WallEye87
6年前
I hope I understand the question. The standard trading agreement is a seller of a short position in a stock is liable for any dividends paid to the shares shorted. In the case of a cash dividend, it is either settled from their cash position or added to their margin balance. Big fluctuations can result in the dreaded margin call.
Shorts often aren't compelled to fill on a dividend announcement, because of the customary drop in PPS following the exit of cash from the company for the payment. In this case (HCC), the special dividend announcement was part of a wave of other positive news, so I did not expect the drop in PPS to be a net wash out. But... at this juncture, it was.
Opinion only, not advice
Old Tymer
6年前
Well, if one has patients, I expect the price to rise back to where to it was. This seems like a pretty good company. Ever since it debuted it has gone up up up. It's been a jagged rise, but I would just as soon see that, then have it shoot straight up. I have confidence that within a few weeks, the price will be back in the $32+ range. Then you will have your original investment back, so you can enjoy your dividend gain. Patience.
WallEye87
6年前
As Bobby Bowden would say, "Dagummit!" The net effect of the special dividend is in the red as of this morning.
The special dividend wasn't the only pro here.. In the last few months... regular recurring dividends declared, analyst upgrades, stock buyback, creditor expansion of the operating lines (to support growth), performance thresholds met to satisfy restrictive debt covenants, & consistent quarterly earnings. But PPS still trading at a low multiple to EPS...
Long story short.. I expected the short term net effect to exceed the dividend %
The short position on the stock has declined, but the remaining shorts seem very resilient, even after two special cash dividends.
Opinions only
eastunder
6年前
I have owned HCC for awhile. Trying to remember how the last special went down...
Regarding a special:
If you sell right away, Technically your are getting your own money back, because the PPS automatically drops down to reflect the div.
You have to wait until the stocks pps returns back up to your purchase price to see the true value return of a special dividend.
My last purchase was at 29.11, stock adjusted on the ex date, I was paid the div, I waited some time to go back even on my position, which then made the dividend worth it. Then I sold.
Had I sold right away, I would have sold the position with a 6529.00 loss because the pps adjusted down, but I would have had a 6529.00 dividend (aka getting your own money back in the form of a dividend). Are you following me?
This chart shows the adjustment in a gap form - far left side.
6.529 div Paid last time with X date of 4/12
https://www.dividendinvestor.com/dividend-history-detail/hcc/
Numbers from Nasdaq history
https://www.nasdaq.com/symbol/hcc/historical
04/12/2018 23.98 open 24.56 22.5948 22.8 close 2,057,041 x date price adjusted
04/11/2018 30.71 open 30.8 29.36 30.22 close 1,791,274 last day to buy for special
So we had a 30.22 close on the day before Ex - and a 23.98 open on the ex date when pps was adjusted to reflect div
30.22-23.98 = 6.24 difference(div adjustment with pre market activity)
Just pointing that out.
Old Tymer
6年前
"Not too many Joe Shmos like me hold this stock. It is mostly institutional investors"
Whether you are an institutional investor or a single investor, I am having a hard time believing anyone would sell short of a $4.42 dividend. You hardly ever find anything this huge. So who in their right mind would be selling, and why? I checked with my broker and he said he doesn't see anything negative, as far as any red flags on the company. And taking a quick look at their financials, it appears last year was a pretty good year for them:
"WARRIOR MET COAL INC. (HCC) REPORT OVERVIEW
Warrior Met Coal's Recent Financial Performance
For the three months ended December 31st, 2018 vs December 31st, 2017, Warrior Met Coal reported revenue of $360.36MM vs $239.80MM (up 50.27%) and analysts estimated basic earnings per share $7.11 vs $1.83 (up 288.52%)."
I am completely stumped! I have been scratching my head trying to figure out what is going on. Does someone know something we don't? Don't know. Just have to wait and see what happens.
Good luck!
Kirk :)
WallEye87
6年前
Wow. Special cash dividend announced of $4.41/share which is approximately 14% of the current trading price with a future ex-div date. MMs report a material short position (approx. 14% of the float)
Why is this not blowing up? If you have followers, you might want them to know.
Warrior Met Coal Announces Special Cash Dividend
6:15 pm ET April 23, 2019 (BusinessWire) Print
Warrior Met Coal,Inc. (NYSE:HCC) ("Warrior" or the "Company") today announced that its board of directors has declared a special cash dividend (the "Special Dividend") of approximately $4.41 per share of Warrior's common stock, par value $0.01 per share. The Special Dividend, totaling an aggregate payment of $230 million, will be paid on May 14, 2019, to stockholders of record as of the close of business on May 6, 2019. The Special Dividend will be funded through cash on hand.
