Tossed some money into this stock (MCEP) and it's a partnership. Right now it's worth nothing but they're making a shit ton of money every quarter. I'll explain further. 3 classes of shares: Common 30 million shares Preferred stock 20 million shares broken down: Preferred A ($25 million @ 8% interest) Preferred B ($15 million @ 10% interest) $67 million in a line of credit @ 5.5% floating. Common shareholders are restricted from any dividend/payout for the forseeable future unless oil prices ramp up a lot(which they may soon). All excess cash must go to debt reduction and CAPEX. Market cap fully diluted is about $15 million and it makes probably about the same in net income each year. The stock is getting hosed and it looks like it may be bottoming. Looks like a FNMA style play. My question here is if there is any way an activist investor could step in and reorganize this thing. Preffered holders are raping this thing at the moment on the interest so they wont want to let go of it. (although their common isnt worth much.) Would it have to go through courts or is there another way to reorganize? Im assuming someone with deep pockets could step in here and figure out a way to make a killing off of it if they reorganized they preferred and soaked up the debt. But I could be completely wrong. Another thing that makes this interesting is, short interest is through due to the junk status of the commons. (Sorry for the long read)
My assumption is that someone could stick $100 million in ($2 per share) and get at least $15 million a year out of this. P/E of 10 this would be worth $3 and debt free.