| | | Re: SFY
I expected their capital budget cuts. The key thing to watch is to see if they are able to replace production from well depletion over the next year. They are pretty efficient in their drill pad layout and this is evident by the announced result from their Fasken results.
The Fasken 27H, 28H, 29H and 30H were all recently completed with an average initial production rate of 20.8 million cubic feet of gas per day (Note: I believe I read that drilling cost for these Fasken wells come out to $0.74/MMBtu, so current NG prices does cover their marginal cost of production and provides the necessary FCF to help cover bond payments.)
I see you can buy the 6/2017 7.125% bonds for 47.96500. I was lucky to have sold all my SFY shares 12/19 at $4.73/share booking a small loss. I put that money into these bonds at $0.56/100. Since they are selling 16% lower in price, I may up my bond holding by 25% rather than buying back my common shares.
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Re: Discovery Communications, Inc. (DISCA) - started position @ $31.63/share.
I started a small position in this company too. After watching how cable bills have increased and the success DIS has had w/ ESPN, I needed some exposure to the cable industry content since I no longer am adding to my Comcast Corporation (CMCSA) (purchased 10/2005 @ $18.58/share). In fact, I make close out my CMSCA and buy more DISCA if I can get it below $30.00/share.
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Other recent Buys/Sells
Re: Campus Crest Communities, Inc. (CCG) - bought back 60% of my shares sold 8/2014
Anglo American plc (AAUKY) - bought back shares sold 11/2014
Nevsun Resources Ltd. (NSU) - started small position @ $3.85/share (4% div)
MHRpC - upped my position by 25% w/ avg cost at $20.12/share.
Sold 20% of KMI high priced shares at $42.07/share- booked a small gain. I plan to buy the equivalent number of KMI/WS warrants at/near $3.00/share to maintain KMI exposure for next 24 months.
Holding 6% cash for deployment into other stocks on my watch list including FCX, CMLP, AGCO, RGP and others. No rush but focused on income & growth.
EKS |
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