In one of the recent KMP write-ups someone mentioned that the maintenance issues have already been raised in the past. This sounds like a young analyst who got some attention with LINE and wants to keep the momentum going by reciting previously raised issues as if it's his own original idea. You see this with Chinese stocks a lot. Everybody knows that 90% of Chinese companies listed on US exchanges are fraudulent to some degree, yet you will have young analysts young generic reports about staying out of China, as if nobody knew about the dangers. People invest in KMP for the dividend. As long as they can maintain the dividend it shouldn't collapse. If they continue growing the dividend then the pps should increase. 6-7% dividend is the norm for KMP.
But Kevin Chen said it was a good company (sarcasm). Did you notice that Kevin Chen no longer goes by "Kevin Chen" on Seeking Alpha? His pic and name have been changed to MaxSoar or whoever it was he worked for. Toups should follow his example.
I see a P/E below 4. Is this the actual P/E or does this need to be adjusted? From what I understand PPS is affected more by distribution than P/E, but still, it looks enticing.
While the update on the website doesn't mean everything will work out, it's certainly not a bad thing, assuming they are honestly trying to get the acquisition completed. I think it's worth taking a bite here, just not too big of a bite.
Well, when LPH was above $2 and in free-fall, Bradford was proclaiming that only an idiot would sell while Zester called a really low bottom, $1.10 or something. Maybe he'll be right again.
At this point, I also don't see the point in condemning the coup. People are going to starve to death. I don't think the US will do anything. No oil in Mali. The Tuareg rebellion was a bad idea. There are now reports that AQIM or its sympathizers are going door to door in Timbuktu and telling people that Sharia law is now in place. The Tuaregs aren't the type that like to be told what to do, and they are not interested in imposing religion on people. Now I think they will have a much bigger problem than not having an independent homeland. They have inadvertantly empowered something much worse than the Malian authorities (not sure how bad they were actually treated). Not sure what will become of the rest of the country. The Tuaregs likely won't be interested, but their AQIM sympathizing counterparts will likely try to spread south.
Not likely. Conflict between the Tuaregs and the Malian government has been ongoing since the 60's. In the early 90's Mali made concessions.
It seems they have taken Gao, or at least the Mali army has retreated. Timbuktu will likely be the next target.
How did you know that this article http://seekingalpha.com/article/317596-happy-accidents-in-oil-country would appear today?
Longwei Petroleum Provides Corporate Update
1/4/2012 9:15:00 AM
TAIYUAN CITY, China , Jan. 4, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today provided a year-end 2011 corporate update.
"We are pleased with our strong operating results year-to-date," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Our revenues for the first five months of our fiscal year ending June 30, 2012 are up 6.1% year-over-year to $204.8 million . We are also on track to close on our third facility as soon as possible. We are working with the seller and local officials to finalize the asset transfer."
To date Longwei has paid a RMB 550 million (approximately $86.3 million USD ) deposit toward the total purchase price of RMB 700 million (approximately $109.9 million USD ) for the purchase of the assets of Huajie Petroleum, a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity. "With the closing of our third facility, Longwei becomes the dominant private storage facility operator in the central region of the PRC," stated Mr. Cai. "We expect continued strong demand and have become more selective in our customer base to maintain our profit margins."
" China 's economy is still expected to generate significantly more growth in petroleum consumption [in 2012] than any other major market in the world," according to IHS CERA (Cambridge Energy Research Associates), a leading global energy research and advisory firm. "In particular, we expect demand for diesel and gasoline - the two key oil products in China - to remain relatively strong and underpin the country's overall oil demand growth," IHS CERA forecasts. "Power shortages are also expected to worsen and could lead to significant incremental diesel demand."
"We believe the Company is well positioned to capitalize on the continued rising demand for petroleum products in the PRC, and we believe the addition of the new facility assets will further accelerate our revenue and earnings growth in fiscal 2012," stated Michael Toups, CFO of Longwei. "We are also working to improve our level of transparency with our shareholders to keep them informed on our corporate developments during the year."