DISCLOSURE: I added to my PJT Partners holding today, in the midst of an absolute rout of the banking sector. I see you laughing, pigdogs, but Maven will prevail. Buy when others are fearful, bishes.
I have already lamented in an earlier post regarding the Privileged Son of a Privileged Son who fucked me and anyone else remotely associated with this firm. May he rot for the next two decades in the same cell with Bernie Madoff.
But that is old news, isn’t it? Move on – seek opportunity in any Financial Meltdown. Call it bottom-feeding, baby-with-the-bathwater investing. Emotion simply cannot be part of this equation. That is not easy when one is currently underwater, even if only by a few hundred bucks.
So I need a Plan, a reason to buy more of this crap. What do they do…what is their milieu. How do they generate cash flow. Can they whether a storm? Better yet, can they thrive in it? In this case I believe they can. The answer is the current dire straits of West Texas Intermediate crude oil and it’s unfortunate producers of the fracking variety of Black Gold, Texas Tea. Pummeled beyond belief, the carnage in this space has only just begun.
Case-in-point – I’ll grab just one fiasco: Energy XXI Ltd. (NASDAQ: EXXI). One of many distressed players in the crude oil field, PJT is handling their financial plan, such as it is:
Shareholders are holding the bag here and have only recently won a seat at the Liquidation Table, while bondholders will be getting pennies on the dollar. But one must assume the bankers and lawyers are divvying up some nice fees
The shareholders of troubled oil and gas company Energy XXI Ltd. (EXXIQ) have won a seat at the table. A bankruptcy judge last week agreed to appoint an official committee to represent equity, the costs of which will be added to Energy XXI’s restructuring tab. Facing the risk that they’ll be wiped out in the restructuring, the shareholders have raised questions about the true state of Energy XXI’s financial affairs. The shareholders will now have the cash needed to hire advisers to investigate. ([email protected]; @lilliannnn)
Houston’s Energy XXI, an oil and natural gas development and production company that relies heavily on acquisitions, issued a warning to investors in early March. “Absent a material improvement in oil and gas prices, or a refinancing, or some restructuring of our debt obligations or other improvement in liquidity, we may seek bankruptcy protection to continue our efforts to restructure our business and capital structure and may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements,” the company says in an SEC filing. PJT Partners LP serves as Energy XXI’s financial adviser. Source.
MORE DISCLOSURE: Yes, as stated above, I own this stock. I want the price to go up as it is currently $324 below my cost. I do not care whether you buy it, sell it or will it to your Siamese cat. It is my opinion only, and damn you to hell if you try to blame me for your own trading results. I am also riding on the Upper Deck of Captain Fly’s Ark, sipping margaritas with two nubile Asian girls. I did not realize Asian girls were a separate species – but it is not my Ark – and I never question the Rules.
The future belongs to those floating above the flood.
If you enjoy the content at iBankCoin, please follow us on Twitter
