2-cents

25 Comments

    • Interdependence and This Crisis [view article]
      Thank you Americans for rescuing the bankers and forego your medicare and pensions programs. I love your priorities. Sep 22 09:08 PM
    • Fed Bailout Will Create Weaker Dollar, Higher Commodity Prices [view article]
      Thank you Americans. Sep 22 09:04 PM
    • Analyst: Oil Prices Inflated by 50% [view article]
      Well, now that speculartors have gone, so as your gasoline. Refiners are the biggest losers on the speculator blame-game. I feel no sorry for your guys paying $4+ a gallon. See what Petro Canada just said about the costs their oil sand projects. It's true the current barrel is cheaply produced but tomorrow's oil is the problem. I'm sorry, Wall Street does not look beyond one week, at best the next quarter. Sep 18 02:04 AM
    • Demand for Oil Starts to Falter [view article]
      Less milage means slower economy, a very rosy outlook. Idiot Sep 15 07:30 PM
    • Gold Hammered, Oil Slicked: Is This the End of the Resource Boom? [view article]
      What do you think the reason(s) behind the US dollar rally? I just can't think of any fundamental reason for a strong dollar except other economies, hence their currencies are weakening. The US is still importing 15 million bbls of oil a day, that $1.5 bn a day, financing the two wars, and just taking on $5 trillion debt from F&F Sep 11 03:17 AM
    • Strong Fundamentals and Oil Ties Make Transocean a Great Long-Term Buy [view article]
      To Chris;
      1) If the price of oil drops to X ($80, $60, $40) at what point do RIG's contracted day rates, and thus revenue, adjust per the terms of their contracts? Has anyone analyzed this?
      Their contracts are not cancellable. A lesson learnt from previous down turns. Most new contracts have cost escalation clauses meaning costs will be passed to oil companies.

      2) If their revenue drops, as the first question ponders, then at what oil price would they be unable to service their debt?
      Current backlog is $40.7 billion which will leave almost $10 bn in spare after paying back all debts. You need to worry about what they are going to do with the cash flooding in.

      3) Has anyone considered the risks of non-payment or contract abandonment by RIG's customers if oil prices continue to plummet towards historical means?
      See No1.
      OPEC is defending $100 oil (a level that got passed just this April) whereas Petrobras is contracting all deepwater rigs it can find for the next 10 years. Their projects require $100-$115 oil to be sustainable. Do you think they go ahead if they think oil will be at $80, $60 a barrel?       Sep 09 10:51 PM
    • Remember Those $200 Oil Predictions? [view article]
      Another I told you so moron Sep 09 07:14 PM
    • Ospraie's Poor Portfolio Weighting: XTO Contributes Major Loss to Fund [view article]
      It's easy to point out others faults to make yourself looking good. I find it insulting Sep 08 06:15 AM
    • Crude Reality: Big Oil's Purposely Restricting Supply [view article]
      I do feel sorry for the author. So uninformed! Aug 01 07:55 AM
    • MEMC Electronic: Glass Half Empty or Half Full? [view article]
      I like the net of cash valuation approach. However, the current FCF is about 7% not 4.5% and heading to 9-10% next year Jul 28 06:58 AM
    • USO Breaks Upward Trendline…Finally [view article]
      How many chartists actually make money in the market? Jul 17 03:04 AM
    • All of the Motor-Fuel Alternatives to Conventional Crude Oil Stink [view article]
      In respond to Brian Pursley, I's no longer feel sorry for the general public for high oil price. Keep on hoping. Jun 26 04:57 PM
    • All of the Motor-Fuel Alternatives to Conventional Crude Oil Stink [view article]
      Thanks Scott, you made me laugh and I do agree with you. Jun 25 05:10 AM
    • China Cuts Subsidies - Is a Pullback in Oil Next? [view article]
      Look beyond the obvious! Any with some basic economic can write these basic stuff. Do you know much about Chinese and their cultures. Mark my words: watch for higher oil prices. Jun 20 07:16 AM
    • Transocean: Drilling For Profits [view article]
      Gaurav,
      Be patient! I am a long term holder of offshore drillers. Take Ensco for example, it was on Merrill Lynch's Conviction Sell and was lagging RIG for almost a year, but fundamentals prevailed. It is one of the cheapest with strongest balance sheet amongst drillers. RIG is now dirt cheap considering very solid backlog at $34 billion. The latest June operations report showed considerable jumped in two contract rates.
      Be patient. Not many companies have such tail wind.       Jun 11 08:33 AM
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