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  • Wall Street Breakfast: Crude Surges On Yemen Tensions [View article]
    Seems to me that when this blows over it will be time to short oil, not go long.
    Mar 26, 2015. 03:31 PM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Crude Surges On Yemen Tensions [View article]
    I think it is meant for the export markets like Africa and South East Asia. What I wonder is why are they investing so much money in India when they are not getting any return on their investment in that country. Clearly centralizing their production to China or South East Asia would make a lot more sense or developing a production hub in Africa (they already produce some in South Africa).
    Mar 26, 2015. 10:38 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Crude Surges On Yemen Tensions [View article]
    It costs nothing to raise prices, in order to lower them you first have to burn off the higher cost inventory.
    Mar 26, 2015. 10:00 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Crude Surges On Yemen Tensions [View article]
    losbronces, what is clear is that Jordan is now the missing link. Obama will throw them under the bus in no time flat I think.
    Mar 26, 2015. 09:59 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: Crude Surges On Yemen Tensions [View article]
    You gotta love how the political correct Europeans and media are bending over backwards to explain away this plane crash as an "accident". Lufthansa has big problems related to their pilots union concerning exactly this low cost carrier. They want to keep the pay scales separate so the low cost carrier can remain competitive.

    So we have either a disgruntled employee, or, an act of terror. The odds of some health event happening during a 5 minute pee run with the auto pilot likely on seems extremely small.
    Mar 26, 2015. 07:52 AM | 8 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    ER all he hear is over the last 30 or 40 years CEO pay went up X while worker pay didn't keep pace at Y. What no one wants to admit is that in the same time period stocks went up Z and Z is way bigger than X.
    Mar 25, 2015. 03:59 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    DC, I once asked gave an extra bonus question on a test:

    "How many jet pilots does Belgium have and who which country do both of them fly?"

    No one got that right.
    Mar 25, 2015. 03:57 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    As shareholders you are hiring someone to create wealth for you. The question is what is fair compensation or a fair growth rate in compensation for such people.

    While you are right the CEO won't lose money, but s/he can lose their job with only minimal future prospects. Unlike other people in management in the company who when they are no longer promotable simply continue to work and get their paycheck.

    I do not argue that failures should be reward like they currently are through the mechanism of stock options (you have to buy out their options when you fire them that is one reason they get so much money). For that reason I advocate stock that vests over a lengthy time period.

    You can not argue though that a CEO like Steve Jobs who YOU as a shareholder hired and who created $100B's of wealth for you should be compensated for that. Paying him just 1% of the wealth gains would still be cheap. Indeed, if you give your money to a hedge fund manager they get 20% of the profits, Romney got I think 25%.

    So where is your justification for not paying someone for doing a good job for you?
    Mar 25, 2015. 11:07 AM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    The fleecing of the average Joe investor through mutual funds and soon to be ETF's will continue. The next big boondoggle will be these sky high valuations for these private companies that then go public with a small float, get themselves into some major indexes and then dump the rest of the shares into the market while the ETF indexing keeps the price from cratering.
    Mar 25, 2015. 09:00 AM | 4 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    JC, I don't disagree that CEO's should not be rewarded for failure. That is why I think options as a form of compensation need to go and instead executives are given stock that vest over a 10 year time period.

    However the constant drumbeat that CEO's are overpaid is simply ludicrous. Mark Zuckerberg and many of the other owners of companies that went public made fortunes not from being a CEO but from being an owner. If you hire someone to do that work for you, which is what shareholders do, then it is only right that you reward that person in a similar fashion as if he were a surrogate owner.
    Mar 25, 2015. 08:58 AM | 2 Likes Like |Link to Comment
  • Oil Will Bottom In 3 Weeks: A Comprehensive Analysis Of Domestic Oil Production [View article]
    This is a good article that focuses on production. What it fails to take into account is the impact that the contango play will have on supply and demand. Reality is that a contango play requires buying physical oil and storing it (we see this phenomenon in the storage numbers). What we don't see YET is the paired trade that goes with it. Namely the contango players have already sold their oil for deliver 6-12 months down the road.

    So what we have happening now is a big tsunami of oil is going to be hitting the market in a few months and it will likely more than make up for any production peak/reduction we "might" see happening come April. The only thing that can save it is if the contango players can buy back their contracts and resell future contracts for more profits. However with increasing storage costs and at some point a narrowing of the contango that is not that likely to happen.

    Oil prices likely will crash when it becomes clear that the increased demand for the summer months can't reverse the supply/demand imbalance that has been present since the middle of last year (we are now over 1M bpd above those levels of production no less and that is without the contango supply).
    Mar 25, 2015. 08:17 AM | Likes Like |Link to Comment
  • Oil Will Bottom In 3 Weeks: A Comprehensive Analysis Of Domestic Oil Production [View article]
    What is clear is that capitulation will happen before June because it was June last year prices peaked. That means all of the hopium that summer demand will suck up the excess production will meet reality by then.

    The big question then is just how bad is the glut as all of these contango players have already sold their oil 6-12 months down the road. So what happens when all that newly produced oil hits the market and there are no buyers?! Contango started several months ago, the clock is ticking!
    Mar 25, 2015. 08:12 AM | 1 Like Like |Link to Comment
  • Oil Will Bottom In 3 Weeks: A Comprehensive Analysis Of Domestic Oil Production [View article]
    GA, you don't need electric cars. You just need the worlds vehicle fleet to become more efficient and that is exactly what is happening. New government requirements are forcing rapid increases in fuel economy and that means you will see a rapid increase in the average fleet fuel economy for the next few decades as old gas guzzling SUV's are replaced by much more fuel efficient CUV's.
    Mar 25, 2015. 08:00 AM | Likes Like |Link to Comment
  • Oil Will Bottom In 3 Weeks: A Comprehensive Analysis Of Domestic Oil Production [View article]
    He is a trader and any good trader can and will change his opinion on a dime if the trading patterns warrant it.
    Mar 25, 2015. 07:57 AM | 2 Likes Like |Link to Comment
  • Oil Will Bottom In 3 Weeks: A Comprehensive Analysis Of Domestic Oil Production [View article]
    Pre-Katrina the price was well under $40, the price rise above $40 was the aberration not this recent decline. After all, this is the second time prices have dropped from $100+ down to these lower levels.
    Mar 25, 2015. 07:55 AM | 1 Like Like |Link to Comment
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