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Inergy, L.P. Message Board

balegoba1966 2 posts  |  Last Activity: Aug 7, 2015 1:25 PM Member since: Nov 15, 2005
  • balegoba1966 balegoba1966 Aug 7, 2015 1:25 PM Flag

    $7200/acre is about the average price of Ohio farmland. Surely Marcellus/Utica prospects are worth more than farmland. So this sounds like a distressed sale to me.

  • balegoba1966 by balegoba1966 Aug 2, 2015 6:23 PM Flag

    Overlooked in the focus on cheap steal prices, cheap boxes, etc., is a point that one of the TAL execs made on the conference call. Logistics is a very important aspect of the container business. Boxes can be bought cheaply, but the ability to position the boxes profitably is an equally important part of container leasing. The over-focus on the effects of cheap steel prices and the slowdown in Asia-Europe traffic probably account for most of the knee jerk reaction. If competitor boxes get stranded in far-away locations, a surplus of boxes won't mean much. Execution will produce winners and losers in this space, and I like TAL's savvy. They were smart enough to lock up long term leases in front of a cut-throat downturn and they are now well-positioned to wait for opportunities to pick off competitors that are in over their heads. TAL is a likely beneficiary of the current environment despite the stock price plummet.

    Sentiment: Buy