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UDF Files Brief to Oppose Kyle Bass and Hayman Capital Appeal
Company Release - 11/15/2018 10:56
GRAPEVINE, Texas, Nov. 15, 2018 (GLOBE NEWSWIRE) -- United Development Funding (“UDF,” as described below) announced today the filing of its Appellate brief in the Texas Judicial Branch Fifth Court of Appeals (the “Appeals Court”) in the matter of J. Kyle Bass, et. al. versus United Development Funding, L.P., et. al.
[....]
http://investors.udfiv.com/Mobile/RecentPressReleases.aspx?iid=4213398
*FWIW I'm currently experiencing trouble getting into the Dallas County Court Portal to read the brief. Perhaps one of you will have better luck.
Marker:
United Development F (UDFI)
3.78 up 0.05 (1.34%)
Volume: 21,873
Quarterly Report (10-q)
Date : 11/14/2018 @ 5:24PM
Source : Edgar (US Regulatory)
Stock : Blue Dolphin Energy Co. (QX) (BDCO)
Quote : $1.05 0.0 (0.00%) @ 4:26PM
https://ih.advfn.com/p.php?pid=nmona&article=78693098
Apparently Thompson & Knight LLP wasnt let in on the dirty little secret...which only served to mislead investors all the more.
Is the SEC our friends??... or foes?? Im having a hard time differentiating.
Thank you for that report...I think our board will appreciate the info...good job!
Can you provide a link so our other readers can examine the release in its' entirety? Thanx
Notification That Quarterly Report Will Be Submitted Late (nt 10-q)
Date : 11/13/2018 @ 4:18PM
Source : Edgar (US Regulatory)
Stock : United Development Funding Iv (PN) (UDFI)
Quote : $3.85 -0.15 (-3.75%) @ 4:31PM
Source:
https://ih.advfn.com/p.php?pid=nmona&article=78680480
This is an excerpt from page 22 of Dale Kitchens Affidavit:
GE and Sears have little in common except they're both iconic brands with a long and distinguished history but they appear to be floating down the same river in the 21st century. Despite selling off its most valuable brands to remain afloat Sears went over the falls. GE is doing the same thing. It remains to be seen if GE can pull the raft over to the shore before it too suffers the same fate.
GE sells off Boston-based lighting division, Current as parent company slims down
https://www.bostonglobe.com/business/2018/11/06/sells-off-boston-based-lighting-division-current-parent-company-slims-down/f1oZQWePOCWQdS7YdiywBI/story.html
Marker:
General Electric Com (GE)
$9.2147 down -0.2053 (-2.18%)
Volume: 82,628,126
Full Disclosure EB - I hold no position in Gastar...and it's highly unlikely I will. I'm here to do a little play by play announcing is all. It seems the market has been in a bit of a malaise as the big election approaches.
Personally I think Gastar is a terrible investment. Daytraders may make a buck or two but thats always laced with far more risk than they'll admit to. Think Russian Roulette. I know this isn't your first rodeo EB and you're well aware of the hype game that always accompanies a bankruptcy.
There have been over 300 O&G bankruptcies since November of 2014. About half of those were publically traded. You can count on one hand how many of those included equity in with the reorg ..and out of those few none (the companies or its shareholders) have done well upon exiting bankruptcy ..which begs the question why should Gastars' outcome be any different?
For me Gastars' ultimate success (for the company and its new or old shareholders) has less to do with how they structure a POR than it does that whatever plan Gastar comes up with it won't change the properties they hold. Oklahoma STACK players need $80 oil minimum to play ball. Gastar may find bankruptcy easier to survive than the task they'll be faced with post emergence.
Best of luck in whatever you decide to do here EB.
Marker:
Gastar Exploration I (GSTCQ)
0.029 down -0.001 (-3.33%)
Volume: 1,112,700
A and Series B Preferred Stock Holder retains Hunton Andrews Kurth and Surveys Preferred Stock Class
https://www.prnewswire.com/news-releases/gastar-exploration-inc-series-a-and-series-b-preferred-stock-holder-retains-hunton-andrews-kurth-and-surveys-preferred-stock-class-300705544.html
Marker:
Gastar Exploration I (GSTCQ)
$0.02925 up 0.00775 (36.05%)
Volume: 2,012,898
Added 10 shares @ $667
Marker:
Texas Pacific Land T (TPL)
$664.99 down -5.01 (-0.75%)
Volume: 12,831
Price of WTI currently at $63.21 @ bbl.
