Josh Young
Hedge fund manager, energy, value, special situations

Green Hunter Continues To Be Challenged

Recent disclosures by Green Hunter (NYSEMKT:GRH) indicate the company may be challenged beyond the reasons discussed in the last article I wrote about the company (link).

1) Green Hunter cut its 2013 revenue guidance in its presentation at an energy conference in August. Slide 18 of the pitchbook has a 2013 revenue estimate of $31.6 million and the prior guidance was $35.1 million (slide 25).

2) Green Hunter recently issued $3.2 million of perpetual preferred at $17.50 (versus a par value of $25). Assuming it continued in perpetuity, and excluding the cost of issuance (likely ~5%-7%) and any value for the warrants issued to the purchasers, this implies a ~15% cost of capital. In...

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