Thanks for that non-carson. At current price for oil, Magellan is losing money on every barrel not even counting administrative costs above and beyond all costs to get the oil to sales point. All investors know that so your post is just meaningless.
Well, it sure was not a paper cut. More like a samurai slash. This one down 20%, Precision Drilling down almost 15% (and it is a solidly profitable company). Anyway, this whole oil downturn is hurting a lot of companies especially, as carson points out, the small drillers.
If OPEC nations, as well as non-OPEC nations, decide to fight for market share by escalating price cuts it will become increasingly more difficult for small producers like Magellan (1.19 pre market) to survive much less make a profit. The Saudis have already said we have a world over supply of oil and it is not going to improve for a couple of years. At some point even the bigger companies will make the decision to stop projects that are extremely expensive (deep water drilling and frontier exploration) until the market stabilizes at a higher level. Will Magellan be able to survive that period of time?
At the price you quoted I could not buy a movie ticket and pop corn. Maybe PDS will eventually get over the blahs of these lower prices for oil and we will have a recovery. But it may take a quite a while or until the Saudis and U.S. get over this #$%$ contest as to who can produce the most at the lowest prices.
Wow, that means you could buy a whole drilling ship full of shares for just a few dollars. Too bad they would still be worthless.
What market? No one wants these shares as is obvious from no sales for the past three days.
Latest report said company had not yet seen improvement in flows at producer wells but wells have not been opened for production for very long. Should Magellan report when they know for sure? I would think this is a material event one way or another.
That is about the size of it pennyvulture. mcrf52 has been watching this closely for years and I think he has pegged the PE about right. Were it not for the Antares mishap we might have gotten a 17-18 PE at the best and maybe 30 dollars a share. I am not sure I will hold my shares much longer as it may well take some time for the synergies of the merger to become more evident and to be reflected in share price.
Death by a thousand paper cuts is still death. This dribbling down in share price for the past couple of months is agonizing. Luckily I have one small stock (CYAN) which has returned to profitability and shareholders have been rewarded with a 55% gain in the past two weeks. Don't have enough of those shares to make up for Magellan however and I really have to ask if it is necessary to pay the top three guys over one million each per year AND reward them with large numbers of cheap options? How about keeping the options, cutting the pay in half and not raising pay unless performance and success merits it? I know this is a rant that will have no effect on those running the show but I suspect I am not the only actual shareholder who is nearing the end of the road regarding Magellan.
Could not agree more dv. Writing was on the wall when they could not find commercial liquids in sufficient quantity in Canada and when their erstwhile partner in the Mediterranean could not come up with the needed financing. I suppose I have to take some of the blame for taking a chance on these small outfits with big dreams but even then I expect some competency from the management.
I am puzzled, whether it be good or bad, as to why a company would ask for a halt with news pending and then not reveal the news during the day they asked for a halt.
My guess is that you would be right as much as I would like a positive announcement. There is just too much baggage attached to this one to expect anything other than what you posit.