From the 8-k released this morning;
Arcosa, Inc. Begins Trading on New York Stock Exchange Under ACA Ticker Symbol
Date : 11/01/2018 @ 8:30AM
Source : Business Wire
Stock : Aca Capital Holdings (ACA)
Quote : $27.87 up 5.87 (26.68%) @ 11:03AM
Conversely;
Trinity Industries, (TRN)
$22.18 down -6.37 (-22.31%)
Volume: 1,688,872
As expected and predicted GSTC could not avoid bankruptcy. Expect the filing very soon.
RSA = Restructuring Support Agreements
Current Report Filing (8-k)
Date : 10/29/2018 @ 7:03AM
Source : Edgar (US Regulatory)
Stock : Gastar Exploration Inc. (GSTC)
Quote : 0.0155 -0.0295 (-65.56%) @ 11:56AM
[....]
Item 1.01 Entry into a Material Definitive Agreement.
Restructuring Support Agreements
After an extensive private marketing process, beginning in August 2018, Gastar Exploration Inc. (“ Gastar ”) embarked on a public marketing process to try to address its balance sheet liabilities. On August 21, 2018, Gastar publicly filed a process letter that again invited proposals and informed the public how any interested party could participate and make a proposal. The process letter established the bid deadline of October 1, 2018 (the “ Bid Deadline ”). Gastar received three bids on the Bid Deadline, none of which provided a basis for repaying Gastar’s indebtedness described below. Gastar’s board of directors (the “ Board ”) determined that none of these proposals presented an actionable alternative.
In parallel with the foregoing marketing process, Gastar engaged with funds affiliated with Ares Management LLC (“ Ares ”) regarding a comprehensive financial restructuring transaction. On October 26, 2018, Gastar and its subsidiary (collectively, the “ Company ”) entered into a restructuring support agreement (the “ RSA ”) with (i) AF V Energy I Holdings, L.P., an affiliate of Ares (the “ Consenting Term Lender ”) and party to the Third Amended and Restated Credit Agreement, dated March 3, 2017 (as amended, restated, modified, or supplemented form time to time, the “ Term Credit Agreement ”) (ii) certain holders affiliated with Ares (the “ Consenting Noteholders ”) of the Company’s Convertible Notes due 2022 issued pursuant to the indenture dated March 3, 2017 (as amended, restated, modified or supplemented from time to time, the “ Second Lien Indenture ”), by and among Gastar, as issuer, the guarantors specified therein and Wilmington Trust, National Association, as trustee and collateral agent and (iii) certain holders affiliated with Ares (the “ Ares Equity Holders ” together with the Consenting Term Lender and the Consenting Noteholders, the “ Consenting Parties ”) of Gastar’s outstanding common shares (the “ Existing Common Equity ”), to support a restructuring (the “ Restructuring ”) on the terms set forth in the term sheet annexed to the RSA (the “ Restructuring Term Sheet ”). The RSA contemplates that the Company will file for voluntary relief under chapter 11 (the “ Chapter 11 Cases ”) of the United States Bankruptcy Code (the “ Bankruptcy Code ”) in a United States Bankruptcy Court (the “ Bankruptcy Court ”) to implement the Restructuring pursuant to a “prepackaged” plan of reorganization (the “ Plan ”) and the various related transactions set forth in or contemplated by the Restructuring Term Sheet, the DIP Term Sheet (defined below) and the Exit Facility Term Sheet (defined below). Shortly after entering into the RSA, the Company commenced solicitation of the Plan consistent with section 1126(b) of the Bankruptcy Code, which solicitation the Company anticipates will conclude on or about October 30, 2018. After the conclusion of such solicitation, the Company intends to commence the Chapter 11 Cases to implement the transactions contemplated by the RSA and Plan.
