Author Topic: SXC - SunCoke Energy  (Read 33859 times)

sampr01

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Re: SXC - SunCoke Energy
« Reply #90 on: September 27, 2016, 05:46:32 PM »

Coking #coal futures have nearly doubled since July

https://twitter.com/coalnewsmaster/status/780861986003382272


Picasso

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Re: SXC - SunCoke Energy
« Reply #91 on: October 27, 2016, 08:52:03 AM »
AKS has been diluting the crap out of their shareholders, including another offering last night.  Every one of their bonds is over par.  Quite a difference from the start of the year.

KJP

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Re: SXC - SunCoke Energy
« Reply #92 on: October 31, 2016, 06:28:19 AM »
SunCoke has made an offer to buyout all SXCP units for 1.65 SXC shares per SXCP unit.

Picasso

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Re: SXC - SunCoke Energy
« Reply #93 on: November 07, 2016, 10:47:33 AM »
awindenberger,

Any thoughts on holding the SXC shares you'll get post merger with SXCP?  I'm not a big fan of management or all these new ventures they might get into.  Dividend yield at SXC will be about 2% post merger which I'm guessing SXCP unitholders will dislike and sell into.  I'm also guessing SXC will look a lot different in a few years and I'm not willing to roll the dice on managements ability to handle that.  Their CMT purchase almost killed the company.

There's probably a bit more juice in the shares with the API 2 tailwind, but I think it makes sense to move on once shares/units go into long-term capital gains.

awindenberger

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Re: SXC - SunCoke Energy
« Reply #94 on: November 07, 2016, 02:18:53 PM »
awindenberger,

Any thoughts on holding the SXC shares you'll get post merger with SXCP?  I'm not a big fan of management or all these new ventures they might get into.  Dividend yield at SXC will be about 2% post merger which I'm guessing SXCP unitholders will dislike and sell into.  I'm also guessing SXC will look a lot different in a few years and I'm not willing to roll the dice on managements ability to handle that.  Their CMT purchase almost killed the company.

There's probably a bit more juice in the shares with the API 2 tailwind, but I think it makes sense to move on once shares/units go into long-term capital gains.

I must say the new projected dividend yield is not attractive. I wonder why they are setting it so low. At those levels its only $25M/annually, when they were paying out $110M or so at SXCP.

It was interesting reading the M&A Call transcript.Its pretty unusual to see multiple analysts speak out against a deal as strongly on this type of call.

It would have been nice if Andrew Midler had let Fritz finish explaining the thought process instead of interrupting him multiple times.

At this point I think I will sell my shares in January once I reach one year. It seems like we might not even see additional dividends after the Q3 one.

Any chance the conflicts committee decides the premium is not strong enough?

BTW, this reminds me of the WNR-NTI buyout from last year. WNR owned 60% of NTI and made an offer that NTI shareholders thought was too low, but a good portion of it was cash. When refining crack spreads fell in late 2015, suddenly NTI shareholders were insulated from the decline because they were going to get $15/share no matter what.

I happened to sell my NTI when the deal was announced in the mid-$20s. I was annoyed at first, but then WNR went from the high $30s to as low as $18/share, which turned out to be a great entry.

This could happen here too with SXC if we see a sell-off initially.

Picasso

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Re: SXC - SunCoke Energy
« Reply #95 on: November 07, 2016, 02:53:21 PM »
And since it's an MLP, the stock exchange is actually a taxable transaction.  I doubt they raise the offer for SXCP in the form of more SXC shares.

I agree, there will probably be an opportunity after the merger is done.  But for all intents and purposes this trade is basically done.

Grox

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Re: SXC - SunCoke Energy
« Reply #96 on: May 04, 2017, 10:30:04 AM »
Anyone still following?

Surprised that the conflicts committee stuck up for SXCP shareholders (deal never made sense for them, IMO).

SXC today trading at its net cash + SXCP holdings (so no value for IH, Jewell, Brazil).  Lots of carry cost, though, putting on a long SXC / short SXCP trade.  And this may be the right relative valuation, given the uncertainty of IH ...

given2invest

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Re: SXC - SunCoke Energy
« Reply #97 on: February 03, 2019, 07:41:33 AM »
Anyone still own SXC or SXCP?

I think good chance we see another merger announcement on Tuesday.  Can look at the comments in this thread to see why...near the bottom

https://seekingalpha.com/news/3426688-suncoke-energy-partners-declares-0_40-dividend


given2invest

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Re: SXC - SunCoke Energy
« Reply #98 on: February 07, 2019, 09:07:31 PM »
btw i nailed this...they consolidated SXC/SXCP on tuesday.   i think SXCP is super interesting here as "new SXC" is very cheap.  will write more about it tomorrow.