Seeking Alpha

kmi

kmi
Send Message
View as an RSS Feed
View kmi's Comments BY TICKER:
Latest  |  Highest rated
  • OPEC appears unlikely to stop the oil rally, helping to prepare the way for $100/barrel oil. The cartel will not move as long as it remains to be seen whether prices are responding to short-term weather conditions or longer-term demand and monetary issues. "The Fed has in a sense been pushing the speculators," one oil watcher says. "OPEC can very well argue it's not its role to add more oil."  [View news story]
    The copywriter phrases it as if OPEC would willfully and purposely assist oil's rise to $100. From the linked article:

    ""If it goes to $100 due to speculation, OPEC will not move," OPEC Secretary General Abdullah al-Badri said this month. He also said the organization did not want oil to rise that far."

    In my experience what OPEC says and does is more important for oil fundamentals than virtually anything else. And they are more honest too.
    Dec 29, 2010. 11:15 AM | Likes Like |Link to Comment
  • Robert Shiller says the drop in the latest Case-Shiller home price index was worse than expected, and the economy will face "serious reasons to worry" if house prices continue to fall at the current rate. Shiller thinks a panicked Congress would issue another home-buyer tax credit or other emergency measure to stop the fall.  [View news story]
    House prices will fall as long as QE continues. They are not falling in a vaccuum, it seems pretty clear to me values are going to go down as a result of the efforts being made to save them.

    The question is, which will fail first, the Fed's effort at rebuilding banks or the loan portfolios held by the banks...
    Dec 29, 2010. 11:11 AM | 2 Likes Like |Link to Comment
  • Seemingly putting the Gulf spill behind it, the oil industry is getting ready for record spending in 2011, including a significant amount of funds for deep-water development.  [View news story]
    Like the Bahamas? Or Ireland? Or Gibraltar? Hehe. Considering all the numbers NG has been putting up - lower BTU for BTU cost, higher domestic availability/accessibi... I'd be surprised if energy companies stuck all their eggs in the oil basket.
    Dec 29, 2010. 11:07 AM | 1 Like Like |Link to Comment
  • U.S. firms have asked the White House for a tax holiday to help them repatriate some of their $1T-plus of offshore earnings, but the truth is that multinationals have been quietly, but legally, finding loopholes around the tax for years.  [View news story]
    I love this comment smitty; I think that is precisely right.

    Although in terms of the general conversation the US will soon have the highest corporate tax worldwide. This is part of the problem.

    The tax code is so convoluted and byzantine that companies have to hire these "non constructive" professionals to find the loopholes and methods to circumvent the code.

    If the code was simpler, and rates were lower, this would be a great win for american business, as well as for the average american as companies would be more encouraged to retain their capital here.
    Dec 29, 2010. 11:05 AM | 2 Likes Like |Link to Comment
  • Former Shell Oil president John Hofmeister paints a scary outlook for gas prices in the coming decade: $5/gallon by 2012. "Within 10 years, we’re into energy shortages in this country big time. Blackouts, brownouts, gas lines, rationing." He expects no new drilling in the Gulf of Mexico for two years: "The headline is the moratorium is lifted; the reality is you can’t get a permit."  [View news story]
    I'll make a political reply to a political comment:

    In keeping with Bush era practice, let's scare the bejeezus out of everyone with dire predictions of disaster and despair should our own agenda not be the one people are pushing for. Scared sheep are compliant sheep. Bush for King!
    Dec 29, 2010. 10:53 AM | 1 Like Like |Link to Comment
  • Former Shell Oil president John Hofmeister paints a scary outlook for gas prices in the coming decade: $5/gallon by 2012. "Within 10 years, we’re into energy shortages in this country big time. Blackouts, brownouts, gas lines, rationing." He expects no new drilling in the Gulf of Mexico for two years: "The headline is the moratorium is lifted; the reality is you can’t get a permit."  [View news story]
    It's fair to bemoan idle rigs and lost opportunity in the Gulf, to propose that $8/gal gas will be the result is far beyond reasonable.
    Dec 29, 2010. 10:50 AM | 1 Like Like |Link to Comment
  • Former Shell Oil president John Hofmeister paints a scary outlook for gas prices in the coming decade: $5/gallon by 2012. "Within 10 years, we’re into energy shortages in this country big time. Blackouts, brownouts, gas lines, rationing." He expects no new drilling in the Gulf of Mexico for two years: "The headline is the moratorium is lifted; the reality is you can’t get a permit."  [View news story]
    A lot of them are currently in play. US imports of energy are down. The EIA itself has said that US consumption peaked and will never rise again, but that emerging markets are more than picking up the slack.

    This psychopath is talking about one thing only:

    "I’m predicting, based upon the moratorium in the Gulf of Mexico, up to a million barrels a day of US production gone because of the politics of freezing drilling in the Gulf."