Pursuant to the terms of the RSA and the Restructuring Term Sheet, the Consenting Parties and other interest holders will receive treatment under the Plan summarized as follows:
• holders of claims under the DIP Facility (defined below) arising on account of the New Money Loans (defined below) will receive pro rata participation in the First Lien Exit Facility (defined below) in an amount equal to such claims arising on account of New Money Loans;
• holders of claims under the DIP Facility, other than claims arising on account of the New Money Loans, will receive (a) pro rata participation in the Second Lien Exit Facility (defined below) up to an aggregate amount of $200 million and (b) to the extent any such claims exceed $200 million, such excess will receive a pro rata share of 100% of the common equity in the reorganized Company (the “ New Common Equity ”);
• holders of claims under the Term Credit Agreement will receive (a) to the extent there is remaining availability under the Second Lien Exit Facility, pro rata participation in the Second Lien Exit Facility in an equal face amount not to exceed $200 million and (b) to the extent any such claims remain outstanding, their pro rata share of 100% of the New Common Equity, subject to dilution upon the issuance of common stock upon exercise of the New Warrants described below and pursuant to a new management incentive plan to be entered into at the discretion of the board of the reorganized Company following emergence from bankruptcy (the “ Management Incentive Plan ”);
[....]
Source:
https://ih.advfn.com/p.php?pid=nmona&article=78556630
Update on the additional Institutional Holders list as of 3/31/2018 you provided back in July; *note - other than Kovack Advisors the numbers held (or sold out) are as of 6/30/2018.
KALOS MANAGEMENT, INC. 06/30/2018 34,706 0 0.00 127
KOVACK ADVISORS, INC. 09/30/2018 24,539 1,106 4.72 90
RPG FAMILY WEALTH ADVISORY, LLC 06/30/2018 22,679 22,679 New 83
STONEBRIDGE CAPITAL ADVISORS LLC 06/30/2018 10,022 0 0.00 37
VANTAGE INVESTMENT ADVISORS, LLC 06/30/2018 7,120 0 0.00 26
RISK PARADIGM GROUP, LLC 06/30/2018 0 (22,179) Sold Out
The first column identifies the institution, the next is the date this data was captured, the next is the total number of shares held, the next is the change in shares held since last reported, next is the change in number held expressed as % and the last number represents value in $1,000's.
Source:
https://www.nasdaq.com/symbol/udfi/institutional-holdings
Marker:
United Development F (UDFI)
$3.66 down -0.34 (-8.50%)
Volume: 12,564
Re-read Enterprising Investors post(s) for insight. Pay particular attention to estimates on timing.
Imo anyone with a average of $9, or preferribly even less, should be ok. Good luck.
Marker:
Hi-Crush Partners LP (HCLP)
$7.735 up 0.235 (3.13%)
Volume: 1,578,630
Thank you for pointing that out Capt. Obvious.. and thank you for burying my post within minutes of its debut...that was really swell of you.
Im no Warren Buffett as some envision themselves to be but I'm fairly sure those of us who hold this were somewhat aware things were not going our way these past couple months. Im not sure what gave it away ..perhaps the daily drops in pps...hard to say exactly but it didnt take Seeking Alpha to illuminate us.
Other than that I have no opinion.
Marker:
Hi-Crush Partners LP (HCLP)
$7.625 down -0.675 (-8.13%)
Volume: 3,827,641
Baker Hughes U.S. rig count as of Oct. 19, 2018 was 1,067 which is +4 rigs over one week ago and +154 rigs over what it was one year ago.
The price of WTI crude currently stands at $66.17 @ bbl.
The average price of WTI in 2018 thus far has been $67.22 @ bbl.
By contrast the average price of WTI in 2017 was $50.84 @ bbl. and closed the year at $60.42 @ bbl.
And to go back a little further in 2016 the average price of WTI was $43.58 @ bbl. and closed the year $53.72 @ bbl.
Source:
https://www.macrotrends.net/1369/crude-oil-price-history-chart
These numbers on rigs and the price of WTI are definitely positive but regardless of the positive trend and this most recent correction on Wall St. combined with the seasonal drop in oil prices in general (to use a painful pun) have been crushing Hi-crush Partners LP stock!..... Ouch!
