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Andrew Shapiro

 
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  • Although Small, New Source Energy Partners LP Worth A Look [View article]
    What raises my concerns regarding the Sponsor and GP's relationship with NSLP is that the clearest and most synergistic acquisition opportunity right next to New Source in the Hunton, that of under-levered and dewatering specialist Equal Energy (EQU) which is on pace to generate $40MM EBITDA BEFORE consolidating public company synergies, is not being pursued.

    Equal is up for sale and its current agreement with Petroflow Energy is subject to only a very low $2MM break-up fee and a "fiduciary out" in the event a higher than $5.43/share proposal emerges. Several large shareholders, including ourselves, have come forth saying they would favor a plan that would monetize part of EQU while allowing continuing ownership in the leveraged stub equity.

    This could similarly be achieved by a combination cash and MLP share interest proposal from NSLP.

    My only guess why this is not being pursued is fear by NSLP management that they would lose control of the conflicted transactions they have been engaging in.
    But I guess if they made their offer more cash and less MLP units, they could maintain control and still complete the highly synergistic acquisition.

    Their time is running out. EQU has scheduled its special meeting to vote on the Petroflow deal on July 8.
    May 31 03:08 PM | 1 Like Like |Link to Comment
  • Real Estate Progress & Strong Q3 Results For Reading International [View article]
    Reading Int'l Announces Closing of Its AUS$65.0MM Burwood Property Sale; Retained first right to place RDI multiplex on parcel should Australand Holdings (OTCPK:AUAOF) desire to include a cinema in this large development. http://bit.ly/1k4C22K
    May 29 01:23 PM | Likes Like |Link to Comment
  • Reading International: An Asset Play First, Earnings Play Second [View article]
    Reading Int'l Announces Closing of Its AUS$65.0MM Burwood Property Sale; Retained first right to place RDI multiplex on parcel should Australand Holdings (OTCPK:AUAOF) desire to include a cinema in this large development. http://bit.ly/1k4C22K

    In the past, I have provided substantial information on several of Reading's key properties with links even more detail to assist in one's calculation of fair value of these parcels in my many articles written on RDI found here http://bit.ly/xhUDRE
    May 29 01:22 PM | Likes Like |Link to Comment
  • Real Estate Progress & Strong Q3 Results For Reading International [View article]
    Reading Int'l annual meeting slideshow Illustrates enormous asset value still not presently reflected in $RDI price http://ow.ly/wVZjG
    May 16 02:01 PM | Likes Like |Link to Comment
  • Quality Systems Has A 20% Margin Of Safety [View article]
    After we forced cleaning things up here with a successfuly proxy fight in late '90's, the ownership structure and governance has "devolved" into a morass emblematic of an endless middle-eastern war. With the loss of Pat Cline, management here remains a ship lost at sea.
    May 14 04:36 PM | Likes Like |Link to Comment
  • Real Estate Progress & Strong Q3 Results For Reading International [View article]
    Well regardless of whether RDI doesn't make the end of May measurement cut or not, then there is over 340K shares short that will be on the buy side covering. If RDI stays in there is no supply. But if RDI gets dropped then supply will be in excess to this buying.
    May 7 11:37 PM | Likes Like |Link to Comment
  • Real Estate Progress & Strong Q3 Results For Reading International [View article]
    The fact they are pair trade hedges means I am specifically negative relative to RDI as a play on public exhibitors. There is some foreign currency and international exhibition component in CNK that is unique to both CNK and RDI. CKEC has a real good CEO but, without a dividend for stabilizing floor price, is a bad risk/reward choice at present prices.
    May 7 11:35 PM | Likes Like |Link to Comment
  • Real Estate Progress & Strong Q3 Results For Reading International [View article]
    yea - the price is screamingly cheap. sell off from a doubling of short position speculating that RDI market cap won't make RU 2000 cutoff this month-end and get dropped from annual index reconstitution. Index cutoff last year was $128MM, while RDI grew from last year the index cutoff this year is ESTIMATED at around $170MM.

    Stock price is on the bubble right now but outperformance vs. rest of Ru2000 will keep RDI in for another year.
    May 7 03:24 PM | Likes Like |Link to Comment
  • Equal Energy: Merger Drama Could Lead To Upside [View article]
    The financing detail may need to be limited to formal proxy filing and should at least show up in the preliminary proxy to be filed.

    The main hurdle to close is to convince me (5%), Montclair (5%) and other shareholders that this is the best alternative to pursue. Deal requires 2/3rd shareholder to approve. Given the price and the obvious higher value a leveraged recap plan would provide, Petroflow ought to consider sweetening the deal to obtain the necessary votes.

    Spread narrowed greatly today but remains wide because the arbs just got wind of the new deal and financing details not yet available (arbs have been calling trying to figure out financing source) and they were burned once before. Look for the spread to greatly narrow with the details available. Note also low break-up fee.
    May 2 10:05 PM | Likes Like |Link to Comment
  • Equal Energy gets revised marketing contract, extension of Petroflow deadline [View news story]
    @tweezy - they are not 'late'. December divi was paid. The March divi was negotiated away when the original deal was cut. Deal allowed board to pay the dividends but each payment reduced the buyout (and cap gains without canadian withholding tax) price. Now price remains even with div payment. Frankly I wish, if the 2nd divi is actually contingent on closing the deal, that the buyout price be bumped by a nickel instead. Better for US taxpayers like me.
    May 2 10:00 PM | Likes Like |Link to Comment
  • Equal Energy gets revised marketing contract, extension of Petroflow deadline [View news story]
    @ed mC - time horizon for annual meeting is canadian law. the merger meeting will be the annual meeting or take place before.
    May 2 09:56 PM | Likes Like |Link to Comment
  • Equal Energy gets revised marketing contract, extension of Petroflow deadline [View news story]
    SA editors missed the important fact that an additional $0.10/share via two dividends has become part of original $5.43/share deal.
    May 2 08:57 AM | 1 Like Like |Link to Comment
  • Equal Energy: Merger Drama Could Lead To Upside [View article]
    @rwillia1 - Just for the record there already is a definitive agreement. That is what has caused all the radio silence, suspension of dividends, etc. That agreement will expire next week May 1. Not a day too soon. The EQU board ought to have their meetings scheduled and take multiple actions to improve and maximize shareholder value.
    Apr 25 09:04 PM | Likes Like |Link to Comment
  • Equal Energy: Merger Drama Could Lead To Upside [View article]
    {atrick - actions materialize or not, EQU has been and continues to generate increasing cash flow, production and reserves. What is done with those assets is the key questions. Value will out.
    Apr 20 06:28 PM | Likes Like |Link to Comment
  • Equal Energy: Merger Drama Could Lead To Upside [View article]
    Exactly -

    Also reinstating dividend and paying shareholders both Q1 suspended dividend and Q2 dividend until a buyback is initiated is appropriate.
    Apr 18 05:32 PM | 3 Likes Like |Link to Comment
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