• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 54 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 7 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 2 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 6 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 mins Starvation, horror in Venezuela
  • 7 hours China goes against US natural gas
  • 7 hours Western Canada Select price continues to sink
  • 6 hours Corporations Are Buying More Renewables Than Ever
  • 4 hours Are Trump's steel tariffs working? Seems they are!
  • 15 mins The Discount Airline Model Is Coming for Europe’s Railways
  • 4 hours Is NAFTA dead? Or near breakthrough?
  • 5 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 5 hours Saudi Fund Wants to Take Tesla Private?
Alt Text

Clean Energy Stocks Outperform Oil And Gas

Green energy stocks saw tremendous…

Alt Text

Why Wall Street Is Bullish On Refiners

Wells Fargo has noted that…

Alt Text

Yieldcos Are Back And Better Than Ever

Yieldcos have had a rocky…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Buy when a Lynch Mob is About to Hang Them From the Lamp Post

You know my preference for buying country funds when there is blood in the streets.
The corporate equivalent of that maxim has to be to buy when a lynch mob is about to hang them from the lamp post.

That certainly is the case with Transocean (RIG), which is catching all the blame for the Gulf oil spill. But a few energy hedge fund managers I know have been going through the company's contract with British Petroleum (BP) with a fine tooth comb, and it turns out that the latter agreed to indemnify RIG for any accidents, including spills.

Unless BP can prove deliberate fraud or negligence, the cost of the entire disaster is going to come out of its pocket.

I know the management of RIG fairly well, as I once negotiated to participate as a partner in another offshore project. In the end, I didn't go ahead because the $10 million minimum bite was more than I was willing to lay out.

But you'll never find a finer and more professional team in the oil patch. The company has a net asset value of $106/ share, which makes its current price of $52 a once in a life time steal.

It has a $28 billion order backlog to tap offshore fields in places like Brazil, which will generate $10 billion of free cash flow over the next three years.

Buy at first news of a successful capping of the underwater well. How will you know when this is happening? Just click here for the link for live video taken by  BP's remotely operated video at 5,000 feet down in the Gulf. Don't you just love the Internet?

Article courtesy of: The Mad Hedge Fund Trader




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News