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  • Seadrill - The Worst Is Yet To Come [View article]
    Do they have a choice? Both the shipyards and the drillers have guns pointed at each others heads, and they will need each other again when the sun comes up. Also, we are talking players in the game who supercede companies; don't want to burn any bridges unnecessarily.

    That said, I wonder if SDRLs bonds might be a better play at maximum pessimism, as it gives the investor new equity in a reorganized company, were that to happen?
    Nov 20, 2015. 12:00 PM | 1 Like Like |Link to Comment
  • Could The Keystone XL Debacle Help Kinder Morgan? [View article]
    Yes, half of that would still be respectable, at 4.5%, but not sure how we get there. Just suspending new build outs would preserve the dividend at the present level, considering the carnage a dividend cut would do to the equity.

    Averaging in to KMI from 34 on down, and now considering WMB as a vehicle to eventually own ETE's C Corp ticker post merger. I've always admired the mid space for probably a decade, and this feels like a good place to start scaling in.
    Nov 15, 2015. 02:24 PM | 1 Like Like |Link to Comment
  • Kinder Morgan seeking talks with Trans Mountain opponents [View news story]
    From the BLM Solar plan:

    The Western Solar Plan established an initial set of 17 Solar Energy Zones, totaling
    about 285,000 acres of public lands, that will serve as priority areas for commercial-scale solar development.
    Since that time, two more zones have been added through regional planning processes. If fully built out, projects in the designated areas could produce as much as 23,700 megawatts of solar energy, enough to power approximately 7 million homes. The program also keeps the door open, on a case-by-case basis, for the possibility of carefully sited solar projects outside solar energy zones on about 19 million acres
    in "variance" areas.

    I think that these projects will have to be able to clear a rate set by Natgas, significantly lower, even in a projection to 2020.

    While I agree that coal is dead ( even railroad executives are planning for this), Natgas, and by extension, transportation companies like KMI, have legs.
    Nov 15, 2015. 01:12 PM | 1 Like Like |Link to Comment
  • Energy Transfer Hammered: What Are My Units Really Worth? [View article]
    It's a global market for energy, and it's a global problem (GCC), and without some global consensus as to what to do and trusted commitments, any one country is going to have a hard time implementing GCC solutions that involve sacrifice.

    In the US case, Natgas is probably a win-win, lower energy costs, less reliance and less military expenditures in volitile energy producing areas in the ME and Africa, abundant potential suplies, and GCC friendly dividends to boot.

    Not to talk my recent acquired book, the the mid space seems like a great place to be, based on the above reasoning, unless there's some significant financial land mines about to go off, which the market seems to believe based on market action in the equities.
    Nov 14, 2015. 12:25 PM | 1 Like Like |Link to Comment
  • Energy Transfer Hammered: What Are My Units Really Worth? [View article]
    There seems to be yet another shot across the fossil fuels bow with the Bernie Sanders and Jeff Merkley's recent proposal to leave oil and gas under federal lands off limits to extraction on GCC concerns.

    I have to echo others in saying maybe to oil, but like locking up Natgas seems counterproductive as its the most GCC friendly of all the fossil fuels, not to mention begging the question as to where the replacement will come for all the other fossil fuel energy that we use.

    The silver lining for investors in this space is that the proposal, were it to gain traction, would really firm up product pricing.
    Nov 13, 2015. 11:18 AM | 2 Likes Like |Link to Comment
  • Is Oil Black Gold Or Fool's Gold? We Think It's The Latter, Here's Why [View article]
    Averaging the price of oil over the last 150 years is not meaningful. Try the last 50 years...but that wouldn't make a very attractive headline, would it?
    Nov 12, 2015. 09:36 PM | 2 Likes Like |Link to Comment
  • OPEC Says Higher Oil Prices Are Coming, Big Oil Companies Say No [View article]
    Longer term, it appears that we may see some moves to restrict the drilling for oil and gas on federal lands(oil seems appropriate, gas seems short sighted as it's much more carbon friendly) on GCC concerns.

