Minimize

Welcome!

Opportunities for investors in the energy sector

Cory
December 21, 2016

Today with Chris Temple we first update the ongoing situation with Monte dei Peschi now saying it can not find private investors to save the bank. We then focus on the energy sector with a few idea Chris has for investing in natural gas companies. We believe that energy prices have bottomed and should continue a slow rise through next year.

Click download link to listen on this device: Download Show

Click here to visit Chris’s website and read his newsletter.

Discussion
12 Comments
    CFS
    Dec 21, 2016 21:42 AM

    Off Topic:

    If you don’t think Political Correctness can destroy your country, watch this to the end:

    https://youtu.be/RqaIgeQXQgI

    (there are now documented over 100 police no-go zones in Europe!
    In Germany, Norway, Sweden, England, France, Belgium, Netherlands….. coming to Minneapolis and other US cities soon.)

      Dec 21, 2016 21:48 AM

      Sadly,this is by and large true,i can only speak for Sweden and Germany.
      German police is 10 times more effective than Swedens Police though.
      Swedish Police is a joke.

        Dec 21, 2016 21:35 PM

        Pete – you live in Europe?

          Dec 21, 2016 21:37 PM

          Yes i do,Sweden and Germany 🙂

    CFS
    Dec 21, 2016 21:53 AM

    One of many pension systems that will need a bail-out!

    Feds: NY Pension Official Bribed With Prostitutes, Drugs
    Associated Press – 12 minutes ago
    NEW YORK (AP) — Federal authorities allege that a former official at the pension fund for New York state public employees took bribes that included prostitutes, strippers, cocaine and a $17,000 wristwatch.

    An indictment issued Wednesday accuses Navnoor Kang of accepting bribes totaling about $100,000 in exchange for steering millions of dollars in business to two brokerage firms.

    It says other bribes included travel, a ski trip, and tickets to Broadway shows, the U.S. Open tennis tournament and a Paul McCartney concert.

    Kang’s attorney says her client is not guilty and looks forward to his day in court.

    The comptroller’s office, which administers the New York State Common Retirement Fund, said it is “outraged” by Kang’s alleged “shocking betrayal of his responsibilities.” He was dismissed in February.

    CFS
    Dec 21, 2016 21:59 AM

    On Topic (for a change)

    Obama oil pipeline rules face uncertain future under Trump
    By MATTHEW BROWN and JAMES MacPHERSON – AP – 7 mins ago

    BILLINGS, Mont. (AP) — President Barack Obama’s administration is expected to push through long-delayed safety measures for the nation’s sprawling network of oil pipelines in its final days, despite resistance from industry and concern that incoming president Donald Trump may scuttle them.

    The measures are aimed at preventing increasingly frequent accidents such as a 176,000-gallon spill that fouled a North Dakota creek earlier this month. Thousands more spills over the past decade caused $2.5 billion in damages nationwide and dumped almost 38 million gallons of fuel.
    Fights over pipelines have intensified in recent years, illustrated by the dispute over TransCanada’s Keystone XL plan and efforts by American Indians to stop the Dakota Access Pipeline from crossing beneath the Missouri River near the Standing Rock Sioux Reservation.

    The U.S. Department of Transportation proposal covers roughly 200,000 miles of lines that crisscross the country and carry crude, gasoline and other hazardous liquids.

    Environmental and safety advocates have criticized the agency’s commitment to tightening oversight of that network after a key safety feature — automatic valves that quickly shut down ruptured lines — was omitted from a draft rule published in 2015.

    Further revisions sought by the petroleum industry could make the rule largely ineffective, said Carl Weimer with the Pipeline Safety Trust. But keeping the proposal intact would expose it to a legal challenge or reversal by a Republican-controlled Congress and Trump, an enthusiastic advocate for fossil fuels whose administration would enforce the new safety provisions, Weimer added.

      Dec 21, 2016 21:31 AM

      OBAMY IS WORKING ON HIS KICKBACKS…which he will receive after he pushes through any deals prior to his departure………………..thank goodness only 30 days and the BIG ZERO IS HISTORY.

    Dec 21, 2016 21:18 AM

    WTI crude to 89 by 2020,then down to 15-18 by 2023.
    EW forecast,
    ?
    Maybe,perhaps,why not

    Dec 21, 2016 21:25 AM

    I think Monte Peschi will be nationalized and become the central bank of Italy. Then they can sell the non performing paper and get out of debt, and start using the lira in country. They can use lira against the SDR rate of the euro for trade.
    Problem solved- easy peasy.

      Dec 21, 2016 21:16 PM

      That could be just what happens. Thanks for the succinct run down!

    Dec 21, 2016 21:47 PM

    Canadian Overseas Exploration Limited XOP (TMXmoney.com), XOP.WT, XOP.WT
    Exxon Mobil invested $120MM for a 17% stake in a Block offshore in Liberia.
    The well just reached TD (Total Depth) and they didn’t strike an economic deposit of oil, which is a polite way of saying the well was a dud.

    So shares plummeted from $0.12 to $0.03 over -80% drop.
    Its year high was $0.18 and it’s high at peak of 2014 when oil was over $100 was $0.35

    Exxon isn’t likely to walk away. At the moment its a bad week for XOP. For people who like OPM (other peoples money) some serious buying and selling is happening on XOP.

    The narrative around closing offshore drilling by Obama around alaska and the texas gulf, is what it is. The narrative around bonds rising and getting inflationary… if the rates take off and the bond market goes pop, what will people flock to… the reality that capital gets harder to get, free money is over, could send energy on a tear, after the fed faces reversing course. Oil in the ground or soon to be found may be re-thought by financial folks as to what its really going to cost to add a marginal barrel in the next 4 years (trumps term)… So with a war on cash, and flexing USD rates, oil is very volatile potentially by mid 2017… so if, if, if you connect the dots certain bad days for oil explorers like XOP could be a huge gift.

    In effect to buy low, you have to actually buy low. Then wait. In this case you don’t get paid to wait. However the warrants are on sale for nearly free, if you can stomach the risk you can buy the stock and the warrants if you think the risk/reward will play out before next summer.. A small bump up in the stock will easily pay for the warrants and you can thin your exposure when you get a bump in the shares. The end of march is the likely timeframe that the global banking will be either in trouble and by extension the markets will be in trouble too.

    So the financings are done usually at the oil show in June, and if Exxon is going to kick the next project into gear, it would likely be announced by the oil show, if not you might unable to unload a large position.

    Somebody is buying alot of share at the bottom. I think its worth a look for oil savvy risk tolerant folks, yes its gamey but clicking a button is much less risky that Exxon and XOP have placed real numbers on the line and this well wasn’t a success but the value is still that work was done and dollars sunk into a project that moved the needle to obtain data that might lead to a home run in a year or two.

    Energy is very timely. This tax loss season, take time find little known gems on sale. Treasure is out there and it sometims looks like trash until you get in and dig around a little.

    Best of holidays to all.