"The airline industry is set to reap the benefits of lower oil prices, which could fall to as low as $30 a barrel, according to the chief executive of Emirates Airline.
"I've always thought personally it go well down to 30 again, but we'll see," Tim Clark, president and CEO of Emirates Airline, told CNBC in an exclusive interview.
"I've always said the realistic price for out-of-ground: $70. Should never, ever have been above that."
Dec. 15, 2014
"U.S. oil drillers last week idled the most rigs in almost two years as crude tumbled below $60 a barrel. Producers including ConocoPhillips (COP) have curbed spending, and the number of rigs is declining from a record 1,609, threatening to slow the shale-drilling boom that has propelled U.S. production to the highest level in three decades."
One poster here has posited that the CEO and other officers are buying in order to dry up available shares to short, thus making it harder to short. That doesn't stop people who own NES outright and are jumping ship.
Insider buying of NES is no indicator at all because no one really knows how low oil prices will go. If oil heads into the low 50s, NES is toast. They already have massive debt of over $500 million and almost no cash. The Q4 earnings report will be a catastrophe, that is if they don't file for bankruptcy before that.
These layoffs are not because of the merger.
Here's what Halliburton had to say about the layoffs:
"The oil services company is in the midst of finalizing the acquisition of Baker Hughes, which agreed to be bought by Halliburton in November in a $34.6 billion deal.
Halliburton said news of the layoffs was not related to the acquisition.
"No layoffs have occurred or are presently planned as a result of the pending Baker Hughes acquisition," Mayes said.
Halliburton (NYSE:HAL) has announced that it is laying off about 1,000 employees across multiple regions in the Eastern Hemisphere, effective immediately. The Middle East "seems to be the nexus of our current woes in terms of dropping prices and production," CFO Mark McCollum told investors on Wednesday.
"It's (oil) actually much weaker than the futures markets indicate. This is true for crude oil, and it's true for gasoline. There's a little bit of a desperation in the crude market," said Kloza. "The Canadian crude, if you go into the oil sands, is in the $30s, and you talk about Western Canadian Select heavy crude upgrade that comes out of Canada, it's at $41/$42 a barrel. Bakken is probably about $54."
Kloza said some there's talk that Venezuelan heavy crude is seeing prices $20 to $22 less than Brent, the international benchmark. Brent futures were at $63.20 per barrel late Thursday.
"In the actual physical market, oil's fallen by even more than the futures market. That's a telling sign, and it's telling me that this isn't over yet. This isn't the bottoming process. The physical market turns before the futures," he said."
My prediction? Bankruptcy for NES in March, 2015
"The OPEC's contentious decision to keep its production target, leaving the market with a supply glut, could trigger a wave of debt defaults by U.S. shale oil producers, warn analysts.
The 12-member oil cartel on Thursday said it would stick to its output target of 30 million barrels a day, triggering a sharp decline in oil prices, with U.S. crude futures tumbling nearly $6 to $67.75 on Friday - the lowest since May 2010.
Neil Beveridge, senior oil analyst at Sanford C. Bernstein, told CNBC the plunge in oil prices raises the risk of bankruptcy for U.S. shale players."
Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, WHILE IN POSSESSION OF MATERIAL, NONPUBLIC INFORMATION ABOUT THE SECURITY.
Examples of insider trading cases that have been brought by the SEC are cases against:
•Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments.
Let's look at this again: "Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments."
The CEO KNEW that the XTO pipeline deal would go through and bought NES stock at $8 when the rest of us had no idea what was happening with the deal.
I've been trading for 30 years and I've never seen such an obvious case of insider trading.
Now that Halliburton has Baker Hughes, NES is of no use to Halliburton.
Halliburton and Baker Hughes are now NES's competitors.
Guess who's going to win that fight?
A pitiful attempt to prop up a loser. Now if the CEO had bought 500,000 shares, that might make a statement. He already owns 10 million shares so another half million would have been easy.
Except for the AFFO "error" and cover up, unencumbered assets should be the same as before the AFFO issue. Given that ARCP was trading above $12 for many months, it makes sense that ARCP should be trading at or near $12 assuming you believe that the 2013 and 2014 financial statements have no other issues. Given the uncertainty, ARCP might stay in the $9-$10 range until January. There is also the 10% dividend to keep ARCP's stock price from falling further.
If the $13 Billion is unencumbered of even the bank line of credit, ARCP should be trading above $12 even with the 2013 and 2014 financials uncertainty.
There's no way NES will ever get out from under the $575 million debt load. Just declare bankruptcy now, screw the banks and get new financing. In the long run (about a year) it's the inevitable path for NES anyway.
From $549 million to $571 million.
There's no way this company will ever be profitable when every quarter they go backward by $22 million.
In Q3, they reported $2 million in cash. In Q4 they'll report that they have no cash, just goodwill.
An analyst on the conference call asked the idiot CEO if he could provide a more quantitative picture of the company's prospect going forward. The CEO said no, we only provide qualitative forecasts. Gee, I wonder why?