With insiders only owning 5% of Chenieres total stock, it is inevitable that a large holder of natural gas reserves will make a bid to buy-out this firm to lock in an outlet for their gas.
Hey... even if the debt is 2.5B... that's a big debt for this company. From what I read, they still need to build out another $2B-$3B in infrastructure. They won't be ramping up revenues for some years to come as exports won't begin till estimated 2015. Day to day operations will suck up tons of equity in the meantime. Cheniere will be lucky if they don't issue shares a number of times before 2015.
Longs better read this again:
The author of the article is short LNG, but perhaps for a good reason. I don't think the facts are being mis-represented.
The facts aren't being misrepresented at all. The author is spot on.
More LNG shares being issued is a must. They won't be "lucky" to not issue them, because without more shares sold, they simply don't have the money to exist much longer.
Let me all tell u a little something. First off this just may be the last drop!
Then what? LNG soars!! Take a good guess? while billionaire wall street investors are drooling over lng they are not going to invest one penny if theres any risk! They leave that to common investors like us! We are the ones that post all this garble in message boards that if and when they even read get a joust in there groin along with a smirk of greed in there heart! If any of u bought this when it was as low as $2.50 to $3 two years ago then u can bet quite the few fancy wall street regulars will cut the chase make a few calls forcing SEC to look away so they get the stock at there price like what happen just 3 weeks ago before LNG shot up to $6. Get an institutional investor to dump there shares then buy it back up. Theres no hype in LNG! LNG is for real! The export business is monster huge, The profit will tripple! and i am expecting there stock to shoot on up overboard into hundreds per share! But for now we have a lot of cripples holding onto there forts while they watch the real plowing into a better future for all! If your shocked at insiders selling then sell with them!
I call it $8 billion in dilution because who in their right mind would lend to these people...
The best shot at debt you got is convertible debt... and thats DILUTION.. death spiral financing
At least in the real world... your fantasies may be different
Except that the bulk of LNG sales are already tied up with BG and Union Fenosa. For companies that are active in the global LNG market, the structure of these agreements is not particularly attractive.
With these agreements, the project is basically just an infrastructure play. If you want a list of groups that would be interested in a buyout, look at those who invest in infrastructure.
It makes no sense.
If someone wanted LNG exporting plants, they could just build them for themselves. LNG has no plants, and no money to build plants. All LNG has is PLANS, not plants.
And why build via Cheniere? It's saddled with billions in debt from IMPORTING facilities that are not needed.