Seeking Alpha
  • Mercy Jimenez
    CHANGED MY MIND on PGH; mngmt fails to juggle acquisition, capex, price hedge; now drops div 43%; when I lose confidence in mngmt I flee..
    7/6/12
    Reply (34)
    • DaLatin: Thanx for heads up !
      7/6/12
    • Mercy Jimenez: liquidated in pre-market 4 small loss; PGH pps may recover but better options like AT don't cut dividends http://reut.rs/LZH7mI
      7/6/12
    • DaLatin: just took 6.26 6 cent loss.. good job MJ
      7/6/12
    • DaLatin: Too bad OM is on road.. That is one of his kids
      7/6/12
    • Mercy Jimenez: I'll send him a PM -- although he may want to take the risk of of holding out for a recovery.
      7/6/12
    • DaLatin: cool....But,time is only thing thats precious.. moving on as you did....... pura vida
      7/6/12
    • Mercy Jimenez: 6/15/12 CFO said: "Pengrowth has no plans to cut its dividend, Chris Webster, the company's chief financial officer, said by telephone.
      7/6/12
    • DaLatin: Sold RSH as soon as I heard same thing and that was one of my best lie detections
      7/6/12
    • Mercy Jimenez: Credibility completely lost when 20 days later makes a 43% dividend cut http://bloom.bg/PJIJVH
      7/6/12
    • Mercy Jimenez: FYI - Bid in pre- market has gone from $6.42 to $6.03.
      7/6/12
    • DaLatin: Looking at NASDAQ chain ! Volume picking up 2 ! gracias X 2
      7/6/12
    • DaLatin: 5.80 best bid now last 6
      7/6/12
    • neobliviscar: Just peeked at PGH. Flash look said they are burning cash while stock piling it on their balance sheet? I'm sure there is an explanation..
      7/6/12
    • neobliviscar: ..certainly a different beast than what we normally play. We need new companies for the fund to watch. AT (ok) any others to rec?
      7/6/12
    • Mercy Jimenez: Cashflow from ops fell 38% Q1 from lower ng price; this am said div cut due to <prices; didn't CFO know that 6/15 when he said NO div cut?
      7/6/12
    • neobliviscar: Yep, that sort of two face happens to much with Chinese companies we follow. Big issue with Canadians is the div withholding. Others to rec?
      7/6/12
    • Mercy Jimenez: I don't "recommend" any stocks :-)) but can tell you I am long and overweight AT Atlantic Power; no div cuts during 2008-09 ...
      7/6/12
    • Mercy Jimenez: contract locks through 2016 supports div even if no new growth; payout ratio high due 2 acquisitions;Q1 project cash flows rose nearly 160%
      7/6/12
    • declanfromtrinidad: conspiracy theory : whoever was dumping their stock a few days ago, at lows, knew of the upcoming dividend cut. high volumes then.
      7/6/12
    • Mercy Jimenez: Unfortunately - I would not be surprised w/ PGH Declan.
      7/6/12
    • declanfromtrinidad: i may be an amateur, but whenever there is high volumes with a stock that is in the opposite direction of its sector...there is a story!
      7/6/12
    • Ocean Man: I didn't think PGH would cut til next year, but the 45% drop YTD likely was in anticipation of this div cut, especially after ERF cut.
      7/7/12
    • Ocean Man: So might be mostly baked in already. I'll stick around a while, but definitely lost conviction and faith in mgmt.
      7/7/12
    • DaLatin: Any scoops yet. Says the greedy DL ?
      7/7/12
    • Ocean Man: Haha, no not yet. 4-day trip.
      7/7/12
    • DaLatin: be safe youngster
      7/7/12
    • neobliviscar: MJ: Printed out 10Q of AT. Went over in relative detail. See good bit of potential reward. See some risk requiring more study. Strategy: ..
      7/9/12
    • neobliviscar: This is definitely one I would love to options open a trade into a position. Unfortunately, options are very thin. Takeaway: someone must
      7/9/12
    • neobliviscar: have bought Aug12.5 puts when it plunged. Person is looking to sell them at 0.10 now. A 0.05 bid would probably get hit. Cheap insurance ??
      7/9/12
    • neobliviscar: Or waste of money? I haven't looked up open interest to see where the person probably put on this presumable hedge.
      7/9/12
    • Mercy Jimenez: Neo if AT management is 2B believed their cashflows +divs are contract locked through 2016; if huge position at stake cheap insurance ...
      7/9/12
    • Ocean Man: Bad bet imo. AT should have never dropped under 13, that secondary was tiny and accretive. Right back to 13.50 - 15 trading range.
      7/9/12
    • Mercy Jimenez: may appeal--short interest has grown recently; unlikely new share offering soon; big pps swings down not common w/ AT barring mega meltdown.
      7/9/12
    • Mercy Jimenez: Also U asked above 4 other high yielder ideas besides AT; may want 2 check Peyto, Arc Resources+Talisman; natgas exposure w/ battered prices
      7/9/12
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