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jsw3

jsw3
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  • Analysis Of Syntroleum's Conference Call [View article]
    Your question about sensing tension between SYNM and TSN struck a cord, I believe. The agreement says TSN is to acquire the feedstock and provide the logistics for delivery. In the agreement , TSN is anticipating revenues from 500m plus pounds of feedstock per year...presumably mostly from their plants. That's not small potatoes. SYNM is interested in maximizing profit for themselves to generate cash flow to fund future project ambitions. What if there is a more profitable non-TSN sourced feedstock? Could single user revenues for 500m pounds of feedstock be more important to TSN than $20-$40m profits as their share from DF? Could we have a situation of conflicting objectives and a stalemate leading to a game of chicken? How could SYNM possibly withstand the stalling capabilities of TSN's superior financial strength for restarting the plant? Would SYNM consider sale of it's dormant DF share to free cash to pursue participation in other exciting JV areas rather than raising $ with further stock dilution?
    Aug 8 11:24 PM | 1 Like Like |Link to Comment
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