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Gene Jaquet

Gene Jaquet
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  • Wall Street Breakfast: Must-Know News [View article]
    "The Iraq war was widely supported when it was politically popular, and widely decried when it was unpopular."

    Or, The Iraq war was politically popular when it was widely supported, and unpopular when it was widely decried.

    Congratulations, you win the WSB tautological post of the day award.
    Apr 16 03:52 PM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    @GGGL you still haven't explained how it is that one people - the Chechnyans who share with Russia neither language, culture or religion - deserve misery and slaughter for wanting independence, whereas those in Ukraine who want independence from Kiev get the full support of the Kremlin. PLEASE gggl, enlighten me.

    And the new government in Kiev did not "disenfranchise" anyone - the political parties from WESTERN Ukraine, who control parliament, voted according to the constitution to impeach the president. Western Ukrainians STILL hold a majority in that same parliament.

    In any case elections will be held in a month, so what's the problem? You come across as the great defender of democracy, so why not wait for the votes to be cast? What is happening now, for those too blind to see it, is that Putin needs to grab territory before the elections, because as sure as eggs is eggs those wanting to rejoin Russia will not win a majority, not even in the west.

    Apr 16 11:04 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    He has a very particular definition of "civil war" - a few hotheads taking over a building or two is civil war, but the bombardement and slaughter of thousands in Chechnya at the hands of russia's "professional army" is a legitimate response to terrorism.

    Putin's blatant lies serve only to shore up his crumbling empire, or whatever remains of it. Thank God the USSR is no more.
    Apr 16 10:19 AM | 3 Likes Like |Link to Comment
  • How Much Does Seeking Alpha Pay Its Contributors? [View article]
    "This led us to change our payment model and channel a large percentage of author payments to quality rather than popularity. Having said that, I still think too much of the decision about what constitutes quality rests in editors' hands."

    I would have thought the simple answer to your conundrum was to vary the CPM rates. For popular stocks, stick to $10, and for niche stocks set €20 or whatever. That way, consumers still determine the value of an item, not an expert panel. The experts only determine the potential, not the result.

    But I'm sure you've already thought of that.. Anyway thanks for providing a great service to us all.
    Apr 11 07:52 AM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    GGGL I can't even begin to understand why you so admire Putin and the Mafiosi style he uses to grab territory.

    From Alexey Navaly writing in the NYT : "What is truly alarming in Mr Putin's rash behavior is that he is motivated by the desire for revenge against the Ukrainian people for revolting against a Kremlin-friendly government. A rational actor would know that the precedent of holding a local referendum to determine sovereignty is risky for Russia - a federation of more than 80 disparate regions, including more than 160 ethnic groups and at least 100 languages".

    So GGGL, where do you stand on the civil war in Chechnya? 95% of it's population is non-Russian, they share neither language NOR religion with Russia, yet they have been slaughtered by the thousands for wanting independence. What's the difference between Chechnians wanting to opt out of Russia, and western Ukrainians wanting to opt out of Ukraine?

    Still a Putin fan?
    Apr 9 10:44 AM | 2 Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    So buy shares in the Loan Shark, not the debtor.
    Except he's down too, because his (only) creditor is doing poorly.
    Go figure...
    Apr 8 09:47 AM | Likes Like |Link to Comment
  • Kinder Morgan: A Merger Is Very Much A Possibility [View article]
    @BOBAUTEN thank you again for your comment. One quibble however : "This would ... eliminate all the short seller (Hawkeye, Barrons) issues about calculating the IDR benefit/cost of maintenance vs growth capex." - this is not the case.

    As I see it, KMP currently pays out 45% of DCF to general partner KMI in the form of IDRs. If a deal were done, and for the sake of argument say that the IDRs were exchanged for a 45% stake in the company (45% of KMP's partnership units), this would have no bearing on the Hawkeye argument.

    Hawkeye says (I'm paraphrasing) that by wrongly classifying large chunks of expenditures as capex instead of maintenance, KMP inflates DCF, and as a result inflates the IDRs it pays to KMI. So, according to Hawkeye, the general partner is ripping off the limited partners.

    But unless accounting practices were changed this "rip off" would continue: DCF would still be inflated, and (after our hypothetical deal was done) 45% would still get paid out to someone other than the original limited partners. Put another way, 45% in our example would no longer go to KMI but to the new limited partners created by the deal. Where the money goes is of no concern to existing limited partners - only the fact that it "goes" matters.

    In sum, an accounting change would address the Hawkeye argument, a KMP-KMI deal would not.

    With one caveat : KMI has occasionally foregone IDRs in order to facilitate KMP investment programs. This would no longer be possible if KMI swapped its IDR rights for new limited partnership units in KMP.

    KMP unit holders should be careful what they wish for....
    Apr 8 09:31 AM | 3 Likes Like |Link to Comment
  • A Kinder Morgan Merger Is Not Feasible [View article]
    @BOBAUTEN good comments thank you. One quibble however : "BUT this whole issue goes away if KMP buys out KMI's IDR interests" - this is not the case.

