MLPs -- Part 6: MLP Structure and IRS Qualification [View article]
<However, higher yielding investments probably have lower interest rate risks than low yielding investments; and unlike bonds which do not pay more when rates rise, MLPs may experience improving business conditions during a rising rate period that may allow continued distribution growth>
I've heard and read the opposite. You use the word 'probably'. How much it costs to service their debt is of little consequence in a zirp enviroment. However, when rates rise, their ability to deal with their debt, particularly in light of growth prospects, becomes paramount. If they have to pay more for it, then that cuts into $ that would normally be used to fuel growth. Share issuance begins to look like dilution rather than what it should be-an avenue for growth.
Anadarko Discovers Oil in Mozambique [View article]
Whether that can be overturned (voided) and the mud/cement issue (a BIG issue that BP will, sooner or later, have to come clean about) are the 2 things that will shape the outcome of this case/trial(s).
I still feel (for the time being, anyway) that we'll get a lot of back and forth, but in the end BP will relent (and have to pay up) when the total amount is within a range that they're okay with. I'm sure they'd like RIG to relent a bit also and throw in a few hundred million (or a billion-lol) or so.
<questions 1. If Transocean is the drilling expert don't they have veto power over any unsafe directives from the so called Suits as the drilling rig operators say? 2. If #1 is true does not make Transocean also liable? 3. What is Anadarco's role in this. Are they just an investor?>
Very good questions, too, imo. I believe the protocol (and the contract??) is that BP runs the show despite the driller being the expert. Like others have mentioned, did RIG ignore BP's directives?? If so, BP might have wiggle room. Otherwise, stupid is as stupid does.
As far as your #3 question, I've been wondering the same thing for quite a while. When do we here more about APC's role?? Did they have nothing but their $ involved here?? They've refused to pay, but it doesn't appear that's a done deal. How else are they involved, and why has nothing come out about that??
Transocean: Undervalued and Ripe for the Buying [View article]
Yes, but will a jury try to overturn that?? More specifically, how will BP explain the mud/cement issue??
I'm interested to see how BP will 'seduce' RIG into offering something to help with the payback. I'm not convinced that any public back and forth is for real. They can give us a show through the media, but the backroom deals (btwn the lawyers, biggest shareholders, etc) will ultimately decide things.
You're right, William. I have talked to someone in IR at RIG and he told me that he anticipates that they will try to settle with all the families (9 actually, 2 were BP employees fwiw) out of court and out of the spotlight, if possible (not surprising...any co would like to do it this way).
Initial Jobless Claims Back Up to Half a Million [View article]
<You sir, need to live in the "now", and stop wishing for the "then" (which was not all the great to begin with).>
This sounds like something that is repeated a lot in S.F. While things may be rosy in your "now", there are no roses in many places that did once have them. I live north of you, in Shasta County. Here, unemployment is about 20%. Not to 'go racial', but I've never seen so many white people with hand scrawled signs, standing at intersections. After having lived in SoCal for most of the last decade, I got used to seeing Latinos being the ones who were doing the standing at intersections. I got quite a shock when I got up here. I'm in grocery mgmt, and folks here use EBT (food stamps) cards as commonly as CCs in S.F.
Be grateful for the bubble you and your friends are living in. It's been popped for a lot of others.
Transocean: Undervalued and Ripe for the Buying [View article]
You're basing your outlook on a lot of assumptions-perhaps in a similar way to us longs.
Are you certain enough to short at $54 and not just post opinions about RIG's future?? You say you're an attorney. What kind of law do you practice, and for how long?? What type of experience do you have in this area??
This is the second post I've read of yours that mentions RIG's debt. As far as I can tell, servicing their debt hasn't been a problem. Were you posting somewhere before 4/20 about their debt problems, or ratios of debt to marketcap?? Where were you when this was trading at $90+ in the spring?? No one was talking debt problems at that point. I mean, sure...if BP somehow miraculously was handed a gift, the contract was voided (all or in part) due to the 'gross negligence' claim, the entire nature of operators and driller's relationships were to undergo a cataclysmic shift , then yes, a huge amount will bring forth a discussion of their debt situation.
But, for now, you're speculating too. And if you're not shorting, you're not putting your $ where your mouth is.
Transocean: Undervalued and Ripe for the Buying [View article]
Huh?? I can't tell if you're post is pro or con buying RIG.
The divvy has been verboten by the swiss commisson (or whoever). However, rather than seen as a bad thing, this actually gives RIG a billion dollars more to deal with the fallout. Some will will bail on monday b/c of it, but it is a silver lining imo.
The Dems need that ban overturned before the elections. Their gonna get their heads handed to them and they know it. They'll try everything to keep the seats, and overturning the ban sooner than 11/30 will be the most obvious (in addition to trying to keep blaming GWB for all the problems we currently have).
