If you bought in 2012 or 2013, you got a great 6-8% dividend and lost 20-30% of your capital. If you reinvested those dividends, you would have 20-30% of them too. The last dividend was paid in late June at a price about 5% higher than it currently trades. How nice was that? But yes, this could be a bottling process.
Lap dances. Management is going to make it rain after approval, and wants talent ready.
Good luck. I only have 600 shares, but I am with you in spirit and will be sipping some fine spirits when approval hits.
No near term buyout potential because Berkshire isn't selling and will not buy until they work through the NOLs. That means at least another 3-5 years before USG is on the auction block. But by then, it will probably be between 50 and 100, and possibly paying a dividend.
Who cares if it brings down the cost basis? Hold onto this company for decades. Take the payout in any form. They are making money now, which is the worst of times, and the death of petroleum is far from near.
This week, Barron's has an article that indicates USG has little downside, a fair valuation of about $33 and possible revaluation to $38 in 2015 upon continued performance. That may help get it back into the $30s.
I have asked USG's IR about it and they staggered the calling of the debt so conversions would not affect the NOLs. After Fairfax sold shares, USG called the rest. I believe Fairfax sold the rest of its shares, so it may be possible for Berkshire to acquire some more USG shares, equal to the amount Fairfax would have sold in Q2.
They were waiting for private equity to stop issuing shares. They were selling millions every few months, but they are down to below 5% now, which means no more secondaries.
SIGA was never in the 20s. Also, it is a one trick pony that went ballistic on smallpox concerns. To say it is casablanca's fault that SIGA failed would probably require casa to foil a terrorist plot. Silly.
The two are not mutually exclusive. You see, it can go to 14 and then 20, or go to 20 and then 14.
in your infinite wisdom, please tell me what is going on in angola, norway, nigeria, israel, mexico and brazil, because you did not address that at all.
I suppose angola, norway, nigeria, israel, mexico and brazil will all decide to abandon their offshore assets and instead order petroleum from the Bakken.
Why not just hold the stock and collect the dividend? That strategy has far lower transaction costs and is tax advantaged too.
The 20 million shares sold short as of 8/15, and the roughly 2 weeks it would take for them to cover, indicate that this is not yet the case. I think a good amount of this recent move is based upon the intermune acquisition and the expectation that KERX is next on deck for absorption into a larger player.