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!!!
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. Gary
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.