Ken Marinai

Ken Marinai
Send Message
View as an RSS Feed
  • A Safe 9.4% Yield From A Debt-Free Company  [View article]
    Howard Jonas offered this preferred as a one for one swap for common stock. They raised no money with it. The company "line" is that they wanted to give investors a choice of getting a dividend or the chance for capital gain on the common.
    I guess this is partially true, but I have heard the main reason was to reduce the number of common, of which Jonas is the largest shareholder, to make each share more valuable.
    I, like an idiot, chose to convert a healthy 5 digit share position to preferred. Now the common sells for 4 to 6 dollars more, depending on the day.
    But, like the author, I see zero chance of a missed dividend no matter what happens over in the Golan.
    This preferred was not "floated" to raise money, and it did not.
    Howard Jonas promised not to convert any of his common to preferred in the swap.
    Now we know why. He is at 12 we are at 7.
    I have been a holder for years so have collected a lot of ROC dividends in the meantime.
    Nov 21, 2015. 02:10 PM | 2 Likes Like |Link to Comment
  • A 10% Energy Sector Yield With Low Utility Sector Risk: GNE Preferred Stock  [View article]
    It is ROC (return of capital). No current taxes due. Just reduces your cost basis.
    It states this in the press release regarding the dividend declaration.
    Apr 25, 2015. 04:39 PM | Likes Like |Link to Comment
  • Miller Energy Resources - Another Distressed Preferred With 176% Upside Potential  [View article]

    You need to read the whole prospectus, not just the summary page on Quantum.
    This is an excerpt from the IPO for the C. The D contains no such language.
    The change of control clause is obviously applicable in both cases, and is standard language in any preferred offering

    "Each outstanding share of Series C Preferred Stock shall be convertible at any time at the option of the holder into that number of whole shares of our common stock as is equal to $25.00 per share, plus accrued and unpaid dividends, divided by an initial conversion price of $10.00. The initial conversion price and the conversion price as adjusted are referred to as the “Conversion Price”. A share of Series C Preferred Stock called for redemption shall be convertible into shares of our common stock up to and including, but not after, the close of business on the date fixed for redemption unless we default in the payment of the amount payable upon redemption.'

    Your article is factual, unfortunately, your last comment has a slight oversight.

    No big deal.
    Jan 31, 2015. 09:58 PM | Likes Like |Link to Comment
  • Miller Energy Resources - Another Distressed Preferred With 176% Upside Potential  [View article]
    At this price the D just yield more. They should trade close to each other give their coupon is almost the same. The C is convertible to common, but at much higher price than the current price, so the conversion option should have minimal effect on the premium the C currently has on the D.
    They should be trading somewhere around the same price, but the C is trading at a 1.50 plus premium to the D right now.
    Jan 31, 2015. 03:39 PM | Likes Like |Link to Comment
  • Miller Energy Resources - Another Distressed Preferred With 176% Upside Potential  [View article]
    Westelk in regards to your comment about management veracity

    "Management declares dividends "sacrosanct".

    I read that many times over the years, and it has often turned out to be pure management BS. As with any company, watch what the do, not what they say."

    I agree it is not always true. But in this case, I guess you haven't looked at the form 4 filing on December 17th for Carl Giesler. He bought 10,500 preferred D back then. I doubt he would be buying them if they truly were not "sacrosanct" at least in his opinion.

    As to the issue of hedged production, it is current production numbers that are hedged. This seems like enough since they are transitioning to NG for the foreseeable future anyway and likely will not be increasing oil production soon.

    I thought this was a good balanced concise evaluation of the current position of Miller energy.

