Not a good sign. He wants nothing to do with the common stock even with the new warrants. It could be a slow, multi-year, bleed to the end.
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Yes the company is issuing it to him. Especially at the volume that is owed to him.
Do these stock payments to WB effectively dilute the stock by issuing more shares in circulation?
Post from TheLayoff.com
You are right about what he is doing with the loan/dividend. It was the dumping of his common stock that was reported in the filings. This was a position he took as he gave us the loan. Him dumping that, in addition to the stock payments are a sign of his lack of faith that they will return a profit in the near term. And like the poster said below... the warrants make it even less likely the stock will rise above the mid $20s anytime soon.
This means employees are in for a longer road of cheapskate leadership as right now their leash is getting shorter by the moment as they have to answer to institutional and retail shareholders who need the dividend to return.
I heard (from someone who should know) that Buffett is buying shares in CVX.
So that means he takes the shares OXY uses to pay his preferred dividend (which dilutes every other shareholder), sells them for cash, and then invests in the company that OXY paid $1 billion to in order to outbid them APC?
We are the laughing stock of the industry on SO many different levels....
You guys are misinterpreting Buffet's reason to sell the stock. Buffet never intended to own stock but rather receive the dividend in cash. Since Oxy is trying to preserve cash, they issue stock, then Buffet sells it for cash, which was his primary intention. It all works out! Quit getting nervous.
Well... working at Oxy just became a bigger downer
If I remember correctly, Buffet is still an owner as each payment in stock per quarter is about ~2% ownership based on current pricing of the stock. However him dumping his earlier position is probably just leveraging his portfolio differently. That first chunk of stock he was left bag holding and these payments are at the current market rate. Even averaging the both of those chunks, he is still left with a large position overpriced compared to the market. He wouldn't get that value back anytime soon compared to other sectors that will return earlier than oil.
He also wants out faster now that Ichan is involved. So really he is just a bank waiting for his loan and interest payments. He will make more in just letting those discounted stock payments come in and then selling immediately at the 10% higher market rate. 10% on top of th 8% he already is getting on his 10B. He is doing just fine.
Oxy shareholder's concern is that every payment made in shares dilutes their total worth. Add that to the influx of potential warrants at $22 a share and you have a long road ahead of you at a low stock price and thus hard times as an employee.
I figured the bonus is gone for sure this year. You would be crazy to think we will see one. My bonus is working from home. Saving on gas, wear and tear on car, tolls, cleaning, and getting three hours a day back in my life not commuting.
Uncle Warren just spanked Oxy. Get ready for more reduced benefits, wage cuts, and...No/reduced bonus. I guess the writing is on the wall. We are Oxy dummies!