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Strategies & Market Trends : Value Investing
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To: hoyasaxa who wrote (51328)4/17/2013 11:34:38 AM
From: E_K_S2 Recommendations  Read Replies (2) of 78473
 
Hi hoyasaxa -

Re: MHR

I think that is what is now in question; their stated "reserves". Auditor would not sign off on that and some other issues. Auditor was fired. Banks lend on future reserves and it sounds like Evans said screw you, I will pay off all our bank loans and do future financing through preferreds and/or common shares.

So for me, the key lies in the assets they own, the cash flow those assets produce, and if there is sufficient FCF to operate (ie. drill wells) and pay interest on those preferred shares.

I tend to like the MHRpC's better than the D's and E's as they are superior to the other preferred shares. I bought more MHRpC's today.

Payments on all the preferreds will be stopped according to the 8K until their audit, bank revolver and 2012 financials are resolved.

I am a cautious buyer of only the preferred C's at this stage.

There are too many other bargains presenting themselves so I am out finding some of those.

VALE is one that is getting close for a buy.

EKS
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