GREY:LSTMF - Post by User
Post by
PUNJABIon Oct 15, 2014 5:48pm
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Post# 23031673
This stock has taken one of the biggest hits.
This stock has taken one of the biggest hits.From a high of $9 just in July 2014 it has taken the biggest hit. At today’s close it has lost 60 % of its value. Just in last four trading days it has lost about $.84 in share.
It has gone down on huge volume. Looks like that HFT find it easy to knock it down & trade it. It has got some nice intraday swings.
Market seems to have over done in this case as this stock seems to offer better value in the sector.
The share price loss could also be related to limited hedge position. Were these guys sleeping on the switch when the WTI was trading over $105 this summer? TBE has 60 % production hedged.
Share price indicates that the management is not on the ball & is punishing the stock.
You have to give them credit on their timing for selling the assets and reducing debt. Sold one of the best assets.
At $3.60 with a div yield of 13.08 % is not a bad investment. Monthly div payments are about 8m. They should have hedged about 50 % of their production. If the payout ratio goes above 100 % they will be forced to reduce capex.
They had already cut div by half. They dare not touch it again.