I definitely don't see it as overvalued... and now the CEO is pretty darn excited about investing in natural
gas assets now that everything is really cheap.
Not exact matches
Also, notwithstanding a silly fiscal policy and the ongoing political impasse, the U.S. economy has some very good things going for it
now, as even king of doom, Nouriel Roubini, couldn't help but note: the Fed is going to stick to its
asset - buying regime for the foreseeable future, providing a monetary protein shake the recovery still very much needs; the housing rebound is well on its way, which is helping Americans rebuild their wealth and is boosting employment in many states with high jobless rates; and the shale oil and
gas revolution continues to power investment, job creation and revenue growth.
Paramount
now deals with both oil and
gas, and has since spun off
assets into separate companies, such as heavy - oil player Cavalier Energy (in 2011).
May 3 - Rising costs start to squeeze American businesse CNN Money May 3 - Home Prices Jump Again And «$ 3
Gas Is Coming» Dollar Collapse May 3 - Gold price claws its way higher on Fed meeting and geopolitics Gold - Eagle May 2 - Q&A on SS Central America Gold Coins CoinWeek May 2 - Goldman says case for owning commodities has «rarely been stronger» than it is
now CNBC May 2 - Gold, Silver See Corrective Bounces Ahead Of FOMC Statement Kitco May 1 - Gold Eagle Sales Still Faltering While Mining Output Collapses — Perfect Storm Daily Coin May 1 - Relentless USD Rally Is Precious Metal Kryptonite GoldSeek Apr 30 - Venezuelan Inflation: The Demise of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold:
Asset, Commodity, Currency Or Collectible?
I'm wondering whether some or all of the Compton Petroleum
assets might
now be disposed of as natural
gas extraction doesn't really seem to fit in with the MFC's stated corporate mandate.
What I can say from a strategic perspective is that 1) I like a purchase of
assets at historically low prices, 2) MFC has some expertise in the commodity business so this isn't completely outside their playing field, 3) perhaps, worst case, there could be a strategy to purchase the
assets in bulk at a distress sale and then sell them off piecemeal for a profit, and 4) while this may be a role of the dice (who knows where
gas prices will be a year from
now) MFC is not betting the ranch; the total investment will be about CDN $ 75 million ($ 33 for the outstanding shares, $ 8 million for the warrants, $ 30 million additional investment and I've estimated $ 4 million for transaction costs), or less than 25 % of MFC's current cash hoard.
I may have enough
assets now to cover them if I were to liquidate them all, but technically I'm worth more dead that alive, since there's no guarantee that I won't killed by a meteor or
gas explosion today.
Corporations like Dominion Resources and Duke Energy are investing in
gas transmission pipelines and
gas generating plants only because they think they can profit from them
now, and force captive utility customers to bear the cost of paying off the worthless
assets later.
Investors in oil and
gas companies have been in the dark about their exposure to climate risk, but they will
now be able to confront companies with precise information and ask hard questions about how they intend to deal with potentially stranded
assets.»
As we reached the record low
gas prices of 2012, other utilities had to ask questions they had never contemplated before: Were they holding coal
assets that were
now a lot more expensive than their value?