    As I see it, KMP currently pays out 44% of DCF to general partner KMI in the form of IDRs. If a deal were done, and for the sake of argument say that the IDRs were exchanged for a 44% stake in the company (44% of KMP's partnership units), this would have no bearing on the Hawkeye argument.

    Hawkeye says (I'm paraphrasing) that by wrongly classifying large chunks of expenditures as capex instead of maintenance, KMP inflates DCF, and as a result inflates the IDRs it pays to KMI. So, according to Hawkeye, the general partner is ripping off the limited partners.

    But unless accounting practices were changed this "rip off" would continue : DCF would still be inflated, and (after our hypothetical deal was done) 44% would still get paid out to someone other than the original limited partners. Put another way, 44% in our example would no longer go to KMI but to the new limited partners created by the deal. Where the money goes is of no concern to existing limited partners - only the fact that it "goes" matters.

    In sum, an accounting change would address the Hawkeye argument, a KMP-KMI deal would not.

    With one caveat : KMI has occasionally foregone IDRs in order to facilitate KMP investment programs. This would no longer be possible if KMI swapped its IDR rights for new limited partnership units in KMP.

    KMP unit holders should be careful what they wish for....
    Apr 8 09:13 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Goodbye Mr Letterman. Always sad to see an old friend go.
    Apr 4 09:39 AM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    I for one sincerely hope we start an (economic) war. I hope not only that the Kremlin is osrtacized - and excluding it from the G8 is a good start - but that Russians and in particular the oligarchs bear real financial loss. No country should be able to send troops across its borders for the purpose of furthering national interest or grabbing territory, without paying a penalty.

    As I've said before Crimea is not the issue. If they want to leave Ukraine I have no problem. I do have a problem with Russia sending tanks and troops to influence events.

    The obvious precedent to this was the US invaision of Iraq, which was an unmitigated disaster and significantly diminished US influence throughout the world. I hope that in 5 years time the Russians come to regret their use of force every bit as much as the US does with Iraq.

    You are right, many other nuclear-tipped countries will be watching this: Pakistan with it's Kashmir situation, China with those ridiculously small islands, and pretty much every country that has kin on the wrong side of a border, and there are plenty of those.

    "Our President and our allies appear powerless" - perhaps, but the fat lady hasn't stopped singing. They were absolutely right not to use, or even threaten, a military response. Now they need to rachet up sanctions and boycotts. In the end the world will be a safer place.
    Mar 28 01:37 PM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    @bob- well that pretty much sums it up. I have no quibbles with any of your predictions, it's just that you could have included at least one positive...
    Mar 28 01:08 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    For those still following the Ukraine situation, note that Ukrainian women have called for a sex boycott against Russian men.

    From The Independent: "The Facebook group Don't Give it to a Russian was launched last week and calls on Ukraine's "female heroes" to fight the enemy by whatever means. In this case, denying sex to Russian men."

    One Russian Miss tweeted a surprise approval - thanks to the boycott, there will be more men available at home.

    Seems this crisis has now erupted into all-out war...
    Mar 27 08:58 AM | 12 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    @Logix "The US grows much more corn than it can consume in food products so if it were not used for fuel much of the national crop would be wasted."

    This is fundamentaly wrong - you assume that people are growing all the corn they can, regardless of cost, and then trying to figure out how to sell it. Basic business logic tells you that the size of the corn crop depends on demand. And that demand (in the case of ethanol) is boosted by insane subsidies from washington. Take away the subsidies, ethanol production will decrease, and the corn crop will decrease as corn prices drop.

    The essence of free markets is the efficient use of resources. The beauty is that there is no waste - at least untill the government gets involved...
    Mar 25 03:05 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Additional disclosure : I am long Kinder Morgan and Enterprise Products Partners, have been for a long time, and will be for even longer.

    Both are already investing massive amounts of MY MONEY in upgrading oil and natural gas infrastructure. And, the last I heard they had not received a SINGLE DIME from the US government.

    Anyone who is saying that our tax dollars will subsidize a "bailout" of european energy consumers is plainly delusional. Please give sources when making ridiculous claims.
    Mar 25 02:52 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    You're either in favor of free market capitalism, or against. Free markets and exports are a big part of what made this country rich. If everybody kept their natural resources just to themselves, we'd all still be pulling plowshares.

    Openning up exports to the rest of the world is certainly not a subsidy to Europe. American energy companies, pipeline companies, and suppliers to those industries will make out big time (and so will their shareholders). No one is suggesting that our government pay for new pipelines and export facitilies - it will all be private sector investment, subject to ROI criteria like any other business.

    Markets should be allowed to function with as little government intervention as possible. Trying to tweak the rules when it suits you is bad economics.
    Mar 25 08:17 AM | 24 Likes Like |Link to Comment
COMMENTS STATS
442 Comments
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