The buying of shares by Cantor Fitzgerald is a jaundice deal. Why would Cantor consistently put out strong buy recommendations for URG of over $2.00 per share and then arrange a deal to buy shares for the dirt cheap price of .50 cents. It seems that both the company and Cantor were willing to put shareholders at a disadvantage. The positive take on this deal is that .50 cents looks like a bargain basement price and accumulation of shares at current prices are excellent entry points. The flip side is that the company and Cantor manipulated those already holding shares.
True, there is an humongous oversupply of natural gas. Natural gas does not follow supply and demand economics.
Just like the housing market bubble, the thinking of many in public is that people do not like thinking about negative future events, so they subconsciously believe that they will not happen. That was the prevailing mentality during the housing bubble. The same is true for the climate change deniers. The fossil fuel industry in conjunction with countries like Saudi Arabia have spent billions of dollars influencing politicians and using the media to misinform and deny climate change. The underlying reason is obvious; climate change represents a move away from fossil fuels to lower carbon energies. Some of the smartest people in the world have been telling us for years that the ramifications of climate change will create an uncertain future. Just like the few during the housing bubble were criticized, those warning about climate change have the correct mentality.
It is over 20 degrees above normal for North Florida during the last 3 months. El Nino is accentuating climate change. The new norm is already here. OPEC and the oil produces know that their greatest enemy is climate change. They are not going to settle for low prices much longer. I actually expect oil prices to skyrocket to new highs in the next few years as the ramification of climate change cause social chaos.
Stocks with low institutional ownership typically gyrate to extreme overvalues and undervalues. WPRT is no exception. The oil conglomerates are getting closer to promoting natural gas as a low carbon alternative in the transportation sector; mainly because of the global movement to low carbon fuels.
The major oil conglomerates are ramping up oil exploration in non-OPEC regions of the world. Reading beneath the radar this implies that the oil giants are looking to disconnect from the dominating influences of OPEC. The Paris Climate Conference is basically a non event, since very few countries will adhere to the tenuous agreements. What will happen is that the educated will become more concerned as the geophysical ramifications of climate change become more dramatic. It will be the geophysical events that will cause more transitions to alternative than any political morass. OPEC is more concerned about the increasing use of alternatives than they are about seizing market share. OPEC knows that they must pump as much now, because the future will not bode well for high carbon fuels. The major idea come out of Paris that will likely take traction with many countries is that nuclear power will increase. In addition, the climate is warming, which overall reduces natural gas use for utilities. Thus, look for natural gas prices to be cheaper relative to other fossil fuels.
The breakup book value of Emcore is about $11.00 per share. Stocks trading below book value should be held on to until they reach at least their book value. By the time EMKR reaches $11.00; its book value may even be higher. Give or take about $1.00, so it is reasonable to expect EMKR to eventually reach between 10-12, but stocks are usually valued above book value. The salient point is that EMKR is undervalued at its current stock price.
The major reasons for the decline in CPST is that low oil and gas prices are putting pressure on the drilling industry to cut back. In addition, the company has the wrong pricing models for it turbines; it should be making sure that a profit is made when determining cost. Lastly, most investors have lost faith in the CEO; it appears that he and the board are running the company to keep their pay at the expense of shareholders. In essence, the company is poorly managed. The stock split simply enables short sellers to force it lower. The silver lining in all of these negatives is that CPST is fundamentally worth much more than the current stock price, but expect continued downward pressure until the above reasons begin to rectify themselves.