RE:RE:India or China oils to partner with meg 2015ideaman wrote: 2015ideaman wrote: methinks this may become reality...
meg is up for sale, although they say only partly....meg is attractive, with a good time to partner up and expand over the next 5 years, pipelines are coming and now, not 6 months from now, is the time to look forward....
The volume potential puts meg on anyones potential jv partner list. Meg needs a capital equity investment...to only sell a pipeline is not "rocket sciece" and this could have been accomplished in a few days methinks, does not take 6 months to figure out.
as for meg losing money this last quarter... like all other oils, thats no surprize and its already built into the low share price...
once meg has a viable balance sheet and can forsee the future expansion to 210,000 b/d plus another 110,000 b/d thereafter we will see meg share rise fast.....$18 to $20 is not out of the equation.
oil going back under $40 is hard to believe.....let's assume $60 may see some US shale guys starting up....why would oil go down.......there is no longer any need for oil to go lower, US rigs are still toppling at 9 rigs last week...and banks will likely stay away from the US shale guys, keep a tight leash on them... it's more likely we will see $50 to $57...returning meg to profitability.
I see momentum building for meg and can see a nice jump later this week....
If you sold meg shares at $7.30 on Friday methinks that was a mistake...
cheers...from ideaman
Companies like MEG only sell assets when they have very little cash flow to pay expenses and debtors. Its the last thing you do to try to stave off default. And MEG has over 5-6 billion in debt I will buy meg back in the low 6's. I've kept my profit shares in meg as a hedge in case im wrong. In Any situation, im making money on meg. Whether meg goes down in which I accumulate or if I don't and let my profits ride for eternity. Thats if meg is not going to go broke. Then im break even if all my trading profits are lost. Im not negative on meg, just ideamans price pumping with the wrong facts on the companies health and financials.