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Nordic American Tankers Limited Message Board

msnapp82 2 posts  |  Last Activity: Jan 3, 2015 1:30 PM Member since: Oct 7, 2010
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  • Reply to

    If oil keeps dropping.........

    by divikmi Jan 2, 2015 8:46 PM
    msnapp82 msnapp82 Jan 3, 2015 1:30 PM Flag

    Certainly possible, but not likely when you consider that KMI does not earn revenue based on the price of oil, but rather on the amount of oil and other products which flow through their pipelines. If for example you feel the price of oil might spur more consumption of gasoline, then a decline in the price of oil is not a negative event for KMI.

    Apparently much if the industry tends to agree that the price of oil is not a grave concern for KMI, as KMI is sitting atop a backlog of 18 billion in planned expansion. And that's as of late 2014. You can expect more projects coming forward.

    Last, it went without much notice, but on December 31 the USA more or less opened up the crude export market. All it takes is marginally processed crude to qualify for export. No only does KMI own the pipelines that will bring that crude to the mini refiners, KMI owns the tankers that can ship that slightly refined product.

  • Reply to

    Sure is strange

    by alwayshoping Jan 2, 2015 4:22 PM
    msnapp82 msnapp82 Jan 3, 2015 1:11 PM Flag

    straight4 - I have never found book value to be of any use, the exception being those companies with assets that exceed book value (i.e., real estate). In most cases, book value is meaningless and the assets are in reality worth less than book.

    More important to Vicon in my view is restoring the revenue they once had. Vicon slipped into a spiral revenue wise, but the customers are still there. It's a matter of getting those customers engaged again, with new offerings and a new business model.

    The old Vicon was proprietary and oddly, they felt it was a good thing. The new CEO has demolished that mindset and is focusing on open source. The CEO's insistence on open source, and his open market purchases, are a clear signal he is changing the company from top to bottom and willing to risk his own capital. Had someone come in and said "business as usual" I think Vicon would have failed. They might still fail, but it won't be for lack of trying, the guy they got is exactly the type of person they needed at the top.

    The old Vicon had leadership but was stuck in a bad business model, and IQinVision had very little in terms of true leadership but had some excellent products.

    Over the years I've invested in some small companies, and it's not a stretch to think of Vicon trading in the teens if the company can push the revenue higher. 100 million would be a good goal, for now. If I'm not mistaken, the combined companies had revenue of 50 million. If Vicon can re-engage their existing client base, that annual revenue can ramp quickly, because the customers are already there, they just need a reason to buy.

NAT
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