Dakota Plains Holdings Inc (NYSEMKT:DAKP) announced to shareholders its strategic plans for the fiscal 2015 period. The company just successfully completes an unwinding of its joint ventures and also the refinancing of the company’s debt. They have formed a strategic committee that is comprised of an independent board of directors. They will oversee the strategic alternative plans on behalf of the company.
Dakota Plains Holdings Inc (NYSEMKT:DAKP) has also hired SunTrust Robinson Humphrey to help the strategic committee in the examination of alternatives that are available to the company. The intention is to maximize shareholder value in the future. They intend to continue to operate their Pioneer terminal but also divest much of its assets in an effort to streamline the company’s model. No firm plans or agreements have been noted on the process. It is focusing on the Pioneer Terminals Trans loading facility that is located in North Dakota.
Two new directors were added to the independent board with the intention of adding others down the line. Dakota Plains Holdings Inc (NYSEMKT:DAKP) continued for explain that the unwinding of its past division is important to the long-term solvency of the operation. They feel like they have firmed up their balance sheet and are poised to make the moves to ensure 2015 is a banner year. They intend to expand the Pioneer terminal and that will allow an addition of revenue to be developed also.
Creating Shareholder Value
Several times Dakota Plains Holdings Inc (NYSEMKT:DAKP) reaffirmed its intentions to improve shareholder value but with few revenue options other than the pioneer terminal they will need to find strategic alternatives to meet those goals. The company is a mid-stream energy operation. It will look to build upon the facility in North Dakota as limited capital resources prevent it from going with any acquisitions.
The stock is trading in a sideways pattern and is looking to attempt a break out. It needs to take out the $2.20 level and close above that in order to confirm the move higher.