Coastal Eng Share Discussion Threads

[chrysalis99] 26/6/2013 22:49

Marben,Do you think this reflects the US's revitalised energy supply, in that the market is saying that the global price of energy will be coming down in the medium term? Or is it more of a risk-off approach? I don't think it is a phenomenon limited to Canada judging by the dwindling prices of smaller oils stocks listed in the US and London also.

[ranj79] 26/6/2013 22:06

Looking for some info. This stock is listed in Canadian and British markets. Coastal have announced that they are buying back shares, is this in both markets or only one? Thanks.

[marben100] 26/6/2013 21:26

Guys,

Be aware that Coastal is far from being the only company hit like this. The Canadian market is absolutely dire at present.

I do have some other Canadian-listed natural resources investments and all have been hit badly this year, pretty much irrespective of performance.

Cheers,

Mark

[ricky46] 26/6/2013 21:12

This price is surely rediculous..... Has the oil all disappeared? I must be missing something here. Or maybe something underhand going on here, I don't know what to think.....

[algomas] 26/6/2013 15:12

unbelievable!!

[luminoso] 25/6/2013 18:26

I just had to buy back in here, annoyingly in bite sized chunks, even though I have recently reduced a lot of oil holdings out of a disillusionment with market reaction to them and fear of them being further sold off on oil price declines. The value argument here is too compelling - with or without buy backs, IMO.
To keep my exposure to oil limited, I dumped my LOGP. My deliberations there helped greatly by a superb write up by Marben on sharesoc.

[rivaldo] 25/6/2013 10:51

The usually rather well-informed Belt posted late yesterday on IV:

hxxp://www.investorvillage.com/smbd.asp?mb=11837&mn=22412&pt=msg&mid=12903143

Extract:

"The buyback will start this week and could start as early as tomorrow. I expect CEN to be aggressive on the buy meeting their daily cap out of the gate."

[briggs1209] 25/6/2013 00:21

wow, left a buy order at $13 CAD, did not really think we would get that far but it got filled today. Can't imagine that I will not be able to shift them for $19.50 at some point in the next 18 months.

Odd market at times

[dukedosh] 24/6/2013 13:21

Nice trading Riv, well done.

I reckon we've seen the bottom now too.

I'm also on a full (overweight) position, loaded further last week with quite a few extra traders.

Management promised to act this week if the share price was still in a weak state. On that basis, we can reasonably expect this buy back to start imminently.

[rivaldo] 24/6/2013 09:05

Having sold my stock at 1250p and just below I completed my buying back this morning and have ended up with almost 40% more shares than I had previously. It's rare that a "cunning plan" ends up as well as that!

Morti1, it means that the forthcoming share buybacks will provide a floor for the stock at around the current price as the share price will be supported.

Given CEO's illiquidity any decent buyback programme should imo lift the share price very nicely indeed. Hopefully the blackout before the programme commences will be lifted any day now.

[cwa1] 24/6/2013 09:01

I believe it means that the forthcoming share buyback should put a "floor" underneath the share price and that it shouldn't, therefore, retreat much further than it already has due to the company buying. IMHO, of course, :-)

[morti1] 24/6/2013 08:32

Thank you for your article eddie. I read the paragraph towards the end:
"While we find the surface-based operational delays irritating, executives have clearly received the message that they need to reevaluate their recent methods for communicating with shareholders. The market has delivered this message savagely and without mercy. This lack of communication and transparency has led to over a 30% reduction in share price YTD. Our belief is that once the blackout period ends for Coastal Energy, we will begin to see an aggressive buyback of shares at current price levels. This is a company that maintains a large insider presence with a small outstanding float; and we believe this buyback should floor the stock."....what does it mean?..."we believe this buyback should floor the stock".???

[eddie catflap] 23/6/2013 18:31

Well spotted Mark. I appreciate the clarification.

Cheers.

[marben100] 23/6/2013 16:21

Thanks for that Eddie. The article, however, contains one important error/misunderstanding, it says:

"The NAV represents the 'value of the company based on the production and sale of its producing and future producing assets' according to Tom C. Wach of Wall Street Oasis."

However the NAVs the author is quoting are RISKED NAVs, which include an estimate of the value of exploration assets, which may or may not have a commercial value. To have a true "margin of safety" you have to compare the share price with the CORE NAV per share, comprising producing assets and near-production development assets. FirstEnergy's core NAV is now $21.34. Still a good margin of safety.

Cheers,

Mark

[eddie catflap] 23/6/2013 10:13

Excellent, informative article courtesy of sophocles via IV.

hxxp://seekingalpha.com/article/1514082-coastal-energy-company-a-traditional-value-investing-opportunity

[thegreatgeraldo] 21/6/2013 15:45

sg31
21 Jun'13 - 14:26 - 892 of 892 0 0

Royaloak, who do you use? Do you know if they do an ISA account?

I ask because I have most of my funds in a TDW ISA. They insist that if I sell any stocks the money must be converted back to £'s as other currencies cannot be held in an ISA

....It's not TD, it's HMRC rules with an ISA

[royaloak] 21/6/2013 15:43

Hi sg31

I use TDW also, but I do not buy canadian stocks in my ISA because of the reasons you say, it is expensive. I only trade canadian stocks in my ordinary account.

I have held a lot of canadian $'s since 2009, the heady days of IAE. so when I buy canadian stocks on my order I specify canadian $'s, and of course when I sell I have to specify canadian $'s otherwise the default setting is £'s.

Years ago I would have dealt IAE and XEL in Canada when they were MM stocks in the UK for the same reason as I buy CEO there now. So of course I trade the UK stocks in my ISA.

[sg31] 21/6/2013 14:26

Royaloak, who do you use? Do you know if they do an ISA account?

I ask because I have most of my funds in a TDW ISA. They insist that if I sell any stocks the money must be converted back to £'s as other currencies cannot be held in an ISA. At their currency charges that makes the round trip quite expensive.
Brokers I've spoken to who are cheap on currency conversion don't offer an ISA account.
Most of my holdings are long term (years) so it's not much of a problem but occasionally there are opportunities for a quick turn where expenses do take a chunk.
Most of my investments these days are in N American markets

[dukedosh] 21/6/2013 14:17

royaloak 21 Jun'13 - 13:55 - 890
"I keep all of my money for canadian stocks in canadian $'s."

That wouldn't work for me.

[royaloak] 21/6/2013 13:55

Dealing costs less than £10, I keep all of my money for canadian stocks in canadian $'s.

Remember also I can put my order on the Bid in Canada as it is DMA.

[dukedosh] 21/6/2013 12:55

Indeed, if the spread doesn't get you then the forex spread and charge will. Not much in it for retail investors.

[sg31] 21/6/2013 12:30

It depends on what you get charged on the currency conversion.

[royaloak] 21/6/2013 11:30

Chart looks awful, however against my better judgement bought a few in Canada last night as the fundamentals are excellent.

If I have made a mistake not so costly to get out in Canada as the spread is usually no more than 2/3 cents, would not buy in the UK as a rip off MM stock.

[sg31] 20/6/2013 18:19

DD, nice one, I paid a bit more.