"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder


Tuesday, July 11, 2017

The Longfellow Letter

A Watchlist of Interesting Stocks
Free Sample, Issue #4
See: Comments Section

1 comment:

Charles Longfellow said...

THE LONGFELLOW LETTER
A Watchlist of Interesting Stocks

Subscription: $19/quarter, Published Weekly
Disclaimer: The Longfellow Letter is not a recommendation to buy or sell stocks. Risks inherent within trading include flash crash, algorithms, front running, slippage and human error. The stocks presented may be of interest to students of the market, or active traders assuming their own risk. The author may have positions, or active interest in any of the stocks mentioned. The author has blogged since 2008 at tradingwellandliving.blogspot.ca. E-Paper Daily: Junior Cereal, Micro Cap Trading & Investment News. Visit: https://paper.li/ethicalcrow/1499540561#/

Issue #4,
July 11, 2017​

Interesting Stock of the Week: Clean Energy Fuels Corp. (CLNE)
Price: 2.​73​

Natural Gas
Long term service agreements in place. Public Transit.
See Video: Clean Energy is the Driving Force of America
https://www.youtube.com/watch?v=o2O53fuM-9Q

Past Picks Hold: GORO, in profit from 3.97; BSTG even at .45

Past Picks Sell: SSN

Guest Commentary:
Dave Forest, Pierce Points
http://piercepoints.com

Small but potentially very important item for oil and gas explorers this past week. With the U.S. government making drilling much more attractive in one of the world’s go-to petroleum destinations.

The Gulf of Mexico.

The US Bureau of Ocean Energy Management (BOEM) announced last week it is lowering royalties on oil and gas production in the shallow water Gulf of Mexico. With rates set to drop to 12.5%, from a current 18.75%.

The revised rates will apply to wells drilled in less than 200 meters water depth. With deeper-water wells continuing to command the 18.75% royalty.

Changes in royalties will apply to all new wells in shallow water going forward — but will not be applied retroactively to existing projects.

BOEM noted that “hydrocarbon price conditions and the marginal nature of remaining [Gulf ] shelf resources suggest a royalty rate reduction is an appropriate and timely action.” Which makes sense, given the agency saw bids on shallow water acreage last year fall by more than 90% as compared to 2014.

The government is thus trying to bring drillers back to the shallow Gulf by offering better fiscal terms.

Of course, one of the biggest drivers here is President Trump’s “energy dominance” platform. Which he has been pushing to agencies across the U.S., in a drive to streamline and promote new drilling for oil and gas.

This week’s move is almost certainly an offshoot of that presidential pressure. And thus may represent the first big investment opportunity to come down in natural resources because of Trump’s election.

For E&Ps, the lower royalties could indeed create opportunities. With overall government take in the Gulf of Mexico already having some of the lowest rates globally.

Drillers here were having good success prior to the collapse in oil prices. With the shallow water region even seeing a boom in private equity investment, pouring billions into projects here.

This week’s royalty change could bring back some of that investment excitement. Watch for the industry response during upcoming Gulf of Mexico bid rounds — with the next round scheduled for August 16.

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What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?


"... internalization hurts retail customers and market quality"

see: EconPapers

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