C and J Energy Services Inc. (fka CJESQ)

[Omar6465]

I have a question I hope to answer do you change the number of shares after the completion of bankruptcy where I have 22,000 shares

[Omar6465]

Is Bankruptcy ended after the number of shares will remain unchanged or have 22,000

[Omar6465]

Utth

[JayQuin]

Definitely a good trading opportunity here!

[Joeyohso]

ok, just wanted to make sure I read it right. So buying now would just be a trade

[andrius]

read the news again. Appears current shares will be canceled once they exit bk but current shareholders will receive warrants in new equity.

[Joeyohso]

What is your advice on buying now? After the chapter 11 and before the re-emergence? Too much risk that they will wipe out common shareholders post chapter 11?

[andrius]

sounds like warrants will be good for 7 years and you could exercise at any time within the 7 year time frame. Strike price will remain the same.

Lets assume they issue 155M shares priced at $10. Market cap is now 1.55B. Your warrant will have $10 strike price.

Warrants are very similar in options in that you get a right to own a stock at a certain price for x amount of time. Like options warrants trade with a premium. Say in this scenario new stock is trading at $11. To own 1,000 shares will cost $11,000. If there was no premium warrants for 1,000 shares would cost you $1,000 being $1 in the money. Lets say stock dropped to $5. Someone owning 1,000 stock shares would lose $6,000 but the warrants for the 1,000 shares would only lose $1,000. Now say stock went to $22. The $11 shares would be up 100% or $11,000. The warrants for 1,000 shares would be up $11 for same $11,000 gain but at 1,100% since it only cost $1 per vs $11. The leverage you get in owning warrants ends up costing you in premium. Warrant that is $1 in the money here could trade $3+.

[andrius]

Your shares will continue to trade normal until they exit bankruptcy at which point they'll issue new stock equity to lenders. Current shareholders will get warrants which is basically a right to own new equity at predetermined price.

The way I understand at 1.55b valuation in new company old shareholders can exercise 93M in equity. What current shares are worth depends where new shares will trade at.

I think this is probably a great buy here. For one 50% of the float is/was short and shorts expected shares to get canceled with 0 value. Thats not the case so most will be covering with potential short squeeze. Also lenders basically swapped all debt for new equity. This will be a debt free company with about 1.7B in assets. They'll save about 25M a quarter in interest payments which will add 100m to bottom line each year. This should end up a profitable company.

Looking around seems a lot of oil stock market caps are priced about 2x assets-debts. So I'd assume new equity here will be worth about 3B. Current market cap here is 30m and if new equity trades around 3b market cap current shares should be about a 200% gain. 3B market cap - 1.55b warrant exercise price= 1.45B x.06= 87M. 87M from current 30M market cap should be about 190%.

This is just my opinion, if someone thinks different would love to hear the thoughts. happy trading and good luck.

[Renee]

Understood. Best of luck. EOM.

[DrUNC83]

This is not warrants I held prior to trading being suspended and bankruptcy. This is what was said in their press release.

", C&J plans to issue a series of seven-year warrants to existing common shareholders, exercisable for a total of up to 6% of new common stock at a strike price of $1.55B.
• C&J estimates emerging from Chapter 11 reorganization within 130-180 days."

Maybe someone else can try to answer my question as I don't think you understand it, though I appreciate your replies. I just want to know if thugs play out like their release, how do warrants work and how are they executed in this case. That is all.

[Renee]

You may presume that all warrants will be suspended until the Secured Creditors, Unsecured Creditors, the Company, and the Trustee work out an acceptable PLAN of Reorganization (acronym POR).

[DrUNC83]

I got that part but how do the warrants work? It said up to 6% or something along hat matter. Let's say they restructure and get out of bankrupsy. How does a warrant for them work or how is it allocated. How is it acted upon? I know these are probably dumb questions.

[Renee]

When a public company files for Chapter 11 Reorganization Bankruptcy it is 100 % about what the Secured Creditors want and of course, if the company can be viable after exiting BK.

Secured Creditors always want as much security as possible for their secured assets, and they are universally hostile to shareholders receiving any dispensation, which would (likely) include warrant holders.

Much depends on the monetary difference between total debts (secured and unsecured) and tangible assets (cash, land / buildings, verifiable contracts, etc).

