the question and answer period was most interesting. Especially questions about refinancing debt and how that would be accomplished. But first, this is the first time I heard Long term confidence in higher rates going forward. Haven't heard that in 3 years. Change of routes and possible storage boom in background both very good for profitablity. However its the financing that seems to be taking center stage and to address the question management was very vague but telling. We have already seen the debt for equity swap on a portion of this. They also, as I heard it, have 39 million more shares to sell at $1-00. Seems to me if you can reduce your debt by one third you should be able to refinance the remainder easily. I have always said Frontline had a small float compared to other tanker companies and this gave them flexiblity in expanding the float. Shares outstanding are a fraction of other Tanker companies. So dilution in my mind is the key. But not alot of dilution. The deal is who would want to refinance the remaining portion of the debt. To me that is "ALLOT" of people. Why?
to climb into bed with Fredrickson. Classic Fredrickson Quid pro quo all the way. .Take this riskier bet and I will give you this absolute winner over here. I am telling you its like an ant hill of financing out there for Fredrickson. Everyone wants in with him. I bet he gets a call an hour on the bonds. He owns the leases so that's already a done deal. Oil could stay low for an extended period. Many of the tankers may be used as storage and be taken off the market for transportation purposes further increasing rates. Is this the perfect storm for FRO?
Where is China putting all this oil at cheap prices. Do they have a Petro reserve like US. A big hole in the ground an old salt mine? The implication is they are doing the same thing they did with Copper in 2009
This would lead us to believe that UPIP is gearing for some hearty monetary rewards. And perhaps they are. Considering the extensiveness and relevancy of their litigation portfolio, and the high number of both patents-in-suit and defendants, UPIP does not need to win all of them or even a majority of them to see considerable gains in cash flow. All UPIP needs is a few wins, and the company all the sudden will operate at much higher levels.
Ok so we had 10 patent infringements that went to Markman against APPL. If just one of those make it through it will mean a shock to the upside. So Most might mean 6, 7 or even 8 but not all. I think people are being swindled into selling their stock. I listened to the conference call. It sounded strong and solid to me.
Who's fooling who here.
from a week ago. But even more interesting last time we got to this pps the price of Nat gas was $1.95 and oil was at about $88. Now count in we've increased our production levels significantly on both ends and are well hedged for the time being, it seems like we should be higher.
Natural gas futures rose to a one-month high in New York on forecasts for unusually cold weather that would stoke demand for the heating fuel and reduce stockpiles.
Forecasts turned colder over the weekend, with below-normal temperatures blanketing the eastern half of the U.S. from Nov. 8 through Nov. 17, according to MDA Weather Services in Gaithersburg, Maryland. By the end of last winter, the coldest since 1982 based on heating demand, gas inventories were a record 55 percent below average after beginning the season at a small surplus. Gas jumped to $6.493 per million British thermal units on Feb. 24, a five-year high.
“The forecasts are reinforcing the risk of what could happen to stockpiles during the winter,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Traders are a little leery, given what happened last year.”
Natural gas for December delivery rose 14 cents, or 3.6 percent, to $4.013 per million British thermal units at 11:38 a.m. on the New York Mercantile Exchange after climbing to $4.065, the highest intraday price since Oct. 1. Volume for all futures traded was 85 percent above the 100-day average. Prices dropped to $3.541 on Oct. 28, the lowest since last November, before ending the week up 6.9 percent. Gas is up 14 percent from a year ago.
“The market is rebalancing after reaching an 11-month low,” McGillian said. “It’s inevitable that traders on the short side of the market would start to get cold feet as it gets closer to winter.”
I want to thank Goldman for saying all this time oil was going to $150 and now once it's cratered lopping their price in half. Even Cramer this morning said the guy was an idiot at Goldman. To me this is the best contrarian signal we could have received. Whatever Goldman says do the opposite. We must have hit bottom.
Also did I hear Cramer say this morning Saudis are secretly pulling back on production of oil. Now that they shorted the market down its time to go long. They said we'd e back to $100 per barrel by the end of the year.
With the shoulder season almost over now is not the time to sell ERF.
Just like Zacks. They don't take into consideration the time of year. We are heading out of the shoulder season and prices should elevate going into the end of the year.
We are not going to go into winter with anywhere near a full tank. ERF makes big profit off Nat gas. This is wher we usually start going up. We will see
The dollar has been the culprit. Yes we have good supply but really over the last 5 weeks we still are at a minus in build even with a 5 million build today. We are now going out of the shoulder period and usually you will see a move up in ERF starting after the 10th of October on bets for weather. That usually lasts until late November or early December when it can go higher or lower depending on forecasts. Weather, Geo political, Saudis all wild cards to further upside. Terrorists looking to damage infrastructure somewhere.
This is what I was pointing out. Well hedged during this temporary downtown. Nat gas much higher than one year ago too. That's where the profits for this company are anyway.