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Ron Reed

 
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  • Chesapeake Energy (CHK -0.8%) has exploited little-known laws in Texas and at least three other states to force land owners to hand over drilling rights and sometimes forfeit profits, according to the latest Reuters special report on the company. Land brokers, land owners and lawyers say such deals are pushing ethical and legal limits. [View news story]
    Many people don't understand how surface rights and mineral rights work and sometimes get ugly in the real world. If you own land and do not own the mineral rights, the owner of the mineral rights has the right to access those minerals. They (mineral right owners) almost always work very hard to come to an agreement with the land owner before anything else is done to cover damages in access, use loss, etc. Most companies (CHK included) will bend over backward for the land owners just to keep them happy, going over and above the original agreement. For example, building roads to suit the landowner's use later on, building fences where and of what type the landowner wants, restriction of movement when livestock is out, clearing more land that the oil company needs (so the landowner gets more grazing land), etc. Some people are just totally bent on not allowing access and they are the ones that end up on the short end. Generally they are folks that would never be satisfied and end up being taken to court and loose all the mandated funds to pay for the legal fees. I'm sure each case is a little different but I've seen a lot of both sides and rarely does the oil company screw the landowner.
    Oct 2, 2012. 05:19 PM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Yes, and more dramatic actually. The est. range from -$0.02 to +$0.01 with the average of the 23 following at $0.00. When a stock comes in at any large percentage positive or negative the higher the swing the more the market will react. So If we see a $0.05 or a -$0.05 reported that is 500% higher than or lower than the average consensus numbers. Granted it will not move to the same magnitude as a more solid company that is making money and has been for a while. Should earnings come in just as estimated then the focus comes on the rest of the numbers and should all the numbers come in just as expected I'd expect the stock to jump a good 10% or more and work its way back up to the $5.00 point after a few quarters of good solid performance. Looking at the overall sentiment I think most investors are expectation a pretty negative qtr. If the come in more than 10-15% negative I expect a flat run down which I cannot even hazard to guess how far before they bounce back up and find a new low.
    Oct 1, 2012. 06:21 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    You know, the odd thing here is that unless he is lying about his FOI requests, just the mere hint of a problem with little value in the actual article has made him more money than a proper article would have since it will be generating clicks. Then he could also be opening a short position just as he sees if his article has made any difference in the market. His lack of interest (or defense) to all the critics here has me seriously wondering his motivation. I've kept neutral on the issue and asked for more info and get no response. I'm surprised SA did not intervene on this, then again we get back to the publicity issue for them too, where is that motivation pushing the editors? I do agree that the article should not have been published as written as I think it lacks substance, and should have had more info contained within. But hey I guess if it makes him money and he's not exactly doing anything illegal like GOA did, then more power to him and we are just the sheep adding to it.
    Sep 27, 2012. 03:17 PM | 1 Like Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    Thank you for replying, can you address the questions I asked please? They may have been missed with all the comments posted:
    What was the reason for the request? What is the evidence that led you to make the request? What do you suppose is the reason for investigation? While the information you have provided is interesting, it is not enough.

    You may be right or wrong, time is the only thing that will allow that decision to be made. I'd like more info myself and don't think enough was given to warrant the article; what was presented was almost a tease.
    Sep 27, 2012. 07:29 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    I notice the author has not bothered to respond to any questions.
    Sep 26, 2012. 09:27 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    Well, at least one editor had to approve it right?
    Sep 25, 2012. 11:36 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    What was the reason for the request? What is the evidence that led you to make the request? What do you suppose is the reason for investigation? While the information you have provided is interesting, it is not enough.
    Sep 25, 2012. 11:16 AM | 1 Like Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    For the time being nothing. With a Strangle you do not make minor changes once it has been implemented unless you see the change you were either expecting, reached the point you have set to get out of the trade, or decide that the trade was a failure and attempt to re-coup some monies.
    Sep 25, 2012. 07:25 AM | Likes Like |Link to Comment
  • Why Ethanol Is Well Entrenched [View article]
    Mmmm...farm land...now that is a an interesting fall-out of this whole deal isn't it. I've thought about doing an article on it for a while. It is so very amazing what can turn into a bubble and be so missed by the general public (talking heads) while all the entrenched folks scream about it.
    Sep 24, 2012. 05:00 PM | Likes Like |Link to Comment
  • Facebook (FB) gets the Barron's treatment, making the cover along with an assertion it's worth $15/share. "Success in mobile is no sure thing," writes Andrew Bary, not surprisingly focusing on the rapid shift in the company's user base away from desktops. Mostly ignored by the sell-side, the firm has a whopping stock-based compensation expense. Toss this in, and even at $15, the shares would trade at 35X 2013 estimates. [View news story]
    Or a lot of folks just shorted based on a "trusted" source and will get bit in a week. Hard to tell really....
    Sep 24, 2012. 04:58 PM | Likes Like |Link to Comment
  • Frontier Communications (FTR -0.9%) is adding another $200M to its debt refinancing efforts. The carrier, which has $8.3B in debt on its balance sheet, has issued a follow-on offering of $200M in senior notes due 2023. (PR[View news story]
    Talk about stacking it up.
    Sep 24, 2012. 04:34 PM | Likes Like |Link to Comment
  • Facebook (FB) gets the Barron's treatment, making the cover along with an assertion it's worth $15/share. "Success in mobile is no sure thing," writes Andrew Bary, not surprisingly focusing on the rapid shift in the company's user base away from desktops. Mostly ignored by the sell-side, the firm has a whopping stock-based compensation expense. Toss this in, and even at $15, the shares would trade at 35X 2013 estimates. [View news story]
    You might be right, but the amount of money that would have to go into such an animal would wipe out Z's fortune, not to mention that they have no idea what they are doing when it comes to a tangible market, I'm pretty sure they are still flying rather blind (not that there are any roadmaps where they are going as it is).
    Sep 24, 2012. 07:52 AM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    The only difference using the 22 DEC 12 will make is the added time value to the cost. You would however gain the advantage of extra time if nothing made the stock move more than $0.10-$0.15 up to and past the earnings call. There is a pretty slim chance of no news effecting the stock, but it could happen.

    Looking at the 22 Dec 12 the spreads are P $0.35-$0.37 and C $0.32-$0.33. The same overall price movement applies to the 22 Dec 12 set-up and the movements while not exactly the same, will be similar (adding in or subtracting the additional time-value)
    Sep 21, 2012. 02:39 PM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    I did not intend to either promote long nor short. I attempted to make the article as neutral as possible on the long term outlook of ZNGA; the options trade presented is a short term play taking advantage of high volatility.
    Sep 21, 2012. 11:12 AM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    A correction has been submitted.
    Sep 21, 2012. 10:58 AM | Likes Like |Link to Comment
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