    He is making the case that without Gulf oil supplies the US is in for $5 gas. That's so far beyond a well reasoned argument it's a wonder this got published.
    Dec 29, 2010. 10:48 AM | 1 Like Like |Link to Comment
  • Today's Tesla (TSLA -15%) meltdown is more than just locked-up shares suddenly flooding the market. "The biggest problem facing Tesla is that every automaker is now seriously looking into electric vehicles," Edmunds says, and Tesla could easily be "overwhelmed - and overspent - by the bigger players, making it irrelevant in a relatively short timeframe."  [View news story]
    I don't hold Tesla stock at the moment. But I am arguing against misinformed opinions. I am cautiously optimistic on TSLA performance. There's a lot out there for it to fight against, but so far it has tracked its business plan to a T, so there's a lot it has going for it too.
    Dec 28, 2010. 01:06 PM | Likes Like |Link to Comment
  • Apple (AAPL) is facing a potential class-action suit, over claims that some of its apps give users' personal info to advertisers without customers' consent. Some apps allegedly even sell user information including gender, age, income, etc.  [View news story]
    With regards to Apple, they are both proud of and make a point to mention that they vet apps internally to make sure they conform to "Apple Standards"; I suspect someone out there thinks this means Apple should also shoulder some liability.

    Side note - Google's Android has also been accused of the same but they never claim to vet apps internally.
    Dec 28, 2010. 01:00 PM | Likes Like |Link to Comment
  • Pres. Obama will name his replacement to the National Economic Council next month. His choice will be closely watched and could signal a new direction for an administration struggling to jolt the economy back to life.  [View news story]
    Out of curiosity, do you think that is worse than than a revolving door corporate type?
    Dec 28, 2010. 12:58 PM | Likes Like |Link to Comment
  • The average price of U.S. gasoline rose to $3.05/gallon, adding $0.07 from the previous week and reaching its highest level since October 2008, the Energy Department says.  [View news story]
    Short term compression in supply remedied by mid January... tax stuff etc...
    Dec 28, 2010. 12:51 PM | Likes Like |Link to Comment
  • Anti-regulation proponents are right that the laissez-faire attitude of the South and West explains recent growth, but Edward Glaeser says their argument is off the mark. Housing regulations explain the Sunbelt's population growth more than those that bind business, he writes, and states that want to stop shrinking should revisit rules that make it so difficult to build.  [View news story]
    Overregulation, highest taxes in the country, and high costs of construction has decreased the viability of multifamily building as well as residential to a lesser effect in my area (suburban NYC - Westchester County - mentioned in the article) which has decreased the overall quality and abundance of the product. The overall housing product in my area suffers from age, cost of maintenance, and for most folks an inability to fund renovation to modernize and improve the efficiency of the product.

    It's another reason why there is an exodus of people and business from here to the sunbelt.
    Dec 28, 2010. 12:46 PM | Likes Like |Link to Comment
  • Sources say Apple (AAPL +0.1%) will ship 3 different models of the iPad 2 in 2011. Among other changes, Apple reportedly will be working with telecoms to beef up the iPad's wireless capabilities. The new device will also be smudge- and reflection- resistant to compete better against the Kindle (AMZN -0.4%).  [View news story]
    Camera/no cmaera?

    16gb/32gb/64gb?

    Jobs on record as saying 7" is junk so it won't be form factor size...

    My guess it might be CDMA/GSM/wireless.
    Dec 28, 2010. 12:40 PM | Likes Like |Link to Comment
  • “The most alarming thing ... is the level of complacency,” says Meredith Whitney, warning about a financial meltdown in state and local governments "in the next 12 months." The size of this calamity? "Fifty to 100 sizeable defaults ... hundreds of billions of dollars."  [View news story]
    The difficulty with public salaries is that yes, they are supposed to track the private sector, but, while private sector incomes have held steady or decreased with regards to inflation, public sector incomes have increased and carry the bonus of benefits that outclass what the private sector offers.

    This combination is the mistake. The mandate is the government should pay its employees comparable salaries to the private sector but this has long ceased to be the case. however, I suspect it is next to impossible for the government to redress this and reduce or hold steady salaries and packages.
    Dec 28, 2010. 12:37 PM | Likes Like |Link to Comment
  • Today's Tesla (TSLA -15%) meltdown is more than just locked-up shares suddenly flooding the market. "The biggest problem facing Tesla is that every automaker is now seriously looking into electric vehicles," Edmunds says, and Tesla could easily be "overwhelmed - and overspent - by the bigger players, making it irrelevant in a relatively short timeframe."  [View news story]
    Not to overstate the case for Tesla, but I should reiterate the business plan was never about starting with a mass adoption device. The plan was to start with a high margin "toy" to help offset development costs, create momentum, and reduce costs while driving down to cheaper more available transportation.

    There is a lot of opinionating about Tesla that has nothing to do with actual fact.

    Toyota is on the record as being anti-EV until Tesla, Mitsubishi and Nissan showed it could be done. They didn't ignore EVs entirely - but they expressly stated that their hybrid powertrain was the short term answer - and the proof is that they barely have a viable product, and they had to subcontract with Tesla to get it done.

    Contrast that Nissan's Leaf which is already selling, or Mitsubishi's iMiev which is selling multinationally.
    Dec 28, 2010. 12:33 PM | Likes Like |Link to Comment
COMMENTS STATS
4,238 Comments
4,104 Likes