Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
The article actually addressed that very question.
Too bad the commenter didn't read the article before commenting on it.
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
One alternative is to read the article and find out for yourself. The easier one is to just fling out a knee-jerk rant.
I don't know enough about the topic to know how much their facts are skewed, incorrect or leave out important facts that don't support the angle that the article wants to push.
I'm not commenting on whether or not the article is biased -- it certainly does have a point of view that it is pushing. I'm laughing at all the comments that were clearly made without reading the article, because the article did anticipate some of these knee jerk rants and presented some facts to counter them.
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
So... did anyone read the article before commenting?
"Coke, which is mainly carbon, is an essential ingredient in steelmaking as well as producing the electrical anodes used to make aluminum.
While there is high demand from both those industries, the small grains and high sulfur content of this petroleum coke make it largely unusable for those purposes, said Kerry Satterthwaite, a petroleum coke analyst at Roskill Information Services, a commodities analysis company based in London.
“It is worse than a byproduct,” Ms. Satterthwaite said.“It’s a waste byproduct that is costly and inconvenient to store, but effectively costs nothing to produce.”
And there is now an addition of assets (cash from the sale) to be split amongst those shares. So the numerator rose too... by an amount that equals (or betters) the market value of the pre-secondary shares.
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
So what is your point? Elon makes a statement when the stock is at a certain price. About a week later, the stock has an incredible run up, that no one could have foreseen and is a godsend to a financially fragile startup. TSLA takes advantage of this godsend and stabilizes the company. But this makes them... what is your point... dishonest?
So would it make you feel better if TSLA didn't so the secondary? To what end? Have you ever run a company? Why would you NOT take advantage of this unbelievable manna that just fell out of the sky?
George -- my reply is this... yes, it is something to be happy about for TSLA longs. Reason = TSLA is an interesting beast with high volatility option characteristics on BOTH the downside and the upside. This secondary placement lowers the probability of downside (e.g., bankruptcy) scenarios and gives them a little warchest for lots of things. Short term hit, long term gain.
I was saying they should have done it after it made its first 25% up move, post conference call. If anything, the move was a little bit overdue, IMHO. Cheers.
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
More seriously, this is a mountain out of a mole hill. I doubt even Elon would have guessed what would happen to the stock after he made those statements. And now the situation is dramatically different. What just happened is extremely rare and a godsend to the company. They would be stupid and irresponsible to not take advantage of the situation to stablize what is still a somewhat fragile financial position. When the world changes, one must react to the new circumstances.
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
There *was* an unexpected supply interruption... in the availability of stock on loan for shorting ;-)
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
My specific point was that TSLA doesn't need to aim to "be Ford" in order to *eventually* have a market cap as large as Ford's. In the near term, they will aim to be more like BMW, with respect to product margins. But I certainly get *your* larger point -- right now, BMW is 265x the volume and 4.7x the market cap of TSLA... so perhaps the objective summary statement of the situation might be "TSLA longs appear to be willing to pay for that upside very far in advance of it materializing." Cheers.
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
The better point of comparison is BMW. Right now, says Yahoo Finance, the market values of F, BMW and TSLA are 58b, 47b and 10b respectively. So BMW is in "shooting distance" of Ford with a target market that is closer to TSLA... or perhaps more accurately, where TSLA will be aiming for the near term.
Future execution issues aside, of course. My point is that TSLA doesn't need to sell econoboxes to "deserve" a market cap on par with F. Cheers.
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
Another way to think about why a secondary raise would (counter to the typical reaction) be cheered by TSLA longs. Think of TSLA, pre secondary, as having a strong volatility component (both upside and downside), in terms of "company could become a corporate titan" or "could crash and burn". The secondary raise reduces the probability of the downside scenario, while increasing the probability of the upside scenario.
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
Disagree about the credibility issue. The runup since that statement has been unreal, something that rarely comes along. It would be downright stupid and irresponsible of TSLA management to *not* take advantage of it and raise more capital.
Tesla's First Red Flag [View article]
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
Too bad the commenter didn't read the article before commenting on it.
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
I don't know enough about the topic to know how much their facts are skewed, incorrect or leave out important facts that don't support the angle that the article wants to push.
I'm not commenting on whether or not the article is biased -- it certainly does have a point of view that it is pushing. I'm laughing at all the comments that were clearly made without reading the article, because the article did anticipate some of these knee jerk rants and presented some facts to counter them.
So I'm just finding the whole thing entertaining.
Refining Canada’s oil sands produces petroleum coke, called "the dirtiest residue from the dirtiest oil on earth." It's piling up along the Detroit River, NYT reports, thanks to a Marathon Petroleum refinery that began refining Canadian oil sands in November. Detroit’s pile will not be the only one. Canada’s efforts to sell more products from oil sands to the U.S., which include transporting it through the proposed Keystone pipeline, are pulling more coking south to U.S. refineries, creating more waste product. [View news story]
"Coke, which is mainly carbon, is an essential ingredient in steelmaking as well as producing the electrical anodes used to make aluminum.
While there is high demand from both those industries, the small grains and high sulfur content of this petroleum coke make it largely unusable for those purposes, said Kerry Satterthwaite, a petroleum coke analyst at Roskill Information Services, a commodities analysis company based in London.
“It is worse than a byproduct,” Ms. Satterthwaite said.“It’s a waste byproduct that is costly and inconvenient to store, but effectively costs nothing to produce.”
Tesla's First Red Flag [View article]
Tesla's First Red Flag [View article]
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
So would it make you feel better if TSLA didn't so the secondary? To what end? Have you ever run a company? Why would you NOT take advantage of this unbelievable manna that just fell out of the sky?
This whole conversation is beyond silly.
Tesla's First Red Flag [View article]
I was saying they should have done it after it made its first 25% up move, post conference call. If anything, the move was a little bit overdue, IMHO. Cheers.
Tesla's First Red Flag [View article]
You're way too deep in some irrelevant weeds on this issue and missing the bigger picture.
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
Nothing to see here people, move along.
How things can change in a week. Tesla Motors (TSLA) CEO Elon Musk's response during a conference call (transcript) on a question over a capital increase was pretty definitive that the automaker had spent "no time" on the concept and a secondary offering would only be to ensure against an "unexpected supply interruption" or "risk event." To be fair, an exec being coy is nothing new and shares of Tesla were only in 3rd gear at the time - but the response is still intriguing. (h/t SA contributor George Kesarios) [View news story]
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
Future execution issues aside, of course. My point is that TSLA doesn't need to sell econoboxes to "deserve" a market cap on par with F. Cheers.
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]
More on Tesla: The company announces it's offering 2.7M shares (current value of $244M) and $450M in convertible debt due 2018 in a public offering. Elon Musk plans to buy $100M worth of shares - $45M through the offering, $55M through a private placement. Tesla expects $830M in gross proceeds. TSLA now +6.8% AH. [View news story]