As the debate over liquefied natural gas exports rolls on, many investors have become intrigued at the idea of investing in U.S. LNG. As far as stock market opportunities go, the only company in the States with all the necessary approvals for such exports is�Cheniere Energy� (NYSEMKT: LNG ) . If you haven't been following the company, you may have some questions not only about Cheniere itself, but also about how it fits into the global LNG picture. That's why�we created a�premium report�on the company,�to help guide investors on whether or not Cheniere merits consideration for their portfolios.�
Following is an excerpt from the report, which focuses on the company's main risks. It's just a sample of one section, but we hope you enjoy.
Risks
In order for it to be worthwhile for Cheniere to export LNG, the company needs to beat what it estimates are delivery costs of $8.85 and $10.60 per mmbtu in Europe and Asia, respectively�. That model is built on several assumptions, however, including the price of the U.S.-produced gas that Cheniere must purchase, and shipping costs, not to mention the price gas is selling for in target markets. The import price of natural gas in Europe has ranged from a low of $9.36 to a high of $11.97 per mmbtu over the past two years, while Japan has seen prices hit a low of $11.45 and a high of $18.11 per mmbtu over the same period. The price of gas in the U.S. ranged from $2.00 to $3.50 in 2012. The opportunity is obvious, but markets are unpredictable beasts; if the global price of natural gas drops too low, or the domestic price of natural gas climbs too high, Cheniere's margins will suffer. Cheniere will face stiff competition for export customers. Though the Department of Energy has not made final decisions on issuing LNG export permits to many other American companies, domestic foes are not the most serious threat to Cheniere�. Right now, the company's real competition comes from the foreign giants that dominate the natural gas export scene. Remember, Cheniere is not just competing against other LNG programs, but all natural gas shippers outside the U.S., and that includes pipeline shippers like Russia and Turkmenistan. The world's top five exporters -- Qatar, Australia, Iran, Russia, and Malaysia -- all have significant natural gas reserves. Combined exports from those countries are expected to reach at least 220 million tons per year by 2015. While world demand is expected to outpace that figure by 2020, there are no guarantees with regards to demand or price environment that can ensure Cheniere's success at this time. Cheniere has a pretty long history of failure. The company hasn't been profitable in a decade. Originally founded as an oil and gas explorer and producer in 1996, it switched to importing and regasification in 2000, before finally making the decision to attempt to export when it formed Sabine Pass LLC in 2010. Debt began to balloon in 2005 and total long term liabilities are now hovering around the $2.5 billion mark. Its financial situation is definitely a risk.Looking for more guidance
That was just a sample of our new premium report on Cheniere Energy. If you're weighing whether the company�is a�buy or sell, the report is an essential resource for investors seeking more information on the company. Not only that, but the report comes with updated quarterly guidance and dives into upcoming catalysts on the horizon. To get started, simply�click here now.
Top Energy Companies To Buy Right Now: GulfMark Offshore Inc.(GLF)
GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas. The company?s vessels provide various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure. Its vessels transport drilling materials, supplies, and personnel to offshore facilities, as well as move and position drilling structures, and provide anchor handling and towing services. The company?s fleet includes anchor handling, towing, and supply vessels; fast supply vessels; platform supply vessels; specialty vessels, including towing and oil response; and small anchor handling, towing, and supply vessels. GulfMark also offers management services to other vessel owners. As of April 27, 2011, its active fleet included 74 owned vessels and 15 managed vessels. It primarily serves integrated oil and natural gas compani es, large independent oil and natural gas exploration and production companies working in international markets, and foreign government-owned or controlled oil and natural gas companies, as well as companies that provide logistics, construction, and other services to such oil and natural gas companies and foreign government organizations. The company primarily operates in the North Sea, Southeast Asia, and the Americas. GulfMark Offshore, Inc. was founded in 1996 and is based in Houston, Texas.
Advisors' Opinion:- [By Brian Stoffel]
Rising Star Jason Moser made a bold call on this small-cap energy stock. What exactly does GulfMark do? According to Jason, "[The company] helps oil and gas companies not only find and extract new supplies, but also stay safe in the process."
Quite simply, GulfMark isn't in the business of actually extracting oil from under the ocean floor. Instead, it focuses on "jobs such as transporting materials, supplies, and personnel, as well as positioning drilling structures," he says.
The stock is down 28% since hitting its high back on July 25, so it's definitely worth a look.
