Oldtimer

Unbelievably, the No-Doc Loans Movement Gains Steam

Fine - allow no doc loans but make it a federal crime to collateralize them or pass them to third parties in any form. If the banks had to eat their own cooking they might be a little more prudent.

Atlas Energy Resources Merger with Atlas America Seems a Good Move

PITTSBURGH--(BUSINESS WIRE)--Apr. 27, 2009-- Atlas America, Inc. (NASDAQ: ATLS) (“Atlas America”) and Atlas Energy Resources, LLC (NYSE: ATN) (“Atlas Energy”) today jointly announced that they executed a definitive merger agreement, pursuant to which a newly formed subsidiary of Atlas America will merge with and into Atlas Energy, with Atlas Energy surviving as a wholly owned subsidiary of Atlas America. In the merger, each Class B common unit of Atlas Energy not currently held by Atlas America will be converted into 1.16 shares of Atlas America common stock, and Atlas America will be renamed “Atlas Energy, Inc.” The Atlas America board of directors has approved the merger agreement and has resolved to recommend that the Atlas America stockholders vote in favor of the transactions contemplated by the merger agreement. The Atlas Energy board of directors and a special committee of Atlas Energy directors comprised entirely of independent directors have also approved the merger agreement and have resolved to recommend that the Atlas Energy stockholders vote in favor of the merger.

“As one of the leading producers in the Marcellus Shale with control of over 550,000 acres in its fairway, it is imperative that we redirect our Company’s cash flow to fully realize the potential value of these assets for our existing unitholders,” stated Richard D. Weber, President of Atlas Energy. “We believe that, by merging with Atlas America, we will create a new entity that will have the financial resources to accelerate and expand the development of our Marcellus Shale assets where we have already identified 4 to 6 trillion cubic feet of additional reserves.”

Edward E. Cohen, Chairman and Chief Executive Officer of Atlas America, said that “the merger transaction should significantly enhance the value of the combined enterprise for investors in both Atlas America and Atlas Energy. The merger will allow the combined companies to sharply accelerate expansion and development of its Marcellus Shale position by reinvesting a far greater portion of its combined cash flow in America’s greatest natural gas play. And the other benefits are enormous.”

The merger is expected to simplify the organizational structure of the Atlas companies and create a more attractive investment opportunity with a larger public float. In addition, the merger is expected to enhance value to Atlas Energy by eliminating the effects on the public stockholders of the block represented by Atlas America’s approximate 48% common unit ownership and management incentive interests in Atlas Energy";

The above is a direct quote from the ATN website. ATN unitholders will cease to exist as will the dividend. Each share of ATN will be converted to 1.16 shares of the new company which will be named Atlas Energy. I hope you don't really believe Atlas America will resume paying the dividend when they clearly stated they need the money to "invest" in further development. What better way to get these funds than screwing the unitholders.

316766 should do a little reviewing himself.




On Apr 29 11:01 AM User 316766 wrote:

> Can't people understand what they read? ATN will be a subsidiary
> of ATLS. The dividend is suspended only until the merger is completed.
> ATN will remain an LLC, distributions will continue post-merger.
> Cash is not being used from ATN to finance ATLS operations. Plus,
> ATN unit holders receive 1.16 shs of ATLS for every share of ATN
> the hold. So no one should panic, but instead brush up on their financial
> reasoning skills. To sell out of a position in ATN right now might
> seem smart, but consider that on 4/27 the merger was announced approximately
> 1:30pm and ATN rose $2 by market close (that's 2 1/2 hours). It's
> gone up both Tuesday and Wednesday (today). Why sell? Because one
> does not have financial literacy, and perhaps should not be in the
> market to begin with. On the other side of this deal, folks may be
> sorry they sold!

Bank of America Buys Countrywide - Who Gains and Loses?

A truly great side of the mortgage mess (at least as far as Cleveland, Ohio is concerned is the fate of many of the homes here which are in foreclosure. As soon as these houses are vacated, they are cannibalized by some of the local "entrepreneurs" for everything that can be sold for scrap. (siding, windows, plumbing, wiring and even windows and doors.) Guess you could call it evaporating equity!! The end result is a derelict house which is an attractive nuisance and blight on property values and which can never be rehabilitated. Of course, the public will be expected to clean up the mess by tearing down the housing or it can be left standing to attract rats, addicts, gangs to the further detriment of the neighborhood. And you wonder why there are lawsuits.

Why Gasoline and Food Matter When Measuring Inflation

Food and energy only matter to those who don't count anyway so why include it. Jaga has hit the nail on the head for those who cannot hedge their (nearly fixed) wages against commodity price increases (caused in part by excessive money supply). In an earlier world, labor would have gone on strike to increase their wages to compensate for what to them is a real increase in their living expenses - that reaction is no longer available as organized labor has been essentially crushed by the same people who are responsibe for the excessive money supply.

Who would have thought that by simply importing cheap labor, exporting skilled jobs, and printing money, a vast and permenant lower class could be created so quickly. Oh yes, buying both political parties also helped a lot!