did three trades in the trades thread on Williams, two are looking good the last put is not.
here is some info on the stock.
latest earnings were announced late April and since then the stock has gone down over 20%, after having a good run off the bottom
WMB reported earnings of 51 cents for the quarter, which surpassed consensus earnings of .41. should be noted .05 cents of earnings was a one time gain, still beat the street.
book value $11.90 aprox.
WMB has reported the value of their investment in WCG(Williams communications) at .10 on the dollar. example of a companies management wasting billions of shareholders equity going into a business they should not have.
WMB has reduced debt from 70.5% to 66.7%. with further sales they should reduce the debt by less than 61%.
SP may reduce may reduce WMB credit rating while Moodys will probably maintain its current rating of Baa2. however the debt position is improving so going forward there should be no more downgrades (famous last words)
part of the decline in the stock could be
because of Dynegy (DYN) (another stock going to look into to), and Enron. Which just seems to come up with something different to make the news.
Williams should be able to survive, and look cheap. Warning. The stock is not strong on a technical basis, and always concerned that there may be something that I have missed or they did not report. stock is either cheap and good value or a glorified nightmare. For now I believe it is good value.
recap of Wiliams trades in the trades thread
1. Feb 19,2002 August $15 4 puts $2 = $800
2. feb 19,2002 400 shares at $16.72 plus sold covered calls August $17.50 for $2.20
3. March 21,2002 sold August $20 put for .55 (actually got $1) but this is .55 which was the losest price when I posted. bad trade, may write calls to offset the put which may be excercised, will wait for now.
thanks
selkirk
here is some info on the stock.
latest earnings were announced late April and since then the stock has gone down over 20%, after having a good run off the bottom
WMB reported earnings of 51 cents for the quarter, which surpassed consensus earnings of .41. should be noted .05 cents of earnings was a one time gain, still beat the street.
book value $11.90 aprox.
WMB has reported the value of their investment in WCG(Williams communications) at .10 on the dollar. example of a companies management wasting billions of shareholders equity going into a business they should not have.
WMB has reduced debt from 70.5% to 66.7%. with further sales they should reduce the debt by less than 61%.
SP may reduce may reduce WMB credit rating while Moodys will probably maintain its current rating of Baa2. however the debt position is improving so going forward there should be no more downgrades (famous last words)
part of the decline in the stock could be
because of Dynegy (DYN) (another stock going to look into to), and Enron. Which just seems to come up with something different to make the news.
Williams should be able to survive, and look cheap. Warning. The stock is not strong on a technical basis, and always concerned that there may be something that I have missed or they did not report. stock is either cheap and good value or a glorified nightmare. For now I believe it is good value.
recap of Wiliams trades in the trades thread
1. Feb 19,2002 August $15 4 puts $2 = $800
2. feb 19,2002 400 shares at $16.72 plus sold covered calls August $17.50 for $2.20
3. March 21,2002 sold August $20 put for .55 (actually got $1) but this is .55 which was the losest price when I posted. bad trade, may write calls to offset the put which may be excercised, will wait for now.
thanks
selkirk
