One of the preferred's today got completely slammed, good volume at 17k, maybe someone desperate just trying to get out. I personally did not have any issues with the latest quarterly earnings in regards to the preferred as i have not invested in the common
I believe oil will stay in the $40's- $55 range for a long long time. Still TOO services many of the big oil players who are producing from low cost projects, and the sector has hard barriers to entry. They should be fine even in a prolonged low oil price setting imo...at least the preferreds.
I don't care what happens to the common in the short/mid term, I only care that they can survive during these times, I know in October credit lines are being
reviewed by the banks, I was/am under the impression that TOO had strong banking relationships. Correct me if I'm wrong. I only bought the preferreds so as long as they can stay liquid and survive I'm okay.
Thanks that is interesting. I highly doubt that TOO want to suspend the dividend for common shareholders, so I would imagine that wont be the case on the preferred side. Also their common stock is not priced for bankruptcy or anything like that, I feel that their solvency is pretty good.
What am I missing for why the preferreds are so cheap? TOO-PA is trading at $17.63, a 29% upside if called, and a dividend yield yearly of 10.28%. They are also cumulative. Isn't the company cash flow positive and can easily service their debt? I am confused why it's so discounted.