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  • Sandridge Bond Buybacks And The 85% Preferred Convertible Yield [View article]
    I don't know why anyone would buy the common shares. The bonds are telling you that this company isn't going to make it. The only way they can even buy some time is to dilute the hell out of the common. I agree about the prefs though - there's no reason why they wouldn't make payments on these when they can pay you with stock. I don't know if they'll survive the 18 months they need for you to not lose on the prefs, but I'd rather take my chances with that than hope for a miracle with the common shares.
    Aug 26, 2015. 12:43 PM | 1 Like Like |Link to Comment
  • Sandridge Energy - Balance Sheet Repair 101 [View article]
    With the bonds trading below 25 and the preferred below 12 (on 100 face), I think you're delusional if you think the common is worth anything. The company might survive, but to a common shareholder it's going to look the same as if it didn't.
    Aug 20, 2015. 09:35 PM | Likes Like |Link to Comment
  • Catastrophic News For Dominion Warrior Trust - Start The Death Watch [View article]
    This one was so obvious, but I missed it too. It looks like it could drag on a while though, maybe a year to try to find someone to take this off their hands. But I'm with you - who would buy it? Shareholders have a pretty good chance of getting wiped out completely. I think in 3 months they're going to announce the termination of the trust and this probably goes down below .50.
    Jul 30, 2015. 11:36 AM | Likes Like |Link to Comment
  • Caesars Entertainment: An Interesting Risk/Reward Payoff [View article]
    Not sure how you can say the stock is like an option with no expiration date, and then follow that by saying that "the risk of total loss is clearly evident" and that shareholders may get wiped out. Sounds more like it does have an expiration date, you just don't know when it is.
    Jul 8, 2015. 04:14 PM | 2 Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    Sorry Michael, I hadn't seen that Layup had already clarified how the taxes are calculated.
    May 8, 2015. 08:28 PM | Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    Taxes aren't a function of profits here, they're based on the gross price. How they calculate them are different depending on the state and can be a pain to calculate.
    As for the trustee fighting for lower costs, that's never going to happen, that's not what they do. The trustee doesn't do anything except publish 8-K, 10-K, 10Q-type of information and field phone calls from investors. And they don't put anything in those filings other than what Whiting tells them to put in there.
    May 8, 2015. 07:24 PM | Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    WHZ is not a "worthwhile investment", it's a terrible investment. For an explanation of why, read the article again.
    May 8, 2015. 07:07 PM | Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    I keep rereading your comment thinking it'll eventually make sense, but I can't get there.
    May 8, 2015. 06:57 PM | Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    This just means that all the shares are held in brokerage accounts, and not sitting in certificate form in your grandfather's safe.
    May 8, 2015. 06:40 PM | Likes Like |Link to Comment
  • Whiting USA Trust II Grossly Overvalued - Distribution To Be Slashed, Wells Are Unprofitable [View article]
    Those options indicator reports are generally worthless and this is no exception. There wasn't high call volume because people think oil is going up. It was high call volume because everyone that knew that this next distribution was a zero was in there selling calls. Actually, now that I'm rereading that excerpt it's even more ridiculous than I first thought. So stock is going to go up because call volume to put volume was 1.1 - 1? Really? An extra 70 calls trading in a day is the bullish thesis? I also like the part about it being oversold because it went down on greater than usual volume - like there can't actually be a fundamental reason for it to go down; like maybe an upcoming cut in the distribution from .32 to .01...
    May 8, 2015. 06:33 PM | 2 Likes Like |Link to Comment
  • 3 Good Reasons To Sell BP Prudhoe Bay Royalty Trust [View article]
    If you recall your shares with the intent of creating a squeeze, that's manipulation and it's illegal. A lot of shares get recalled around the dividends though, because if your shares are lent out you don't get the actual dividend, you get a manufactured dividend. That manufactured div gets taxed at short term rates, so they either recall the shares so they don't have to deal with that, or they jack the rate way up to make the money they lose by paying tax on the div at short term instead of long term rates. It takes a few days/weeks to get the shares back into the borrow pool and to get back to less egregious rates.
    Apr 26, 2015. 03:09 PM | Likes Like |Link to Comment
  • 3 Good Reasons To Sell BP Prudhoe Bay Royalty Trust [View article]
    That's not necessarily true, it depends on what agreement you have with your broker. Check the fine print on the agreement when you opened the account. Several brokers have fully paid lending programs, where they give you some percentage of what they make on lending your fully paid shares. There's no real transparency or control on your part in this process, though (no guarantee that your shares get lent out even though they're hard to borrow, etc). As far as I can tell it's just as criminal as everything else that happens in the stock loan market.
    Apr 21, 2015. 11:20 PM | Likes Like |Link to Comment
  • 3 Good Reasons To Sell BP Prudhoe Bay Royalty Trust [View article]
    WHX is ridiculous. They keep coming out and saying that you're going to get nothing and the stock is still trading for a dime. People love taking a flier on worthless stocks - RSHCQ is still .20 and they actually made the effort to put out a press release telling everybody that it's a zero.
    Apr 16, 2015. 10:32 AM | Likes Like |Link to Comment
  • 3 Good Reasons To Sell BP Prudhoe Bay Royalty Trust [View article]
    No need to yell. I understood what you said, I just disagree with you. If oil goes up, USO is going to go up too, and vice versa. It just doesn't go up exactly the same percentage every day because they're always rolling the front month into the next month (and because they don't close at the same time). You'd have to roll your contracts too if you were long futures and wanted to stay long. As for the "ultra-short term" part, over the last year, crude is down 46%, USO is down 47.6%. The year before, crude was up 17%, USO was up 19%. I think that's probably close enough correlation for most people. And anyway, malevy didn't ask me for something that tracked oil perfectly, he asked for a stock or etf that you could buy that would get you long oil.
    Apr 15, 2015. 05:34 PM | 1 Like Like |Link to Comment
  • 3 Good Reasons To Sell BP Prudhoe Bay Royalty Trust [View article]
    I knew someone would jump on me for that. It's not a disservice and it's not a terrible way to bet on oil. It's not like it moves independently of the price of oil (as I'm writing this, front month crude is up about 4.8% today, USO is up 4.4%). Buying USO is just like buying oil futures and rolling them. Is that a good way to trade oil? That's up to you. I'm just saying if you can't buy futures and you're dying to get long oil, buying USO would get you long oil.
    Apr 15, 2015. 01:17 PM | Likes Like |Link to Comment
COMMENTS STATS
95 Comments
83 Likes