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Michael Pomerleano

 
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  • In a blow to investors seeking to oust the CommonWealth REIT (CWH) board, a Maryland judge rules the dispute must be resolved through arbitration. Corvex and Related sued after the Board rejected their $27/share buyout offer and instead went ahead with a secondary offering at $19. CommonWealth then filed for arbitration as allowed by its bylaws - a process stacked against shareholders, say the plaintiffs. CommonWealth reported earnings today, but the CC dialogue was strictly limited to operations. [View news story]
    If anyone had any doubts that the present management, Adam Portnoy and his father, are corrupt and incompetent, they need to read the transcript of CommonWealth's conference call reported today. The questions from the Citi analyst are indicative of all the problems that management is hiding: diluting existing shareholders, refusing to release data on properties, self dealing. The father and son are acting like a mafia don and have appropriated all the rights of the shareholders.
    May 8 09:30 PM | 1 Like Like |Link to Comment
  • Linn Energy And LinnCo Increase Value To Investors With Monthly Dividends [View article]
    reply to me from the author of the Barron's article. It confirms that the discounted cash flow is only available to pay the debt, nothing left for shareholders
    ------------------
    Dear Sir:

    My reading of the 10-K supports your observation that the discounted cash flows of Linn’s reserves, based on an SEC calculation, stood at $6.07 billion at the end of last year.

    I saw it on page 9 of the 10-K, not 102. You can draw your own
    conclusion from that. We outlined our views in the article.

    Andrew Bary
    May 7 11:46 AM | Likes Like |Link to Comment
  • Linn Energy And Berry Petroleum: 2 Companies For The Price Of 1 [View article]
    from the Barron's article author. The discounted cash flow is equal to the debt. Nothing left for shareholders.
    -----------------
    Dear Sir:

    My reading of the 10-K supports your observation that the discounted cash flows of Linn’s reserves, based on an SEC calculation, stood at $6.07 billion at the end of last year.

    I saw it on page 9 of the 10-K, not 102. You can draw your own conclusion from that. We outlined our views in the article.