Marker:
Hi-Crush Partners LP (HCLP)
$7.71 down -0.59 (-7.11%)
Volume: 3,606,314
Marker:
Gastar Exploration I (GSTC)
$0.055 up 0.002 (3.77%)
Volume: 408,933
*price of WTI crude is $70 @ bbl. which is down 3 or 4 bucks from summer highs. When an oil company can't support their debt structure on $70 oil you know they won't be getting up off the canvas...down for the count. Any bidders for their properties would have to get them at fire sale prices or it just isnt worth buying.
Seritage Growth Properties (SRG) Provides Business Update with Respect to Recent Events Regarding Sears Holdings
October 15, 2018 9:15 AM
Seritage Growth Properties (NYSE: SRG) (the “Company”) today provided a business update related to the recent announcement by Sears Holdings Corporation (“Sears Holdings”) that Sears Holdings has filed for Chapter 11 bankruptcy protection.
“All of our capital investment, leasing and development activity over the last three years is unlocking substantial value, and has significantly diversified our income stream with approximately 70% of our signed leased income now coming from diversified, non-Sears tenants,” said Benjamin Schall, President and Chief Executive Officer. “We have $1 billion of cash and committed capital under our Term Loan facility, which provides us the funds to complete all of our on-going redevelopment projects and cover reductions in cash flow that may result from the potential disruption in Sears income. The completion of our redevelopment projects brings our signed leased income on-line and will replace any potential lost income from Sears Holdings.
[....]
To read the full article click below:
https://www.streetinsider.com/dr/news.php?id=14704501
Marker:
Seritage Growth Prop (SRG)
$43.50. up 1.75 (4.19%)
Volume: 928,291
Marker:
Sears Holdings Corp. (SHLD)
$0.313 down -0.094 (-23.10%)
Volume: 12,238,728
*For anyone over 60 it is a sad day to see Sears fall. They held a unique place in Americas retail heart for most of the 20th century. So what happened? A combination of things..the list reads like an elderly persons medical chart..first it was this then that.. but the biggest death blow was the day Sears hit an iceberg with the initials ESL on it.
Sears will always be remembered fondly for those who grew up with the company. RIP
I've been hard on Greenlaw & co for sure ..he has a way of creating uneasiness. He operates UDFI like its an unlisted REIT. Whatever.
Then you add in this trifecta dispute between Bass and Greenlaw/MM and it's not hard to put together that there is alot of bad blood between these guys. And what we're caught up in is their own private war..and to hell with everybody else.
Last July EI posted this and I think it's worth revisting;
Long time no see db7..good to see you.. and thanx for the input.
This recent action by the SEC most likely isn't retaliatory driven..I would agree with that...thats just not how these Gov't agencies typically role. Cracking down on late filers is a routine activity for the SEC and one of their core responsibilities.
I question the wisdom (or lack thereof) shown by management. There may be 135 companies on the SEC's September bad boy list but how many of those have missed putting out financials for 3 years running?...how many have just come out from a 4 year SEC investigation?..how many had an FBI raid? ..How many had shareholder lawsuits? How many saw > 80% of shareholder value disappear?
Answer- I'm thinking just 1. That would put UDF in a catagory all by themselves. This is not the kind of notoriety that wins hearts and minds.
I think every NOTIFICATION(S) OF LATE FILING SEC doc they put out since Sept. Of 2015 has had this statement in it - "On November 19, 2015, Whitley Penn LLP, the Registrant’s former independent registered public accounting firm, informed the Registrant that it had declined to stand for reappointment as the Registrant’s independent registered public accounting firm (previously reported in the Registrant’s Current Report on Form 8-K filed on November 24, 2015). The Registrant engaged EisnerAmper LLP as its new independent registered public accounting firm (previously reported in the Registrant’s Current Report on Form 8-K filed on June 8, 2016). The audit of the Registrant’s annual financial statements and review of the Registrant’s quarterly financial statements are ongoing, and the Registrant is working diligently to complete and file all necessary periodic reports as soon as practicable; however, there can be no assurance as to when the Registrant will be able to file such periodic reports".
Am I the only shareholder who thought that despite the SEC' s investigation that our accountants / auditors were simultaneously hard at work so as to be ready the minute the SEC gave the green light?? Maybe so.
But I think many other shareholders, expected to see the financials within days if not hours following the settlement with the SEC. But that didn't happen..in fact a couple MONTHS went by.