    Thanks for taking the time to write it. If enough people see it, it should have an effect on Monday's trading I would think.
    Jan 31, 2015. 01:35 PM | 3 Likes Like |Link to Comment
  • A 10% Energy Sector Yield With Low Utility Sector Risk: GNE Preferred Stock  [View article]
    You forgot one of the most important points. Every time they issue preferred, they swap it for common, bringing down the number of common shares. The whole reason for doing the preferred is to lower the number of common shares, so when the company starts to take off the common shareholders will benefit greatly.
    In these exchanges the CEO has stated he will never trade his common shares for preferred. This will increase his profit as the common shares can go up and the preferred shares can be called at 8.50 sometime down the line. I am heavily into the preferred because I like the safety of GNE's 100 million dollar cash position in the bank with no debt and the possibility of the bonus dividends sometime in 2016?
    Jan 26, 2015. 11:23 AM | Likes Like |Link to Comment
  • These Oil Companies Will Suffer The Most  [View article]
    Apply what vireoman said about UPL to MHR rinse and repeat. Did you look at the companies before you wrote this to see who is NG vs Crude?
    MHR 90pc NG and less than 10pc crude.
    Dec 3, 2014. 11:30 AM | 2 Likes Like |Link to Comment
  • Magnum Hunter Resources: Vulnerable In The Face Of Lower Oil Prices  [View article]
    Within 6 months, MHR will produce no oil. They only liquids they will have are NGLs.
    They have announced many times their intention to sell all Bakken props. They have executed on part of this already. They have very productive Marcellus/Utica acreage. They could sell the rest of their pipeline and retire more than half their debt.
    But nonetheless, I opened this page, and you get your penny.
    Oct 31, 2014. 03:55 PM | 3 Likes Like |Link to Comment
  • LINN Energy Announces Permian -- California Trade With Exxon Mobil Corporation 
    Retroactive to June 1, 2014
    Sep 18, 2014. 11:36 PM | 1 Like Like
  • To Handsomely Beat The Market, Buy Petroamerica Oil With Both Hands  [View article]
    Regarding commissions and foreign fees, I have purchased 215,000 shares of PTAXF at Merrill Edge for the grand total of 0 dollars commissions. All you have to do is have an account value of 25,000 dollars to get over 100 trades a month free.
    I have bought all kinds of these foreign deals through them, NATDF (now NADL)
    AWLCF, where all my investment friends were paying 50.00 fees at Schwab etc. for no cost whatsoever at merrill edge/bofa. Look into it, esp on these low priced deals. You can scale into them in drips and drabs for free.
    For the vast majority of my trades, I use interactive brokers because of their 1pc margin rate and 6.5 margin leverage at that low rate.
    Just my strategy FWIW.
    Aug 31, 2014. 01:08 AM | 5 Likes Like |Link to Comment
  • 3 Attractive Energy Names For Under $10 A Share  [View article]
    GST also had a great Enercom presentation. Look for good news with their Utica/Marcellus wells in September. Their property is adjacent to MHR which has had very nice results. Look for more like 13, 14 by year end 2015. If you get a chance, listen to it on their website.
    Aug 24, 2014. 04:31 PM | 1 Like Like |Link to Comment
  • 3 Attractive Energy Names For Under $10 A Share  [View article]
    The CPE presentation at Enercom is worth a listen. They are adding a rig in q4.
    Their stack play with pad drilling will accelerate their growth. They will be drilling 4 to 6 zones in the Permian.
    Aug 22, 2014. 11:54 PM | Likes Like |Link to Comment
  • Genie Energy - Arbitrage Play With 10% Return In A Month  [View article]
    I had been buying the preferred because I wanted it especially from an ROC standpoint. I started buying the common when the offer was announced. Believe me, the preferred is hard to buy and sell, there is always a spread and I would buy maybe 1 or 2 thousand a day max, otherwise I would be shooting myself in the foot by moving the market up while not having a full position.
    The common was easier, for a while, but now there is no point in trying any arb play. I am long both the common and preferred now, and comfortable tendering and keeping all for the 8.2pc ROC yield rather than moving the market myself trying to maneuver for 5 more cents. I think the preferred has a very safe yield.
    Jun 1, 2014. 09:01 PM | Likes Like |Link to Comment
  • Magnum Hunter's Series E Preferred Could Be A Lucrative Opportunity  [View article]
    MHR has a lot of great acreage in the Utica/Marcellus. But they also has the majority interest in the Eureka Hunter pipeline. If anything untoward should happen, they could always sell the pipeline only and pay off their senior debt.
    Rarely do you see a company which is as risky as you assert, whose preferred stock sells at or above par.
    May 3, 2014. 12:48 PM | Likes Like |Link to Comment
  • Strong Demand Will Keep BreitBurn Afloat  [View article]
    I love Breitburn here too. I am way long, but wish they would create an entity similar to what LINE with LNCO.
    That makes tax planning way easier. The majority of LNCO dist is classified as ROC, which, to me is a far better tax advantage than the MLP system.
    I own both in size. Like Bretiburn's coverage and LNCO's tax structure.
    thanks for the article.
    Nov 24, 2013. 07:16 PM | Likes Like |Link to Comment