    Andrew Bary

    May 7 09:54 AM | 1 Like Like |Link to Comment
  • Linn Energy Moves Towards Monthly Distributions [View article]
    Linn Energy (LINE) has been under scrutiny from short-sellers in recent months surrounding its accounting practices.I owned the shares but once i heard about the accounting practices I looked more into it and sold once I did the following analysis. The standardized measure of discounted future net cash flows is $ 6,072,981 on December 31, 2012 (page 102 of the 2012 10K ) and has declined from $ 6,614,860 million December 31,2011. The long-term debt debt of Line was $6,037,817 million December 31,2012 (page 31 of the 10K http://bit.ly/YqDMHB ) . That leaves a net a net worth $35.16 million for shareholders , while the Mkt cap is $8.40 billion. There are 235.07M units so the value per unit is about 14 cents rather than $35 a share. If my analysis is correct Barron's was more than correct. If I am wrong, I would like someone to explain how I am wrong. Thank you .
    May 6 06:42 PM | Likes Like |Link to Comment
  • Linn Energy And LinnCo Increase Value To Investors With Monthly Dividends [View article]
    I owned the shares but sold once I did the following analysis. The standardized measure of discounted future net cash flows is $ 6,072,981 on December 31, 2012 (page 102 of the 2012 10K http://bit.ly/YqDMHB ) and has declined from $ 6,614,860 December 31,2011. The long-term debt debt of Line was $6,037,817 December 31,2012 (page 31 of the 10K) . That leaves a net a net worth $35.16 million for shareholders (), while the Mkt cap is $8.40 billion There are 235.07M units so the value per unit is about 14 cents rather than $35 a share. If my analysis is correct Barron's was more than correct. If I am wrong, I would like someone to explain how I am wrong. Thank you
    May 6 06:05 PM | Likes Like |Link to Comment
  • Linn Energy's Dividend Still Looks Attractive [View article]
    I owned the shares but sold once I did the following analysis. The standardized measure of discounted future net cash flows is $ 6,072,981 on December 31, 2012 (page 102 of the 2012 10K http://bit.ly/YqDMHB ) and has declined from $ 6,614,860 December 31,2011. The long-term debt debt of Line was $6,037,817 December 31,2012 (page 31 of the 10K) . That leaves a net a net worth $35.16 million for shareholders (), while the Mkt cap is 8.40 billion There are 235.07M units so the value per unit is about 14 cents rather than $35 a share. If my analysis is correct Barron's was more than correct. If I am wrong, I would like someone to explain how I am wrong. Thank you
    May 6 06:03 PM | Likes Like |Link to Comment
  • Linn Energy And Berry Petroleum: 2 Companies For The Price Of 1 [View article]
    I owned the shares but sold once I did the following analysis. The standardized measure of discounted future net cash flows is $ 6,072,981 on December 31, 2012 (page 102 of the 2012 10K ) and has declined from $ 6,614,860 December 31,2011. The long-term debt debt of Line was $6,037,817 December 31,2012 (page 31 of the 10K) . That leaves a net a net worth $35.16 million for shareholders (), while the Mkt cap is 8.40 billion There are 235.07M units so the value per unit is about 14 cents rather than $35 a share. If my analysis is correct Barron's was more than correct. If I am wrong, I would like someone to explain how I am wrong. Thank you .
    May 6 05:54 PM | Likes Like |Link to Comment
  • ECA Marcellus Trust Is An Expensive Natural Gas Play - Income Investors Beware [View article]
    I think it boils down to a simple question: Would anyone buy shares in another trust from this company? The answer I think is fairly clearly NO
    Mar 28 11:23 AM | Likes Like |Link to Comment
  • Are ECA Marcellus Trust Holders About To Get WHXed? [View article]
    it does seem that ECA pulled a fast one and are now downloading their shares on the holders of the other trust. It strikes me as gross misrepresentation. My question is as follows: don't the underwriters and petroleum engineers have any fiduciary duty to the buyers of shares, that only a year ago were valued at $20 a share?
    Mar 22 04:23 PM | Likes Like |Link to Comment
  • Are ECA Marcellus Trust Holders About To Get WHXed? [View article]
    the Pv-10 already assumed $9 NG , which is deceptive
    Mar 22 04:10 PM | Likes Like |Link to Comment
  • Are ECA Marcellus Trust Holders About To Get WHXed? [View article]
    The S-1 is dated.
    Mar 22 04:08 PM | Likes Like |Link to Comment
  • Are ECA Marcellus Trust Holders About To Get WHXed? [View article]
    it's an excellent analysis. I started a while back to look at the PV-10 for trusts and other producing MLP. The PV-10 $78MM with a Mkt cap of $196.47MM suggests an overvaluation of roughly 251% with very rosy projections of $9 for gas. Sadly it is a lot of "gas" valuation. Those share are probably worth no more that $4.5. The insiders are simply skinning the shareholders. It is interesting that those gentlemen - John Mork and his son- were willing to do develop such a bad reputation. Who is going to buy a trust from them again?
    Mar 22 03:37 PM | 1 Like Like |Link to Comment
  • ECA Marcellus Trust Is An Expensive Natural Gas Play - Income Investors Beware [View article]
    However, first, they did include in the prospectus a schedule of prospective distributions that is clearly misleading. Second, they completed the wells faster than anticipated in order to get out of the priority distributions and third: they rushed to sell their shares /monetize their shares- they made an offer to NGT shareholders to roll into ECT and they were getting the cash ( $20 share or something). It all points out to a very deliberate well planned malfeasance.
    If there was one issue- fine - it's credible. But the cumulative evidence points out that this company can not be trusted. Once someone is not trusted it's a bad idea to do business with them
    Mar 22 10:54 AM | 1 Like Like |Link to Comment
  • ECA Marcellus Trust Is An Expensive Natural Gas Play - Income Investors Beware [View article]
    very interesting article. My question is addressed to Daniel Moore or anyone else who can shed light. Isn't there any liability by the petroleum engineering company and underwriters regarding the gross misrepresentations of reserves in the IPO?
    Mar 21 10:17 AM | Likes Like |Link to Comment
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