When I called IR to inquire as to what was taking so long [to get the financials out] they said 'the auditing work had stopped during the SEC investigation and only now that the SEC completed its investigation could UDF once again resume the work'.
The explanation, as I understood it, was implying that all this time the SEC was doing their thing UDFs' accounting/auditing work had to stand-down. However thats not what the notification of late filings were saying.
Its a frustrating situation we have here and it could all end tomorrow if they just put out the damn financials.
I still think Bass & co are guilty as heck and should lose big...but I think these are the kinds of communication inconsistencies by UDF that can catch the attention of a short selling hedge fund.
Take care db7 ..and if you're in this good luck!
Chevy
Current Report Filing (8-k)
Date : 10/03/2018 @ 5:17PM
Source : Edgar (US Regulatory)
Stock : United Development Funding Iv (PN) (UDFI)
Quote : $4.70 0.1 (2.17%) @ 4:31PM
On September 27, 2018, United Development Funding IV (the “Trust”) received an Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, File No. 3-18832, dated September 24, 2018 (the “Order”). The Order was issued by the U.S. Securities and Exchange Commission (the “Commission”) via Release No. 84273 and commences an Administrative Proceeding alleging that the Trust failed to comply with Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rules 13a-1 and 13a-13 thereunder (the “Allegations”) by failing to file periodic reports since the Trust filed a Form 10-Q for the period ended September 30, 2015. The Commission seeks to determine whether it is necessary and appropriate for the protection of investors to suspend for a period not exceeding twelve months, or revoke, the registration of the Trust’s common shares registered pursuant to Section 12 of the Exchange Act.
The Trust expects to shortly engage in discussions with the Commission’s staff seeking to resolve the Administrative Proceeding without de-registration. However, there can be no assurance that the Trust will be able to avoid de-registration or how long the Administrative Proceeding may take to conclude.
Source:
https://ih.advfn.com/p.php?pid=nmona&article=78393704
It was all I could do to resist saying 'somebody knows something' when posting earlier re: todays' stunningly high volume.
Turns out somebody did know something...and they knew it before the closing bell...and hours before the 8-k was released. Imagine that!
As you say perhaps this will light a fire under Greenlaw.
2 weeks ago I called the IR asking what the holdup was on getting the financials out and I was told that "the auditing had stopped during the SEC investigation ..but now that it was over UDF could resume work [on the financials] again". In other words they were putting the blame squarely on the shoulders of the SEC.
In light of this action taken today by the SEC I can't help but think they got wind that they were being blamed and took exception to it. ?? It wouldn't surprise me in the least.
Lets' hope this jolts Greenlaw & Co into action.
I'm not a TA type investor/trader and rarely if ever post technical data (especially on event driven stocks such as UDFI) but unusually high volume on no known news is hard to ignore.
We're presently sitting on 225,168 shares traded..or put another way 1,365% over the 65 day average.
Marker:
United Development F (UDFI)
4.75 up 0.15 (3.26%)
Volume: 225,168
Take 30 minutes and go back a year or so...read the past posts. I'm confident you will find answers to your questions (and more) with the excellent DD, ideas and opinions posted on this no-nonsense board. You will be completely up to speed guaranteed. If after that you still have questions - fire away. Best of luck!
Marker:
United Development F (UDFI)
$4.53 down -0.07 (-1.52%)
Volume: 3,505
According to the August of 2016 article entitled - Oil drillers making big-money plays in still profitable Permian Basin
[....]
Quote:
"Assets in the Permian, where drilling is still profitable at current prices..."
[....]
Source:
https://www.dallasnews.com/business/energy/2016/08/16/oil-drillers-making-big-money-plays-still-profitable-permian-basin
So what were the current prices for WTI crude mid-August of 2016?
Here is a snap-shot picture for that week:
08/19/16 $48.52
08/18/16 $48.22
08/17/16 $46.79
08/16/16 $46.58
08/15/16 $45.74
Average - $47.17 per bbl.
By comparison here are the late Sept. 2018 WTI prices;
09/28/18 $73.25
09/27/18 $72.12
09/26/18 $71.57
09/25/18 $72.28
09/24/18 $72.08
Average - $72.26 per bbl.