    While you may not agree with the moves to do so, keep in mind it will put a cap on how much oil and gas can be accessed, thereby driving pricing upward. This is a Senate bill ( ). While I don't expect it to be adopted in the near future, it, or something like it, probably will eventually be adopted.

    Yet another shot across the bow, another being XOM being investigated for trying to influence the public discussion of GCC with what senior management possibly knew as misinformation.

    We will continue to need fossil fuels for the foreseeable future, so these moves will just increase pricing; in effect a carbon tax by stealth; one that you can profit from.

    I believe that the future belongs to NatGas; those that produce it, those that transport it.
    Nov 12, 2015. 09:21 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan: Financially Sound But Growth Cannot Be Relied Upon [View article]
    I've yet to see it mentioned, but with KMI's wide moat, doesn't that give them leverage to raise prices? So in the case of Natgas, the product is selling for very low prices, so just pop the cost for transportation a bit to add a bit to the bottom line. Customers can hardly scream, as they are benefiting from all time low costs for the product, and KMI can easily make the case they need the revenue to fund operations.
    Nov 1, 2015. 09:51 PM | Likes Like |Link to Comment
  • Is Exxon Mobil About To Feel The Bern? [View article]
    Exactly. And yet I will probably contribute to Bernie's campaign, and simultaneously purchase those oil stocks as they are on sale.

    Global climate change is real.

    Moving away from high carbon fuels is gong to be a herculean process taking decades.

    In the meantime look to nat gas to replace coal (already in motion). Invest accordingly and profit.

    Not going to sit in the corner and cry loudly that it can't be happening and it's some sort elitist conspiracy.

    Take off the foil hats and grow up, for your portfolio's sake.
    Oct 24, 2015. 11:11 PM | Likes Like |Link to Comment
  • Is Exxon Mobil About To Feel The Bern? [View article]
    You guys love to live in a society based on scientific achievement, yet you won't accept the verdict from the same scientific community when it runs counter to what you percieve as your interests. What gives?
    Oct 24, 2015. 11:04 PM | 3 Likes Like |Link to Comment
  • Is Exxon Mobil About To Feel The Bern? [View article]
    Keep that head in the sand, pardner.

    BTW, long on the oil business, but with my eyes open.
    Oct 24, 2015. 11:01 PM | 1 Like Like |Link to Comment
  • The Federal Reserve Is 'Out Of Sync' With The Markets And With The World [View article]
    Or pulling the medicine prematurely will bring back the deflationary cancer...just like it did in 1937.

    You inflationistas are fond of saying the "its" not working. But compared to what? A roaring great depression? If so, it's working admirably.
    Oct 15, 2015. 12:03 PM | Likes Like |Link to Comment
  • Emerging Latin America's Economies And Their Development, Part I [View article]
    Good article for an area that is not in fashion with investors now. Which is how real money is made, and not coincidentally helping the people of these countries achieve their full economic potential.
    Oct 15, 2015. 11:33 AM | Likes Like |Link to Comment
  • Wal-Mart Just Told You It's A Value Trap [View article]
    But they have less and less purchasing power. So it doesn't matter what they want.
    Oct 15, 2015. 12:57 AM | Likes Like |Link to Comment
  • Wal-Mart Just Told You It's A Value Trap [View article]
    I shop of COST due to their emphasis on quality. I've avoided WMT, b/c their focus on price to the exclusion of all else.

    That said, I believe that is changing. They recently rebuilt one of their stores, right next to COST, so I went and checked it it out. I was impressed with the range of products (quite a bit of organic) and the high end physical plant. Not so much on the work force, but they seem to be making some serious investments there as well.

    I was one of those people that wouldn't be caught dead in a WMT store in the past, but my attitude is shifting.

    And good thing, b/c the lower middle class, WMTs core customer, in this country has hit the wall economically. (Ironically due to IT and globalization.)
    Oct 15, 2015. 12:30 AM | 1 Like Like |Link to Comment