Eveyone knows that amrs jet fuel cannot compete in price or supply enough product as oil derived products.It will be used as a blend to make companies bring down carbon levels to meet epa carbon numbers.Amrs strenth is in its tech. to produce products that depend on certain supplies that are short in demand.This will make them very profitable in a world where demand excedes inventory.
The pps did'nt tank because of the Doj investigation,the Sec was told to keep a eye out for any manipulaion,the funds short were unable to take it down because they dont want to be on the Sec radar list.As for the investigation, sd can get hurt because most of the board members who let Ward have his way are still there.The company can be fined and in turn go after Ward and the board members,the long drawn out legal battle will hurt the pps.in the short term and put the buyout further down the road.
When I saw the price at 3.85,I sold my sd stock at 6.32 and put a buy order for hk at 3.85,but missed it as it jumped up,,now I'm forced to wait or buy it for alot more than it was trading.I'm on the fence what to do,any thoughts?
Last distribution we received $3.16 for ng and 93.29 for oil,hedges were at firesale prices,I'm glad they only drilled 10 wells,the next 27 should be at much higher prices if management has any clue as to what is going on.We should easily beat with new wells and higher prices and see $5 in dividends in the next 2 yrs even with the decline rates that eventually will steady.
Mcce,was it Repsol,heard they were at sd and loved the office space Ward built,besides Ward needs to sell the rest of his shares because of the Shell deal that will close in March.
Unlike SDT,SDR still has 27 more wells to drill.This is the best reason to hold,esp. since the price of ng drawn from these wells will fetch a much higher price.By the time all the 27 wells are drilled you would get back $5 in div. and although the decline rate is high eventually they level off and production becomes stable.In two yrs. you can sell it for $5 while making another $5 in div,thats $10 for $8 in two yrs.where else can you get that kind of return.