RE:PGR conf call
I didnt think the needle would move on the share price until the May earnings report but with the quick closing,I can see dawn breaking in February.
The conference call was very enlightening.The CEO is trying to telegraph his next move but the analysts are just too stupid and lazy to figure it out.They dont do their due diligence so they ask simple questions.The CEO has to give them answers to questions the analysts are too backward to ask.I saw one analyst write that he wonders where Tidewater will get customers from after the 5 year deal with Husky expires. lmao.
I see there is discussion on other boards about the US shale industry imploding with low oil prices.That's not going to happen.When crude is cheap,the supplies are even cheaper and the margins are solid.When crude hits$80,the industry will implode within a year as the rising costs wipe out their profit margins and they default on the debt.A lot of people are going to be surprised.Sorry,I digress.
Regarding Joel's discussion of tolls,one analyst asked him if there was a precedent for this pricing mechanism in the market.And Joel responded no,he was not aware of a precedent.Well,Enbridge is in the midst of converting their pipeline network to contract service from a monthly spot.Enbridge is accepting bids for 8-20 year contracts for priority transport on the Mainline,with discounts available on contract length and volumes.In late September,the Canada Energy Regulator halted this process until they approve the terms and conditions.
So,if Joel did not hear about tolls from Enbridge,where did he get the idea from?In a recent published interview(within the last week),someone was asked about their relationship with the Prince George Refinery.
Q:"Is that related to your project?Do they compete with you?
A:We're going to have about 20% condensate that we'll extract from the pipeline.We'll be complimentary.I've already met with them(TWM) and their CEO already invested in my last company.
Q:What was your last company?
A:Nauticol Energy,a methanol project in Grande Prairie,Alberta that is in development right now.It has some support from the Alberta government.
You see....Joel is playing chess and the analysts are playing checkers.