Fundamentals or Funds voting with feet When she broke the news regarding Belcher, I couldn't find anything anywhere. Maybe I wasn't looking in the right places, but it wasn't on Poseidon's site, it wasn't on his LinkedIn profile, it wasn't on any google search related to Belcher and Poseidon. Gillisr, I don't think strelioff was ahead of the announced Belcher news. Well it is out now. https://ca.linkedin.com/pub/dave-belcher/2/302/300
If you are going to try to explain this in any other terms besides information that we don't have, I wouldn't get too creative. I will This is a touchy sensitive stock right now, it may have had some downward momentum that occurred by pure random chance. This random downward movement could have been interpreted as a signal that things weren't going well by other traders which triggered more downward pressure and led to more downward pressure still (positive feedback).
Random ….try reality - this is fund managers voting with their feet because
- management is not as fund friendly
- If you run a fund that mandates you can only hold yield stocks they had to sell their entire positions as this no longer meets their mandate.
- Window dressing
- Zero transparency which makes this a casino and not an investment.
The market didn't take the existing information that has been available for the past three weeks and suddenly re rationalize it to determine that this company is worth 50% less than it was worth at $1.50 – See above specifically management’s lack of interest to entertain fund managers.
I wonder if she reads anything into this current drop in share price of the past several days? Some fund managers blew out their positions either a yield mandate or management’s refusal to provide them clarity and they voted with their feet. Personally think I owe a huge apology to Dean Jensen as I believe he did the right thing for the company in the long run and took a hit from his buddy and his friends fund which mirror one another. Believe Donvillle took the position because Dean Jensen is bloody smart and is fund friendly. Think when Jensen went dark he threw away his position as did most. Jensen knows it is best interest for the company to chase after the 50 companies owing on the 400 tanks in the US than chasing after Baystreet. He also knows they will come back as quick as they left.
Perhaps the market is starting to discount the probability of PSN taking a substantial write off of uncollectable accounts receivable and taking it all in the 4th quarter earnings report. If they write it all off in one big blast instead of stretching it out over numerous quarters, that will reduce book value. As the stock is trading on book value at this point, and not trading on an earnings per share multiple or dividend, the market sensing a write off of significant size would pressure the stock price. Can't see that because they have that dividend owing on their balance sheet. They cut contracts with 50 US companies and think majority have the ability to pay while most here think they do not.
Ultimately, without a peep from Poseidon, all movement right now should be considered random, if you liked it when the dividend was pulled back on January 12th, you should still like it today if you believe the market is a perfect vacuum of information. Unless of course...it isn't a perfect vacuum of information... I like more today than I did when they spent all day pumping this as a growth high yield stock. The CEO comprehends growth headaches (Crescent Point ) and Jensen comprehends covenant headaches (National Bank). I just hope they are moving past money collection and on to inking a royalty stream and not a Kherson litigious stream and fight patent infringement……now that the conflict on the BOD left.
Still think 25% chance of going to zero and 75% chance of surviving and thriving. I will never tell people to buy this as Freehold Royalty is as high as they should go on the energy totem pole.....I am old school and think Crescent Point is too risky until recently for myself and see this position as short term...under 2 years