This represents on average a $25.09 per barrel increase, or a whopping 53.26%, since this article was put out.
Bottom line - If they were profitable at $47...they're in hog heaven at $72!
The Permian is arguably not only the best place to invest when it comes to domestic energy but perhaps the only place.
Marker:
Concho Resources Inc (CXO)
$154.29 up 1.54 (1.01%)
Volume: 948,677
Baker Hughes latest rig count as of Sept. 21 Sept 2018 was 1,053 which is -2 < last week on 14 Sept 2018 however it constitutes a +118 rig addition over this time 1 year ago.
Marker:
Hi-Crush Partners LP (HCLP)
$11.30 down -0.85 (-7.00%)
Volume: 3,536,147
Marker:
Delta Air Lines, Inc (DAL)
$60.15 up 2.02 (3.47%)
Volume: 4,506,968
Marker:
SVB Financial Grp. (SIVB)
$326.65 up 7.43 (2.33%)
Volume: 80,478
Effective October 1, 2018, Axos Financial will begin trading on NYSE under new ticker symbol “AX”
BofI Holding, Inc. (NASDAQ: BOFI) (the “Company”), parent of BofI Federal Bank, announced that effective today, its new corporate name is Axos Financial, Inc. (“Axos Financial”). Additionally, BofI Federal Bank will become Axos Bank on October 1, 2018.
“Our new brand better reflects the diversity of our existing businesses and aligns more closely with our strategic vision,” explained Gregory Garrabrants, President and Chief Executive Officer of Axos Financial. “As a technology-driven financial services company providing a diverse set of innovative products and services to personal, business and institutional clients nationwide, Axos Bank will continue to focus on the utilization of technology to evolve the banking experience.”
The Company also announced the pending transfer of its stock exchange listing of common stock and subordinated notes from the NASDAQ Global Select Market (“NASDAQ”) to the New York Stock Exchange (“NYSE”). Axos Financial expects to begin trading on NYSE on October 1, 2018, under the new ticker symbol “AX” for its common stock and “AXO” for its subordinated notes. The Company’s common stock and subordinated notes are expected to continue to trade on NASDAQ until the close of the market on September 28, 2018.
[....]
Source:
http://ih.advfn.com/p.php?pid=nmona&article=78241875
Marke:
Axos Finl (BOFI)
$35.56 down -1.1 (-3.00%)
Volume: 161,948
Marker:
Seritage Growth Prop (SRG)
$50.88 down -0.1 (-0.20%)
Volume: 14,134
Marker:
Gastar Exploration I (GSTC)
0.027 down -0.028 (-50.91%)
Volume: 16,120,043
*The fire sale is on in a major way today. I hold no shares at this time.
Significant buy this morning of 25,450 shares in one big bite and L2 showing an additional bid for 17,060 more on deck.
Marker:
Blue Dolphin Energy (BDCO)
$1.00 0.0 (0.00%)
Volume: 25,450
*Monitoring only. I do not hold any class securities for Gastar Exploration Inc.
Marker:
Gastar Exploration I (GST-B)
$3.00 0.0 (0.00%)
Volume: 0
*Monitoring only. I hold no common nor preferred class shares of Gastar Exploration Inc.
Marker:
Gastar Exploration 8 (GST-A)
$3.01 0.0 (0.00%)
Volume: 0
*Monitoring only. I hold no common nor preferred class shares of Gastar Exploration Inc.
Sep 6, 2018
Gastar Exploration Announces Suspension of Trading on the NYSE American Exchange and Expected Commencement of Over-the-Counter Trading
HOUSTON, Sept. 6, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar") today announced that it received notification from the NYSE American LLC ("NYSE") that the NYSE has suspended trading of the Company's common stock on the exchange due to its abnormally low trading price.
[....]
Source:
http://ir.gastar.com/news-releases/news-release-details/gastar-exploration-announces-suspension-trading-nyse-american
Marker:
Gastar Exploration I (GSTC)
$0.043 down -0.047 (-52.22%)
Volume: 3,055,662
*GST is circling the drain
Triad Guaranty Inc. (TGIC)
0.1151 down -0.1449 (-55.73%)
Volume: 11,392
*finally moving in the right direction. Needs to drop another 80% from here.