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Charles A. Smith

 
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  • Fracking discounts seen cutting profits at oil service companies by $3B-plus [View news story]
    "How about lowering proppant prices?"

    Getting priced in...SLCA, EMES and HCLP down an average of 37% in the past two weeks.
    Dec 9, 2014. 10:00 PM | Likes Like |Link to Comment
  • Take Your Head Out Of The Sand: Elevated Downside Risk For High-Flying Proppant Producers [View article]
    "This scenario implies downside of 50 to 60 percent for Emerge Energy Services, 50 percent for Hi-Crush Partners and 40 percent for U.S. Silica."

    Great call. Now that EMES is down 41%, SLCA is down 37% and HCLP is down 33% from the day this was written, what say you now?
    Dec 8, 2014. 05:20 PM | Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    "With the tremendous amount of new initiatives underway, it seems only logical and smart to implement a strategy to simplify and streamline the organization."

    Not the real story, or reason for the deal. Rich Kinder recognized that financing a growth industry with investment vehicles (MLPs) that pay out nearly all their earnings is a terrible waste. Why pay out huge amounts of capital to unit holders only to raise it right back again while paying Wall Street a huge toll every time? Way more efficient (AND higher ROC) to earn it and invest it rather than earning it, paying it out and then raising it again.
    Nov 19, 2014. 07:50 AM | 20 Likes Like |Link to Comment
  • Good Riddance To QE: It Was Just Plain Financial Fraud [View article]
    "Just how did that help bankers ??"

    FDIC reports show that quarterly aggregate funding costs for U.S. banks (net interest expense) has fallen from $64 billion in the third quarter of 2008 (the quarter QE began) to under $12 billion today. I'm not sure how you can argue that an 81% reduction in funding costs courtesy of the Fed wasn't just a tad "helpful" for bankers.
    Nov 13, 2014. 09:31 AM | 1 Like Like |Link to Comment
  • Good Riddance To QE: It Was Just Plain Financial Fraud [View article]
    "...or in a world where all boats rise when the tide swells across the horizon."

    How did QE (tranches 2 and 3 especially) contribute to all boats rising? If anything, it exacerbated existing income and asset inequality.
    Nov 13, 2014. 07:55 AM | 3 Likes Like |Link to Comment
  • Good Riddance To QE: It Was Just Plain Financial Fraud [View article]
    Then why refer to it with the arcane "QE"? Why not simply call it "money printing for public purposes"?
    Nov 12, 2014. 12:18 PM | 1 Like Like |Link to Comment
  • Good Riddance To QE: It Was Just Plain Financial Fraud [View article]
    "ALL MP ops to lower rates involve creating money "out of thin air"."

    Granted. But the DEGREE to which current Fed policymakers are willing to apply their version of the mechanism in service of ailing banks and entitled bureaucrats is historically unprecedented and stunning. The market can create money, driven by the supply and demand impulses of millions of people acting freely and in their own interest. Or a small group of academic do-gooders can create money for their own (supposedly public interested) purposes. The first process is messy, volatile and leaves winners and losers. But it creates GROWTH, sometimes very dynamic growth. The second process dampens market volatility, but relegates real growth to a minor role. The evidence of the last 6 years is clear. There is no creation without a certain amount of destruction.
    Nov 12, 2014. 09:27 AM | 2 Likes Like |Link to Comment
  • Good Riddance To QE: It Was Just Plain Financial Fraud [View article]
    "...the false prices which result from massive monetization do not stay within the canyons of Wall Street or even the corporate business sector. In effect, they ride the Amtrak to Washington where they also deceive politicians about the true cost of carrying the public debt."

    The Axis of Artifice:

    http://seekingalpha.co...
    Nov 12, 2014. 09:10 AM | Likes Like |Link to Comment
  • Zoetis jumps 6% on report of Ackman stake [View news story]
    Like a shark, VRX must keep moving forward (doing deals) to survive.
    Nov 11, 2014. 04:58 PM | 2 Likes Like |Link to Comment
  • Chip stocks rally after Microchip talks of short downturn [View news story]
    In the words of the great Rosanne Roseannadanna:

    Nevermind.
    Oct 31, 2014. 12:05 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Is Prepared To Control The Oil Industry For Its Own Good [View article]
    I should have clarified. Coal is dead not because solar will displace it, but because nat gas will displace it, likely over the next 15 years. Once storage tech is perfected, solar will in turn displace a good portion of gas demand, likely in the period 2030 to 2050.
    Oct 23, 2014. 03:13 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Is Prepared To Control The Oil Industry For Its Own Good [View article]
    1. One firm's growth can result from an entire industry's consolidation. What you're suggesting for KMI sounds more like that than broad, industrywide growth.
    2. The corporate structure (instead of the distribution-heavy MLP) makes way more sense. In a growth business, paying out 100% of earnings just so you can raise it again in the marketplace is terribly inefficient. Kinder has decided (rightly) to cut out the bankers and fund a good portion of the growth with earnings instead.
    3. I don't think Rich Kinder sees himself as another J.D. Rockefeller.
    4. Solar just might displace a very large portion of the demand for fossil fuels in the next 10 years. Coal is dead as an electricity generator.
    Oct 23, 2014. 02:02 PM | Likes Like |Link to Comment
  • Boeing - Solid Quarter Driven By Continued Commercial Growth [View article]
    What? Not a word on the deferred cost issues with the 787 (that just so happened to tank the stock today)? This number crossed $25 billion in Q3, and management said they could go another $1 billion higher. Readers deserve at least an explanation of these issues, including the fact that current earnings on this program are pretty much whatever management wants them to be.
    Oct 22, 2014. 09:39 PM | Likes Like |Link to Comment
  • Microchip Technology: CEO Flubs A Warning Announcement [View article]
    Today's report from XLNX reinforces the point that Sanghi was smoking something.
    Oct 16, 2014. 05:11 PM | 1 Like Like |Link to Comment
  • Opposition builds against TransCanada’s Energy East project [View news story]
    The greens start the anti-growth engine...vested interests pile on.
    Oct 16, 2014. 12:22 PM | 3 Likes Like |Link to Comment
COMMENTS STATS
1,133 Comments
2,270 Likes