got whacked big-time due to bad sales numbers out of China. What does that tell you about the global economy and the long-term demand for oil?
See, when the Borg reports, we provide useful information. What do YOU provide?