So, if it is reasonable to argue that assets are usually discounted during bankruptcies (eg., fire sale valuations) then the Secured Creditors will likely argue that the debts exceed all assets, and because of their inherent risks in the reorganized company that they should obtain Court approval for every demand they have for augmented security.

All shareholders of stock BEFORE the bankruptcy was filed should contact the Trustee and ask for a Shareholder Equity Committee whereby if approved by the Judge a law firm would be appointed to represent the shareholders at cost to the company estate. *** Buyers of shares AFTER the bankruptcy was filed are never included because the Court views those share buyers as knowing the risks of buying shares.

[DrUNC83]

How do warrants for a bankrupt company work in general? Can you lay out hypothetical example with Cjes?

[Renee]

DrUNC83, others: Bankruptcy will change all aspects of warrants and offerings. The Trustee will make determinations presented by the Secured Creditors, subject to Court rulings on all aspects of the bankruptcy.

For now go to the company website for all information they provide. Eventually the company will present a PLAN of Reorganization that should have stipulations on all series of equity (shares) and warrants.

[Renee]

CJES changed to CJESQ, bankruptcy, and delisted from the NYSE to the OTC:

http://otce.finra.org/DLAdditions

[Hazmat927d]

I have the same question

[DrUNC83]

Sorry not savvy investor here. I had some CJES stock. I understand I will be offered warrants. How does that work and when do I have to decide to exercise those? If I wait will the strike price of the warrants remain the same? Any insight would be appreciated.

[Lots]

I meant OTC

[Lots]

Not really sure when it will start trading again. It could be tomorrow or as long as you say. Just be careful of what shares your are buying and remember there are creditors and bond holders to be paid when this starts trading again

[Hazmat927d]

This stock is frozen for the next 4 months?

[Lots]

For now until Oct trading starts. I think it will skyrocket when that begins and the dust settles.

[Vincent1974]

Game over??

[Lots]

Basically worthless until they emerge from bankruptcy. I will be buying it up when it starts trading again on OCT.

[Lots]

Shareholders who held in the bankruptcy will be issued warrants

[Vincent1974]

Lots, did you read the filling? Whats you opinion about it?

[Lots]

They just filed bankruptcy.

[Hazmat927d]

Halted? News pending? So what does that mean?

[G3TCRUNK3R]

uh oh, halted.... news pending..

[thepres001]

$CJES Looks Like ratings are holding and being reaffirmed

Jefferies Group restated a “buy” rating on shares of C&J Energy Services in a research note on Sunday, July 10th. Credit Suisse Group AG restated a “hold” rating on shares of C&J Energy Services in a research note on Thursday, June 2nd. Finally, GMP Securities upgraded C&J Energy Services from a “reduce” rating to a “hold” rating in a research note on Monday, July 11th.

Buying more in the $0.30 - $0.32 range. Look for news on Thursday 7/21

We should see $0.40 again next week

[Kylef]

Cjes consolidated keep watch.

[Kylef]

Should bounce soon...they trying to hold it back.

[Mcgill]

Good luck, just make sure you are not caught in the net when they announce BK.

[Joeyohso]

Who is it up to, to make that decision? New Lenders, company, court? I would like to look into this because I was thinking about buying in around .30

[Mcgill]

Wait until they file BK, then you will find out.

[Joeyohso]

Looks like they will try to squeeze this again

[ClayTrader]

* * $CJES Video Chart 07-14-16 * *

Link to Video - click here to watch the technical chart video

[Kylef]

Headed Up...Gonna Run up to 0.80

[Kylef]

Headed up!...Next Gale move. Or Gsat. Keep watch...

[Kylef]

Bottom of chart Bounce! Headed Up!

[Joeyohso]

nothing happened

[ClayTrader]

* * $CJES Video Chart 07-13-16 * *

Link to Video - click here to watch the technical chart video

[Lion33]

Or I can use it for taxes next year to offset my gains this year ??

[perfectpicksfor -you]

hope you did.

[Lion33]

Contemplating just to dump what I have just to keep what is left of this garbage!!!

[Mcgill]

Common shares will be wiped out with the issuance of new equity to debt holders.

[Blaze2]

I hope it flys up! ...but then again what do I know :)

[Mcgill]

Let's see what happens to the commons in a few days.

[Mcgill]

The forbearance agreement requires the company to enter into a restructuring support agreement with lenders by July 8, 2016, otherwise the forbearance will terminate. The rating reflects our view that the company will reorganize under Chapter 11. S&P