Having been a PSA holder in the past and gotten out, I really feel sorry for the current shareholders as I see no way of either PSA going into BK or issuing so many shares that the price goes down into the single digits.
They'll have a billion shares on issue worth basically nothing.
First, PSA needs cash to pay off its debts.
Second, PSA needs more cash to to the need P & A of assets in the GOM. ($5 million plus right there!!)
Third, PSA needs cash to keep operating.
Fourth, PSA needs cash to drill wells to earn more cash to keep operating.
Fifth, PSA needs cash for BG.
Where in the world are they going to find someone to put up the cash given their current situation? The USA assets minus the debt and P & costs are probably woth a negative number.
BG which is PSA only PSA's real asset can be flogged, but they would be a price taker and not a price asker. With their current situation an offer would be made and it would a be a really lowball offer: take it or leave it.
IMO PSA shares are priced at a ridiculous level and I wouldn't touch them with a ten foot pole.
PSA Price at posting:
18.0¢ Sentiment: LT Sell Disclosure: Not Held
