Hate to say I called this one correctly for all those who hung on, but it sure looks that way. Still not too late to get out as I believe the share price is headed for $1.50 or lower. One of two things are going on. Hedge funds are having a field day shorting these oil LPs just because they can. If you think the short pressure on the stock is what you are reading as a percentage on those stock charts, forget it. The money being made here is 'day shorting' and the guys doing it are methodical and actually not too greedy. They're just going to take BBEP and a lot of others like LINE, etc. down below a buck and pocket their money a little at a time.
There is also the more unlikely probability that management knows the company is in some form of cash insolvent serious trouble they are not talking about. Given the amount of cash they could raise to keep things afloat at the expense of current shareholder's equity, an already weak cash flow could easily decline to a point where BBEP would simply have nothing left except what is guaranteed to the bond holders. No way to tell if they are cooking the books to weather this oil price decline but I am not encouraged by management cashing in their options as fast as they can shovel them out the door. Seriously....this is much too risky to bet more than a couple hundred dollars on....and if you have several thousand in it right now and don't bail, a couple hundred is exactly what you might end up with.
SBB
Pojama people, pojama people people...Lord they make you sleepy with the things they might say...
