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  • Chesapeake Energy: Too Cheap To Ignore  [View article]
    The bond prices are signaling bankruptcy. If you want to take a chance with CHK, go for the bonds. Those are multi-baggers IF the company stays solvent. In any case, they might be worth more than zero in bankruptcy, the shares will be worth nothing.
    Feb 9, 2016. 11:40 AM | 4 Likes Like |Link to Comment
  • Wall Street Breakfast: Market Awaits Jobs Report  [View article]
    That looks about right. ZINC apparently compounded their problem by constructing a plant that doesn't work.

    I'm just surprised that its coming so quickly for LINE. I still think most of these small E&Ps will go broke. There is no reason for anyone to buy these companies when they can pick up the best assets later.
    Feb 5, 2016. 09:40 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Market Awaits Jobs Report  [View article]
    US coal exports to Asia were already in a steep decline: http://1.usa.gov/N3UkvF
    Feb 5, 2016. 09:22 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Market Awaits Jobs Report  [View article]
    LINE/LNCO is apparently heading for bankruptcy. Credit facility is tapped out and they're still hedged. Its a buyer's market for O&G assets. Looks bleak for the biggest E&P MLP.
    Feb 5, 2016. 08:55 AM | Likes Like |Link to Comment
  • Oil And Gas Master Limited Partnerships (MLPs): More Attractive Than Ever!  [View article]
    I don't know about that. I had to pay taxes to Arkansas, California, Colorado, Kansas, Mississippi, New Mexico, North Dakota and Oklahoma for 2013. I was not a resident in any of those states and had only MLP/LLP income from them.
    Feb 4, 2016. 04:03 PM | 1 Like Like |Link to Comment
  • Horsehead Holding files for Chapter 11 bankruptcy  [View news story]
    I doubt the assets are worth what they on the books for in bankruptcy.
    Feb 3, 2016. 05:55 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: What Will February Bring?  [View article]
    And Daley would know. "Vote early, vote often and vote even after you're dead" is the Chicago way.
    Feb 1, 2016. 08:21 AM | 16 Likes Like |Link to Comment
  • Is the mortgage REIT business going out of business?  [View news story]
    And (MLPV) is called today by UBS: http://bit.ly/1PFNAEb
    Jan 20, 2016. 04:19 PM | 3 Likes Like |Link to Comment
  • Is the mortgage REIT business going out of business?  [View news story]
    Early redemption is one of the risks with the UBS leveraged ETNs. MORL is just one that is in trouble; SMHD and MLPL are both worse. BDCL is looking bad too.
    Jan 20, 2016. 12:17 PM | 2 Likes Like |Link to Comment
  • Is the mortgage REIT business going out of business?  [View news story]
    It can get a lot worse, as it has in the past.
    Jan 20, 2016. 12:11 PM | 3 Likes Like |Link to Comment
  • Is the mortgage REIT business going out of business?  [View news story]
    NLY has been around since 1997.
    Jan 20, 2016. 11:15 AM | 7 Likes Like |Link to Comment
  • SunEdison prices second lien loans, strikes debt exchange transactions; shares -13.8% (updated)  [View news story]
    I assumed too much (i.e., that the warrants could only be used if debt is converted). That is a really bad deal. LIBOR + 10% and free stock as bonus.

    No wonder it went under $3 today.
    Jan 7, 2016. 03:52 PM | Likes Like |Link to Comment
  • SunEdison prices second lien loans, strikes debt exchange transactions; shares -13.8% (updated)  [View news story]
    On the second lien loans, there are 19.8 million shares associated with $500 million (25.25/share) and 8.9 million shares associated with $225 million (25.28/share). Using 317.6 million shares outstanding; those warrants associated with the second lien term loans represent a possible increase of 9% in the share count.

    The warrants associated with the second lien are not dilutive at the current share price. I don't expect any of these warrants will be exercised anytime soon, especially since the holders can collect LIBOR+10% on their money.
    Jan 7, 2016. 11:32 AM | 4 Likes Like |Link to Comment
  • Chesapeake Energy: What To Expect In 2016  [View article]
    IMO, if there is any interest by the majors it would be more toward cherry-picking assets at distressed prices. No point in acquiring the whole thing with the all the associated debt.
    Jan 6, 2016. 02:10 PM | 1 Like Like |Link to Comment
  • Chesapeake Energy: What To Expect In 2016  [View article]
    The bonds tell you better than the stock price that survival is in question. Those big discounts on the bonds tell you that bondholders don't expect to get paid.
    Jan 6, 2016. 01:46 PM | 1 Like Like |Link to Comment
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