MLPs -- Part 6: MLP Structure and IRS Qualification [View article]
I've heard and read the opposite. You use the word 'probably'. How much it costs to service their debt is of little consequence in a zirp enviroment. However, when rates rise, their ability to deal with their debt, particularly in light of growth prospects, becomes paramount. If they have to pay more for it, then that cuts into $ that would normally be used to fuel growth. Share issuance begins to look like dilution rather than what it should be-an avenue for growth.
MLPs -- Part 6: MLP Structure and IRS Qualification [View article]
Rio Tinto: Commodity Prices Could Drop to New Lows [View article]
Anadarko Discovers Oil in Mozambique [View article]
I still feel (for the time being, anyway) that we'll get a lot of back and forth, but in the end BP will relent (and have to pay up) when the total amount is within a range that they're okay with. I'm sure they'd like RIG to relent a bit also and throw in a few hundred million (or a billion-lol) or so.
Rule of Law, BP Edition [View article]
Please make your point more clearly.
Rule of Law, BP Edition [View article]
1. If Transocean is the drilling expert don't they have veto power over any unsafe directives from the so called Suits as the drilling rig operators say?
2. If #1 is true does not make Transocean also liable?
3. What is Anadarco's role in this. Are they just an investor?>
Very good questions, too, imo. I believe the protocol (and the contract??) is that BP runs the show despite the driller being the expert. Like others have mentioned, did RIG ignore BP's directives?? If so, BP might have wiggle room. Otherwise, stupid is as stupid does.
As far as your #3 question, I've been wondering the same thing for quite a while. When do we here more about APC's role?? Did they have nothing but their $ involved here?? They've refused to pay, but it doesn't appear that's a done deal. How else are they involved, and why has nothing come out about that??
Transocean: Undervalued and Ripe for the Buying [View article]
I'm interested to see how BP will 'seduce' RIG into offering something to help with the payback. I'm not convinced that any public back and forth is for real. They can give us a show through the media, but the backroom deals (btwn the lawyers, biggest shareholders, etc) will ultimately decide things.
Rule of Law, BP Edition [View article]
Initial Jobless Claims Back Up to Half a Million [View article]
This sounds like something that is repeated a lot in S.F. While things may be rosy in your "now", there are no roses in many places that did once have them. I live north of you, in Shasta County. Here, unemployment is about 20%. Not to 'go racial', but I've never seen so many white people with hand scrawled signs, standing at intersections. After having lived in SoCal for most of the last decade, I got used to seeing Latinos being the ones who were doing the standing at intersections. I got quite a shock when I got up here. I'm in grocery mgmt, and folks here use EBT (food stamps) cards as commonly as CCs in S.F.
Be grateful for the bubble you and your friends are living in. It's been popped for a lot of others.
Unemployment: This Is Not the 1930s [View article]
Why would you say the above AND accuse him of being a socialist??
Transocean: Undervalued and Ripe for the Buying [View article]
Are you certain enough to short at $54 and not just post opinions about RIG's future?? You say you're an attorney. What kind of law do you practice, and for how long?? What type of experience do you have in this area??
This is the second post I've read of yours that mentions RIG's debt. As far as I can tell, servicing their debt hasn't been a problem. Were you posting somewhere before 4/20 about their debt problems, or ratios of debt to marketcap?? Where were you when this was trading at $90+ in the spring?? No one was talking debt problems at that point. I mean, sure...if BP somehow miraculously was handed a gift, the contract was voided (all or in part) due to the 'gross negligence' claim, the entire nature of operators and driller's relationships were to undergo a cataclysmic shift , then yes, a huge amount will bring forth a discussion of their debt situation.
But, for now, you're speculating too. And if you're not shorting, you're not putting your $ where your mouth is.
Transocean: Undervalued and Ripe for the Buying [View article]
The divvy has been verboten by the swiss commisson (or whoever). However, rather than seen as a bad thing, this actually gives RIG a billion dollars more to deal with the fallout. Some will will bail on monday b/c of it, but it is a silver lining imo.
The Dems need that ban overturned before the elections. Their gonna get their heads handed to them and they know it. They'll try everything to keep the seats, and overturning the ban sooner than 11/30 will be the most obvious (in addition to trying to keep blaming GWB for all the problems we currently have).
Is Vanguard Blogger John Ameriks Right That 'It's Too Late for Gold'? [View article]
You're safe from nothing. Choosing atheism is the lazy man's way of trying to hide from God-which isn't possible.
Freewill allows your present choice. "God gives you time, but not forever."
MLPs -- Part 5: MLPs Passing Very Simple Fundamental Screen [View article]
Good choices imo.
Credit Suisse: Why QE2 Will Work [View article]