Doesn't anyone find it interesting that the stock went up soon after the warrants were issued to Morgan? I believe that this stock is being accumulated so that Morgan can cash in big on this.
Also, correct me if I'm wrong but Morgan can't convert the warrants until March 1st at the soonest. Call me a conspiracy theorist but I think we're going much higher from here so they can get richer. That's a good thing if you're long! I'm sure that Morgan doesn't want worthless warrants.
TMG price must rise significantly over the $6.60 price in order for them to make money. If it rises to say $10.00, then they make $3.40/share on 5.5 million shares, which amounts to almost $19 million. It would seem that Morgan has a strong incentive to help TMG with the MLP IPO, source acquisitions and perhaps be an underwriter. Morgan also have Canterra which may have assets that could be contributed to TMG.
Just taking a first look here and enjoyed your thought provoking MLP analysis. Does the supply agreement with Morgan Stanley Capital eliminate TMG's need to hedge? TMG took significant hedge losses and costs, according to the Dec. 2003 presentation to the Wachovia conference on the TMG website. I'm surprised an outdated presentation is all that is available from TMG but so be it?
Whose refinery in Mississippi do they have an interest in and how big is the interest? The refiners are minting money right now especially if they handle heavy crude. An interesting suite of assets to try to understand here. Thanks.