As you know Cheniene is building a large nat gat to LNG plant in Sabine. I know Cheniene has a small pipeline that can connect to other pipeline to receive the supply that will be needed in 2015-2016. Does
anyone know who owns the pipeline that they need to connect to? Boardwalk has a lot of pipeline around that area.
Pandora is toasted.
Sentiment: Strong Sell
"When a short squeeze occurs, a security or commodity is sold short but must be bought back at a later date to close out the short position. If there are too many short positions and not enough inventory when those positions come due, short-sellers are forced to buy the commodity or security at a higher price.
“The one thing I’ve learned in nearly 40 years of being in markets is when you get a short squeeze,” says Gartman, “pick a number – anything is possible.”
Gartman cites short squeezes in wheat and crude oil back in 2008 as recent examples of large short squeezes that caused those respective commodities to shoot up in price; West Texas Intermediate crude oil, for example, shot up from $100 per barrel to $125 during one such short squeeze, says Gartman. In June of 2008, it reached a record $143.68 per barrel.
“We’re seeing the same thing in natural gas right now,” says Gartman. “We got up to nearly $6.50 on the spot month. If you told me that it [will go] up to $10, I would not be surprised. When you get to short squeezes, anything – truly anything – is possible.”
Gartman believes the days of $2, $3, or even low-$4/Btu natural gas are behind us. “Once we get through the winter,” says Gartman, “we’re going to have less than one trillion cubic feet of nat gas in storage, which is a very, very tight circumstance. You could actually get down to 900 million feet of natural gas, which is just – I hate to use the word – an unconscionable and frightening level.”
Sentiment: Strong Buy
The stock was held by funds that needed to produce a yield. Those funds have sold out over past few days. Soon, you will see buys from hedge funds that want to take advantage of upside toward $20.
Sentiment: Strong Buy
soon when fund that have to sell for yield are done selling. No justification for the price to drop from high of 33 to this price.
Sentiment: Strong Buy
Deutsche Bank downgraded Boardwalk Pipeline Partners (NYSE: BWP) from Hold to Sell with a price target of $20.00 (from $27.00). The change follows new the company plans to cut its distribution rate to $0.40 from $2.13.
Analyst Curt Launer said, "This results from difficult business conditions for BWP in natural gas storage and pipelines. BWP has not raised its distribution in over 2 years and now is making the cut to maintain capital access in the debt markets for future growth projects."
"We have been concerned about BWP for some time in terms of the lack of growth and the pressure in margins but we did not expect the distribution cut partially because of potential fundamental improvements and partially because we thought its General Partner, Loews, would continue to provide support. Our initial reaction to the distribution cut and the comment that it will result in 4x distribution coverage is that BWP should be valued as if it could pay a distribution of $1.60 annually. Placing an 8% yield on this results in a target price of $20 per unit and we are reducing our rating to Sell with the cut from our previous TP of $27 to $20. We would expect the units to trade in the $17-20 per unit range pending additional information from the Conference call this morning and future developments including the status of the Bluegrass Pipeline," he added.
Yes, but there is also a possibility that they will actually have a higher income in 2015. Either from the market improvement in general and/or approval of blue grass. So your price of $16 does not take in to account any potential upside.
the company decided to keep the excess to spend on growth rather than issue shares at discount. If you take $1.6 amount and use 7% yield, you a 22.85 price. For 2015, the amount can be higher if certain events improve or lower if the fundamental deteriorate. I don't think it makes any sense to sell your shares at this price. Unless you are income fund and have no choice. In that case, the price will move to fair value over time.
No. Big part of the loss was one time goodwill right off. No investor cares about goodwill.
Yes. I am also not happy. I won't sell it today when others are planning to sell. There will be some funds that will sell today putting pressure on the stock price. I will hold and wait for more information before I decide to sell.
Pre-matket does not work too well for this stock. It will be down, but not 25%.