How is this stock trading under $7.00? even if they completely cut their dividend, and the stock is penalized, punished and beat up to junk status:
-Margins are still very healthy
-Low case CF of $100MM for 2013 yields 1.25/shr x 6 multiplier = $7.50/share
-Limited need for Capex until they reach higher Utilization.
-Recent commodity price levels are finally finding support, both Oil and Gas.
- Can easily reduce Dividend from current levels, and likely find investor support which should expand trading multiple
Im long, and strong. Worst case scenario imo, they get bought out in single digits. Their cost structure and capex requirements are minimal. If this was going to happen, now is the time, then they have sufficient equipment, and ability to slash div's to continue operating in a more cash sufficient environment. Its always good to have options and its not like they need to be worried about upsetting the funds anymore for cutting their divs since the trading multiple is already crushed.