I feel you are premature selling
but what do I know
PVA closed above its 13-day EMA on Monday. This signal tends to have bullish implications that the near-term trend of the stock is higher.
PVA closed above its 50-day EMA on Monday. This signal tends to have bullish implications that the near-term trend of the stock is higher.
New York (AFP) - Oil rebounded Wednesday, lifted by a government report showing a decline in US crude production and a deadly explosion and fire on an oil platform in the Gulf of Mexico.
The US benchmark, West Texas Intermediate for May delivery, surged $2.49 to close at $50.09 a barrel on the New York Mercantile Exchange, snapping a three-day losing streak.
Brent North Sea crude for delivery in May, the global benchmark, settled at $57.10 a barrel in London trade, an increase of $1.99 from Tuesday's closing level.
The latest Department of Energy weekly petroleum report, as expected, showed another increase in crude inventories to a new record high of 471.4 million barrels.
But it also revealed a slight decline in US crude production, by 36,000 million barrels per day, ending a long climb to record output levels that has contributed to the global supply glut.
The DoE report "was bearish fundamentally, with a fairly large build of inventory, but there were some bullish facts," said Bart Melek of TD Securities.
Adding to support for the market was an explosion and a fire on an offshore oil platform operated by Mexico's Pemex on Wednesday, killing at least four workers, injuring 16 and forcing 300 to be evacuated.
Firefighting vessels were battling the raging blaze as the oil market closed. Melek cited the incident as underpinning prices.
the developments in the Middle East have boosted crude oil futures. WTI crude is currently higher by 4.5% at $51.41/bbl
mperial Capital reiterated an Outperform rating and raised his price target on Rentech Nitrogen Partners (NYSE: RNF) to $22.00 (from $15.00), suggesting 46% upside.
"Our price target implies a 2.5% yield on the common unit distribution of $0.55 in 2014 and a 7.2% yield on our higher common unit distribution estimate for 2015 of $1.59 (previously $1.18)," analyst Matthew Farwell said.
The firm said the strategic alternatives process could realize significant trapped value. "On 2/17/15, RNF announced that its Board had initiated a process to explore and evaluate strategic alternatives for the partnership, which may include a sale, merger, or asset sales," Farwell commented. "Such an effort could realize significant upside for the RNF common units, in our view."
Strategic alternatives include:The East Dubuque asset is a Nitrogen plant with a locational advantage in the Eastern Corn Belt which benefits from higher relative margins (products from the Gulf must be shipped north at a cost of up to $100/t) and inexpensive natural gas feedstock (natural gas cost is about 45% of EBITDA)Relatively high-cost debt ($21mn) and high partnership expenses ($8mn) could be mitigated if RNF were merged or acquired by a larger companyAn above- market marketing and distribution contract with Agrium ($5mn/year) could be eliminated and allowed to expire in April 2016Separating East Dubuque from Pasadena would mitigate the overhang of the underperforming Pasadena asset and unlock favorable ammonia exposure that Pasadena, due to its consumption of 150kt of ammonia as a feedstock, had neutralizedSale of Rentech Nitrogen GP, wholly-owned by RTK, would allow for a potential restructuring of the RNP partnership to introduce Incentive Distribution Rights (IDRs); this would require consent from and payments to LP unit-holders