1. They have $2.5billion in debt on project that will not be used as they built for importing lng. So this is basically worthless.
2. With $2.5 billion in debt they will have to build a construction project for three years with no earnings that will cost another $2billion for the first two trains and another $2billion for the second two trains.
3. Total up all the expenditures and debt and interest payments on the debt.
I see big stock dilution coming. I do not see what lenders will loan them the billions of dollars in this economy.
I believe the future is going to be some large capitalized hedge funds that will come out of the woodwork in the next year or two to build projects that are well capitalized.
Cheniere is not capitalized for a multi billion dollar project. Borrowing funds today is very difficult unless you have great collateral. You almost have to have the assets on the balance sheet that are easily converted to cash if you want to borrow today. Lenders want to lend to the best creditors.
Cheniere is junk bond status. If you had $2-4billion would you rather loan it to Exxon Mobil to build an LNG facility or a Cheniere? I'm not saying Exxon is going to build a plant. Most major oil and gas companies no longer even want their old refineries.
I'm not saying Cheniere is not going to get a permit to export. I'm saying start up projects whether it is a nuclear plant, refinery, LNG facility or whatever, has been very difficult to finance is the post 2008 financial market place.
Whether long or short is not the concern:
Don’t choose sides.
The volatility of the LNG is the play.
The longs are hopeful of a sky rocket.
The shorts conjure up plausible arguments utilizing a variety of data from different metrics.
The stagnation point of a run on a stock is what to look for.
Either way that probably won’t happen until the high teens.
Money is being made on both sides.
LNG is environmentally friendly.
Enjoy the ride up and down
Just my opinion
Don't underestimate the ability of people to put their money in pie in the sky ideas
This whole idea is silly. The idea you are going to liquify LNG and export it thousonds of miles offshore at a profit. This reminds me of another company. Anyone remember GFET. Alternative energy company gonna make million on converting celulose to ethonol.
Good luck longs you can use the stock cetificates for TP:(
I thought LNG just got the Permit approved about a month ago. That's why I bought in and sold once it ZOOMED to $8.50. That's all the permit was worth.
You are right! There are no LNG Conversion plants in the area to supply liquid gas for EXPORT. It will take 36 to 40 mos to build the 4 Gas Trains (Each Liquidfaction Plant is called a "Train")
In the next 40 months LNG will have almost ZERO Earnings. Investors need to realize this stock is very speculative at these prices.