Funny, I was at my local mall Saturday. Kate Spade on one comer of a walk intersection and KORS on the other side. KORS was busy and had better customer traffic. I watched customers leave for around 20 minutes. Six bags left KORS and only two from Kate.
The cheaper the stock, the more they can buy. Shorts aren't going to run in a fortnight. It's a long war that has turned to the side of Ebix investors. I'm a long term investor and will remain so. Shorts have tried to destroy the company by lies, forced the company into a failed buyout, and now are trying to keep their underwater shorts from being real losses. One more major catalyst and their positions will be trash. Time is on a the side of longs and not the shorts. Patience is a virtue and greed isn't.
Right now natural gas sells for less than $3 per thousand cubic feet (or roughly a 1 million BTU). Light, sweet crude oil goes for around $60 a barrel. To equal the energy in one barrel of oil, you’d need roughly 6 million BTU (or 6,000 cubic feet) of natural gas. $3 X 6 = $18 per barrel equivalent. Burning CNG or even LNG would save big bucks. If I owned a fleet of diesel powered vehicles, I'd replace them. Budweiser replaced all 66 of its Huston heavy haulers a year plus ago even though none of those trucks needed replaced. Each truck averaged 140K miles per year. UPS and FedEx have been doing it over the last few years with their smaller truck fleets. UPS has over 400 CNG trucks in California alone. Over 80% of waste trucks are NG. There's close to 1700 refueling stations nationwide and counting. Pickens has built about half. NG fuel is coming with or without government help because of cost savings and to meet even more stringent EPA rules.
Interactive brokers shares to borrow went from 200K to 850K back down to 600K this morning. The rebate rate went up. Stayed at 600K most of the day and not touched. I just checked and they still have the 600K but they reduced the rebate rate part way back down. Shorts are trying to find a way out.
At The Street put out 9 stocks to sell. Most are energy with CHK on the list. Obviously an article to try to contain energy today with the news of record gas consumption.
Mercury and other heavy metal pollution regulations to be decided by the Supreme Court. EPA won 2 to 1 in the appeals court but coal took it to the Supreme Court and will be decided shortly. It's likely to be won by the EPA again. To make coal compliant, it would cost an estimated 9.5B dollars. Coal is dead, long live NG.
I agree with T Boone Pickens who says that NG will be at $3 before winter. Greater consumption this summer + lower rig count = less inventory and higher prices coming soon enough. At 87, he sees $8 within his lifetime.
Electric utilities can't meet demand. The buildings NG generators kicked in. People here are up in arms with their HOA over window air conditioners. Hottest and driest fourth weekend on record here in the Seattle area. We have some alternative energy but not that much and our dams are being destroyed for salmon. Need more NG plants for climate change.
Their history says that they should have announced by now. I ask: why has it changed? It could be that they are deciding on the size of the dividend or something more important, a bigger annoncement is coming that makes the dividend a moot point.
When hell freezes over. Heavily shorted stocks are usually a buy. Based on assets, CHK IS A BUY. shorts get trapped thinking themselves safe in numbers. But those numbers turn on them and kill any paper gains.
If you think oil and gas are too high, start walking. If you think NG is too high, chop some wood and make candles.
"Hedge funds — under the Managed Money heading in the Commodity Futures Trading Commission (CFTC) weekly Commitments of Traders report — dumped 3,154 short contracts last week and added to their long positions by 3,526 contracts. The movement reflects changes as of the August 25 settlement date. Managed money holds 245,238 long positions, compared with 156,004 short positions. Hedge funds cut their short positions for just the second time in seven weeks and resumed their usual roles as oil bulls."
I believe the article was published at the beginning of June and not months and months ago. Icahn is not a sit on his ace investor. When he's done loading up, his comments will go public. He's only privately consulting with Mr Lawler at present. I'd rather have Icahn with me than against me.
Just a few weeks ago he said. Oil will be $70 by year end and go higher next year. A couple of years from now $100 plus oil will happen. NG is the commodity for the USA future since the price will always remain below oil product pricing. But it will be over $3 by year end and go higher after that following oil prices. He wants to see ALL heavy trucks using it and wants the government to support its use too. Trucks use 2.9M barrels of diesel per day. He says the Saudis are full of it and are pumping their max at this point. They are having a hard time keeping up the pace. And since the oil minister stated that oil will never be $100 a day, Pickens must think he's full of it too. I personally think the oil minister is full of it. The Saudis need $100 oil just to balance their budget. Other OPEC nations don't have their surplus of cash and need it sooner. All OPEC nations keep their masses in check from oil profits.
My own 2 cents about NG. It is being used in fleet trucks and public busses at great cash savings. Railroads are using NG conversions kits to provide dual fuel for locomotives to meet EPA rules and reduce costs. GE now makes a diesel engine that meets today's rules but the EPA can further change them. Railroads use $9B per year in diesel fuel costs but could reduce them by as much as half using NG. New rules for trucks have just been passed. More NG truck conversions are likely to meet those rules.
I'm sure they contacted all the government agencies by now. It's all from the short play book. More scathing articles on seeking alpha to come. Ignore and buy in any short attack.
You won't see UN inspectors in Iran anytime soon. They are buying time. They have no intention to shutdown their nuclear program. You don't negotiate with fanatics. They'll lie to your face and do what they want.