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PENN OCTANE CP Message Board

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  • rrb1981 rrb1981 Feb 25, 2006 11:08 AM Flag

    question,if pocc is delisted, that mean

    You are absolutely braindead if you are dumb enough to fall for the hype that a few speculators have exuded about this company. Penn Octane will have virtually no operations to speak of, a money losing fuel resale bis that is miniscule, an MLP with no operations, a interim CEO, because the last management team defected (both Richter and Shore bailed) and under favorable terms where the BoD let them walk with plenty of perks (look into the history of loan forgivance, etc with this company). The people who post about LPG, oil and gas trends have no clue as to how this company makes money, why it was forced to sell its LPG operations in the first place (its largest customer is Pemex, and Valero built a 100 million dollar pipeline into Mexico a couple of years ago and effectively put POCC/RVEP out of business). This is a shell company that speculators are using, just like ABLE, MXC etc etc. What is the key driver to this companies growth, and I mean specific to the company, not oil price or gas price (again tell me how those help POCC when POCC has to buy LPG on the open market and resell it)??

    I patiently await a real reply, but not holding my breath!!!

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    • rrb1981:

      Your general tone is negative. The CEO retired not bailed. I find some of your statements incorrect.
      The pipe line will be completed mid 2006 and will deliver oil products.
      From Valero web site:
      Valero L.P. (NYSE: VLI), a mid-stream logistics partnership partially owned by Valero Energy Corp. (NYSE: VLO), has signed agreements with Pemex-Gas y Petroqu�mica B�sica and P.M.I.� Trading Limited (PMI). The project consists of constructing more than 110 miles of pipeline, and shipping oil products from Pemex�s assets in the Burgos Basin near Reynosa, Mexico, to Brownsville, Texas.
      In a separate transaction, Valero Marketing and Supply Company, a subsidiary of Valero Energy, has forged a five-year agreement with PMI to almost double the amount of liquefied petroleum gas (LPG) it currently supplies to PMI, to help serve the LPG demand in the northeastern part of that country.
      From POCC latest report:
      The energy industry is highly competitive. There is competition within the industries and also with other industries in supplying the energy and fuel needs of the industry and individual consumers. The Company competes with other companies including Valero, L.P. (Valero) in the sale or purchase of LPG and Fuel Products as well as the transportation of these products in the US and Mexican markets and employs all methods of competition which are lawful and appropriate for such purposes. A key component of the Company�s competitive position, particularly given the commodity-based nature of many of its products, is its ability to manage its expenses successfully, which requires continuous management focus on reducing unit costs and improving efficiency and its ability to secure unique opportunities for the purchase, sale and/or delivery methods of its products.
      Volume Sold 2005 2004 *

      Fuel Products (millions of gallons) 53.5 14.6
      Seems like a lot of oil to me.

      • 2 Replies to gas175k
      • I was asking all the right questions 18 months ago and nobody was listening. "What about the stub.." I asked for 6 months straight. Management could have easily enacted a 1 for 10 reverse split and kept POCC from this delisting issue after the RVEP spin off. I guessed RVEP would last 1 to 2 years, they paid 2 distributions and closed shop even faster than I thought.

        Dos Laredos killed them, as I mentioned about 1000 posts back. The game goes on.

      • I was refering to the Dos Laredos LPG pipeline that was built several years ago that started the issue.

        The CEO bailed, so it was in the form of retirement, the President resigned right after him. No sugar coating this one.

        My tone has been negative because these guys were not looking out for the shareholders but for themselves. They drew fat compensation in comparison to the companies size and when things got bad they bailed. Did you ever read the SEC documents about Richter's loose accounting when POCC was a shell company looking to invest in Russia? Pump and Dump artists are using this as a vehicle plain and simple.

    • RRB,
      Given all that you have to say about the assets of POCC and the competition, is TMG going to be able to do any better with the assets and against the competition once/if the deal gets done.

      I agree with you, when one sees a qualified opinion with a going concern issue from the auditors, as we have with POCC, cash from TMG is probably not an automatic cure. I haven't dug that deep, but I think POCC has a pretty substantial retained earnings deficit. I'm working for memory, but I think the book value of POCC (after cash from TMG from the deal eliminates the retained earnings deficit) is right around 30 to 40 cents per share....funny, that is where the stock is right now.

      I can dig deeper if anyone cares......

      • 1 Reply to bigrhinoceros
      • I do not know what TMG's plans are. TMG has some assets that are adjacent to ones that they are buying from RVEP/POCC. Maybe they intend to intend to utilize the storage/pipeline in some other capacity other than LPG. I think that the size of TMG gives them a much better chance of succeeding than POCC did on its own.

        Yes, after POCC pays off its obligations and RVEP pay off its, it will be interesting to see what they intend to do. POCC still has the marketing and trading operations, but I doubt they can produce meaningful and sustainable earnings over any time period. As for RVEP, I thought I remembered them stating they would resume distributions, despite not having any assets other than cash, to me, I take that as liquidation.

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