Top Energy Companies To Buy Right Now: SilverCrest Mines Inc (SVL)
SilverCrest Mines Inc. (SilverCrest) is engaged in the acquisition, exploration and development of mineral properties in Mexico and Central America. The Company�� principal focus is the development and operation of the Santa Elena Project, which property consists of seven mineral concessions totaling 2,726.54 hectares, portions of which include the producing Santa Elena gold and silver mine located northeast of Hermosillo, Sonora State, Mexico. It operates in three segments: the mine operations at Santa Elena, Mexico; mine exploration and evaluation projects at La Joya and Cruz de Mayo, Mexico, and Corporate. The Company is also focused on exploring and developing its La Joya Property located in Durango, Mexico, which contains a discovered polymetallic deposit. The Company�� other mineral properties include the Cruz de Mayo Project (Mexico), the La Joya Property (Mexico), the Silver Angel Project (Mexico) and the El Zapote Project (El Salvador).Top 5 Small Cap Stocks To Invest In 2014: EcoloCap Solutions Inc (ECOS)
EcoloCap Solutions Inc. (EcoloCap), incorporated on March 18, 2004, is a development stage company. The Company is an integrated network of environmentally focused technology companies that design, develop, manufacture and sell cleaner alternative energy products.
The Company through its subsidiary Micro Bubble Technologies Inc. (MBT), developed and manufactures M-Fuel. The Company also developed the Carbon Nano Tube Battery (CNT-Battery), and the Nano Li- Battery both recyclable, rechargeable batteries. MBT has also developed a process that blends non-miscible liquids (oil and water) on a submicron level in order to create a non-emulsified fuel product that it calls EM-Fuel.
Top Energy Companies To Buy Right Now: Caiterra International Energy Corp (CTI.V)
CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.
Top Energy Companies To Buy Right Now: Hanwha SolarOne Co. Ltd.(HSOL)
Hanwha Solarone Co., Ltd., an investment holding company, engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. The company also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services. It sells its products to solar power system integrators and distributors primarily in Germany, Italy, Australia, the United States, the Czech Republic, Spain, and China. The company was formerly known as Solarfun Power Holdings Co., Ltd. and changed its name to Hanwha SolarOne Co., Ltd. in December 2010. Hanwha Solarone Co., Ltd. was founded in 2004 and is based in Qidong, the People?s Republic of China.
Advisors' Opinion:- [By Sherry Jim]
Hanwha SolarOne Co., Ltd.(NASDAQ: HSOL) closing price in the stock market Tuesday, Jan. 3, was $1.06. HSOL is trading -15.30% below its 50 day moving average and -67.04% below its 200 day moving average. HSOL is -89.16% below its 52-week high of $9.78 and 16.48% above its 52-week low of $0.99. HSOL‘s PE ratio is 1.64 and its market cap is $89.18M.
Hanwha SolarOne Co., Ltd. is an investment holding company which engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. HSOL also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services.
Top Energy Companies To Buy Right Now: WaterFurnace Renewable Energy Inc (WFIFF)
WaterFurnace Renewable Energy, Inc. specializes in the design, manufacture and distribution of geothermal and water-source systems. It�� the United States subsidiary companies are WaterFurnace International, Inc. (WaterFurnace) and LoopMaster International, Inc. (LoopMaster). In December 2010, it incorporated two Australian subsidiaries: WaterFurnace International Asia Pacific Pty. Ltd. (WaterFurnace Asia Pacific) and Hyper WFI Pty. Ltd. (Hyper WFI). WaterFurnace designs, manufactures and distributes geothermal water source heating and cooling systems for residential, commercial and institutional buildings. LoopMaster installs geothermal loops for residential applications, does commercial conductivity testing and provides design and installation assistance. Hyper WFI designs, develops and builds devices that limit the inrush current, which electric motors draw upon start up. On January 21, 2011, the Company acquired inventory and fixed assets from Binary Engineering Pty. Ltd. Advisors' Opinion:- [By Tom Konrad]
Waterfurnace has appeared in my annual picks several times over the years because they are a pure-play leader in geothermal heat pumps, which the US EPA calls "the most efficient way to heat and cool a building." Heat pumps have a high up-front cost, and so they benefit from low interest rates and a high price of heating alternatives, such as natural gas. Recent low natural gas prices have been hurting Waterfurnace's business, which has recently driven the stock price down and brought the dividend yield up to a very attractive 6.74%.
No comments:
Post a Comment