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Friday, Sep 20
Galbraith says Whiting should dump Whiting USA Trust
- Galbraith Global Management believes Whiting USA Trust I (WHX -7.2%) units are overvalued and urges 15.7%-owner Whiting Petroleum (WLL -0.1%) to divest its holdings in the trust.
- Galbraith says the board "should be aware of how drastically the market is overvaluing WHX's future distributions," and believes the value of WHX's remaining distributions to unit holders is likely be less than $3/unit.
- WLL can dedicate its capital more prudently, such as by investing in wells in the Red River region, if it divests its position in WHX, the firm says.