by Travis Johnson, Stock Gumshoe | August 9, 2013 7:00 am
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Glad to see your comments on Input Capital. I am an original investor in the Input Capital LP and have waited with interest for it to trade publicly. Canola farming has become huge in Saskatchewan over the past 10-20 years. Where we used to see nothing but wheat, oats and barley for miles and miles we now see oceans of yellow canola flowers. Canola has proven to be a very lucrative crop for farmers and I expect it to be a very lucrative crop for me as well.
I was reading Gaslog ‘s Key statistics on Yahoo finance and it seems the stock is a few dollars cheaper then its enterprise value . Am I correct or is my lack of experience really showing ?
As far as LNG Exportation, THAT’S where the $$$ is right now in NATGAS. Currently, (DOW) is making a killing off of our absurdly cheap domestic $3.50/mmc2, using heavy lobbying to prohibit and at the very least minimize the number of licenses for export terminals given, while we could be using this pricing arbitrage situation to our advantage and selling it for 4-6X it’s nominal price to Japan, S. Korea, and other Asian markets (China and India specifically). Fortunately, the US Government issued a third license to export, the first went to Cheniere (LNG). Second came one that went to a private company called Freeport LNG. Freeport LNG has been authorized to export up to 1.4 Bcf/d (billion cubic feet per day) of natural gas for the next 20 years. It is expecting to commence construction in late 2013 and anticipates a construction schedule of approximately four to five years to completion and start-up of the liquefaction project which is currently envisaged to occur in 2017. LNG export projects face several regulatory hurdles, including long-delayed time for study and grant of licenses by several agencies like the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE). On May 17, the DOE reported that it approved the Freeport LNG Expansion and FLNG Liquefaction project to export LNG to countries without a free trade agreement with the U.S. ConocoPhillips (COP), who owns a 50% interest in the general partner entity responsible for managing construction and operations of Freeport LNG and has agreed to provide a substantial majority of the debt financing for the 1.5 Bcf/d Freeport LNG facility. Most recently, they gave my favorite ‘streamer’ MLP, (ETP), a license to use the same passage that (LNG) has been working on, called the Sabine Pass located in Louisiana, which will be up and ready to rock beginning in 2015! Dominion Resources (D) has been fighting for a license since October of 2011, and FINALLY got passage/licensure for THE Dominion Cove Point. Cove Point LNG Terminal is one of the nation’s largest liquefied natural gas (LNG) export terminals, and won’t be ready until 2016. Dominion Proposes to Construct Liquefaction Facilities for Exporting LNG. Cove Point LNG Terminal is located on the Chesapeake Bay in Lusby, Md. means a straight shot to European markets, but I’ve read in many journals/blogs that our GOV’T plans to give no more than 6 publicly traded U.S. companies such licenses? Cheniere has a 6PLUS% yielding MLP, ticker (CQP),and I like that play for income investors, although, given the fact that Sabine opens first, and Cheniere Energy (LNG) is the main benefactor, I’d want to own at least 2-3X as many shares in (LNG) vs (CQP)….Finally, the company Chart Industries (GTLS) is really poised to blow up over the next 12-18 months,not that it hasn’t shredded the market over the last 2 years, as it is hands down the best play on shipping the NATGAS at 267 degrees below zero and then converting it back to room temp in the form of LNG. GTLS, in other words, has tremendous MOAT,and thus, enormous upside in this most obvious of arbitraging situations!