WallEye87
7年前
Thanks for the clarification. I misinterpreted the prospectus. Immediate assumption was the company was the seller. Honestly, I don't have a precedent of this example on anything I have owned. I would guess this sell off after lockup expiry was the strategy of the IPO investors from the beginning. I don't think they could be unhappy with the operational performance to date. My position is the same, I still like it, but can't get all of the moving parts(this 2nd offering, high short % on a positively trending young but profitable company, the anomaly special dividend, etc.). Best of luck
WallEye87
7年前
This one baffles me. EPS trending up for 1Q18... trading for less than 3x combined EPS of the last 4 quarters. Paid out a crazy special cash dividend in 4Q17 (close to 20% of the PPS at the time, ouch to the shorts); but the stock is still shorted approx. 17% of the float, reports crazy high institutional investor ownership & is experiencing an odd sell off because of announcing a 15% increase in outstanding shares for a capital raise. By basic evaluation methodologies, it is way undervalued if they dilute the shareholder 15% & don't make a single new dollar of earnings with the additional capital. Risk is they deploy it in a losing proposition. Have not seen that sort of trend from management yet, so...Yum, Yum, I may be dumb, but I'll take some more of this young company anyway. Opinions only, perform your own DD...
eastunder
7年前
HCC
4-18-18
23.51
Chart already adjusted for Special Div of 6.5286
No screen shot of prior x day (which is unusual for me not to snag)
However, price I noted on 4/9 was 29.11 - so chart adjusted, as expected, on the 12th for the special. Anyone who bought specifically for the special basically just received a ROC, unless they hold and wait for recovery back to the original amount.
Such is often the fun of a special.
Apr 12, 2018 X
Apr-13-2018 rec
Apr-20-2018 6.5286 Special
eastunder
7年前
Last Quarters results
Warrior Met Coal (NYSE: HCC) reported Q4 EPS of $1.83, versus $1.03 reported last year. Revenue for the quarter came in at $228.84 million versus the consensus estimate of $223.58 million.
Warrior reported fourth quarter 2017 net income of $97.2 million, or $1.83 per diluted share, compared to net income of $34.0 million, or $0.65 per diluted share, in the fourth quarter of 2016.
https://www.streetinsider.com/Earnings/Warrior+Met+Coal+%28HCC%29+Reports+Q4+EPS+of+%241.83%2C+Beats+on+Revenues/13819808.html
eastunder
7年前
Warrior Met Coal Sets Date for First Quarter 2018 Earnings Announcement and Investor Conference Call
4:32 PM ET, 04/09/2018 - Business Wire
BROOKWOOD, Ala.--(BUSINESS WIRE)--Apr. 9, 2018-- Warrior Met Coal (NYSE: HCC) today announced that it will hold its first quarter 2018 investor conference call at 4:30 p.m. ET on Wednesday, May 2, 2018.
Warrior Met Coal will release its results following the close of market trading that afternoon.
To participate in the conference call, please call 1-844-340-9047 (domestic) or 1-412-858-5206 (international) 10 minutes prior to the start time and reference the Warrior Met Coal conference call. A webcast of the conference call will be available through the Investor section of the Warrior Met Coal website, http://investors.warriormetcoal.com, where an archived replay will also be available.
Telephone playback will also be available beginning at 6:30 p.m. ET on May 2, 2018 until 6:30 p.m. ET on May 9, 2018. The replay will be available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and entering passcode 10117969.
Warrior Met Coal is a large-scale, low-cost U.S. based producer and exporter of premium hard coking coal (“HCC”) operating highly efficient longwall operations in its underground mines located in Alabama. The HCC that Warrior Met Coal produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties, and is of a similar quality to coal referred to as the premium HCC produced in Australia. The premium nature of Warrior Met Coal’s HCC makes it ideally suited as a base feed coal for steel makers and results in price realizations near the HCC industry index average price. Warrior Met Coal sells all of its met coal production to steel producers in Europe, South America and Asia. For more information about Warrior Met Coal, please visit www.warriormetcoal.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180409006401/en/
Source: Warrior Met Coal
Warrior Met CoalAnalysts and Investors, contact:Dale W. Boyles, 205-554-6129orNews Media, contact:William Stanhouse, 205-554-6131
eastunder
7年前
On Apr 3rd Warrior declared a special dividend (Which as of this post: Ex and record dates have already passed.)
Warrior Met Coal Declares Special Cash Dividend
Business Wire April 3, 2018
BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (“Warrior”) (HCC) today announced that its board of directors has declared a special cash dividend (the “Special Dividend”) of approximately $6.53 per share of Warrior’s common stock, par value $0.01 per share. The Special Dividend, totaling an aggregate payment of $350 million, will be paid on April 20, 2018, to stockholders of record as of the close of business on April 13, 2018. The Special Dividend will be funded through cash on hand, together with the net proceeds of Warrior’s previously announced offering of $125 million 8.00% Senior Secured Notes due 2024.
Warrior is a large-scale, low-cost U.S. based producer and exporter of premium hard coking coal (“HCC”) operating highly efficient longwall operations in its underground mines located in Alabama. The HCC that Warrior produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties, and is of a similar quality to coal referred to as the premium HCC produced in Australia. The premium nature of Warrior’s HCC makes it ideally suited as a base feed coal for steel makers and results in price realization near the HCC industry average index price. Warrior sells all of its met coal production to steel producers in Europe, South America and Asia. For more information about Warrior Met Coal, please visit www.warriormetcoal.com.
Penny Roger$
13年前
HCC Insurance Holdings, Inc. is a specialty insurer with offices in the United States, the United Kingdom, Spain and Ireland. The Company underwrites a variety of relatively non-correlated specialty lines of business in approximately 180 countries, including property and casualty, accident and health, surety, credit and aviation. Insurance products are marketed through a network of independent agents and brokers, managing general agents and directly to consumers. Its businesses are managed through five underwriting segments and its Investing segment. Its underwriting segments include U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit and International. The Company offers over 100 classes of specialty insurance. In January 2012, the Company merged its wholly owned subsidiaries Pioneer General Insurance Company with and into American Contractors Indemnity Company.
More from Reuters »
http://www.google.com/finance?q=HCC