Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Filling Up On Energy Bargains
Ken Kam; Marketocracy Marketscope, 10.14.05, 11:30 AM ET
(The biggest returns will be for the "Risk Takers" in the small growing companies like TDYH, IMO...)
SAN FRANCISCO, CALIF. - I never like paying too much for gas or for stocks. With gas prices well above $3 in California, I’m always looking for gas stations with the cheapest gas. It’s the same with energy stocks.
For months, I’ve been telling you that energy stocks should be a big portion of your portfolio. They are the most strategic component and are smart risk management as a hedge if the economy takes a dive from high oil prices. But if oil prices continue to rise without slowing the rest of the economy, this will be your best performing sector again.
In May, when oil prices dropped 18% and most “experts” were declaring that the oil run was over, I told you to load up. Since then, oil prices have jumped 41%. Now, we’re seeing a similar pullback as some people take profits. But, the same supply/demand imbalance and the minuscule supply buffer problems we’ve talked about still exist. So, as prices fall, this is a great time for you to pick up some energy stocks at a good price.
Like gas stations, some energy stocks are cheaper than others. Let me tell you about three types of energy stocks I’m most excited about.
Safe ways to find oil.
Some companies drill in the deepest oceans and deal with unstable and unsavory governments to find new oil fields. But higher oil prices are making it profitable to explore for oil much more safely--in fields that were previously considered exhausted.
It turns out there is a lot of oil left in an “exhausted” oil field. When the price of oil is less than the cost of extraction, an oil field is considered exhausted and the proven reserve for that field is set to zero. However, when the price of oil rises above the cost of extraction, magically, the oil reserve reappears on the balance sheet.
At today’s oil prices, a lot of exhausted oil fields are economic again. Oil companies, especially those with a high percentage of exhausted oil fields, have been able to increase their reserves without looking any further than their own books. Companies like Chevron (nyse: CVX - news - people ), Exxon Mobil (nyse: XOM - news - people ) and ConocoPhillips (nyse: COP - news - people ) have a lot, and their stock prices already reflect that.
Today’s oil prices are spurring a lot of activity to reopen old fields. It makes a lot of sense to drill where you know there is oil: You have a pretty good idea of what it will take to get it out of the ground, and you already have the infrastructure needed to get the oil to market.
So, a better investment is in the companies that provide the services needed to get exhausted oil fields back into production. They are doing a booming business. Here are a few of my favorites.
Houston-based Grey Wolf (amex: GW - news - people ) is a contract driller, operating primarily along the Gulf Coast and into Oklahoma. Grey Wolf has already put back on line 37 of its 40 rigs that had shut down due to Rita. The stock is up 50% in the past year and trades well below its 52-week high of $8.60 hit on Sept. 30. The company’s market capitalization is $1.4 billion.
San Antonio-based Pioneer Drilling (amex: PDC - news - people ) is a contract driller, but does its business on land in Oklahoma and throughout Texas and the Rocky Mountains. Being land based allows Pioneer to benefit from higher oil prices, but buffers it from the shutdowns and service interruptions that plague drillers on marine platforms. The $705 million market-cap company is up more than 100% in the past year.
Refining profits.
For decades, the refining industry has been only marginally profitable. But late last year, when capacity utilization for the 148 active refineries in the U.S. started to push above 90%, it was easy to see that if the economy grew much at all, or if there were any outages for any reason, refining capacity would become a bottleneck and profit margins would greatly improve.
The hurricanes knocked 13 refineries offline and Wall Street is now abuzz with talk of the shortage of refining capacity. Some of our largest holdings and biggest winners this year are refining companies and they have performed exceptionally well. Valero (nyse: VLO - news - people ) recently acquired Premcor (nyse: PCO - news - people ) to become the largest refiner in North America. Since the beginning of the year, Valero is up about 135%. Shareholders of Premcor who accepted Valero stock in the merger are up 120% this year. The transaction leaves Tesoro (nyse: TSO - news - people ) as one of the few large independent oil refiners left. Tesoro is up 86% this year, but its below market P/E ratio of 14 makes it a potentially juicy acquisition candidate.
No one wants to live near a petroleum refinery.
Every time someone proposes to build a new refinery, citizens’ groups are formed to file lawsuits under federal environmental laws and state regulations to halt construction. They have been so effective that no new refineries have been built in the U.S. since 1976. Rather than try to run the regulatory gauntlet to try to build a new refinery, it’s been safer, cheaper and easier to buy an existing one. This does not result in any new capacity coming online, but every time an acquisition occurs it seems to establish a new and higher value for existing refineries.
The price gap between sweet and sour crude is widening.
A big reason why Valero has been so profitable is because it is one of the largest refiners of heavy “sour” crude. Valero decided long ago to go after this segment of the market, and it has turned out to be a brilliant strategy. Why? Because there is a widening price gap between heavy “sour” crude and light “sweet” crude. The price gap has ranged between $9 and $20 this year and is currently over $15 per barrel. Last year the price gap averaged around $11, and in 2003, it was only $7.
Refiners churn out the same end products (gasoline, heating oil, distillates, etc.) using either feedstock, but not all refiners have the equipment to process heavy sour crude. That costs a little more (it costs Valero only $1.5 to $2 more for refining sour versus sweet), but those that can are cashing in on the price difference and their stock prices reflect that.
The price gap is widening because there is a big supply/demand imbalance. The vast majority of the world’s oil reserves (75%) are sour crude. Only 25% is sweet, but most of the current oil production (40%) and most of the world’s refineries are geared to sweet. In China, where much of the growth in oil demand is generated, 80% of refining capacity is dedicated to sweet crude. When OPEC turned on 2 million barrels a day of excess production, the world’s refiners turned their noses up because it was largely sour crude.
The big shortage is of sweet crude--that’s where demand is growing, and that’s the price of oil we see announced. In fact, OPEC recently announced that worldwide production of sweet crude may have peaked and is now on the decline. Meanwhile, the world is awash in supply of sour crude without many refiners able to process it. It will take a long time for refining capacity to change.
So, with growing demand for gasoline and other refined-oil products driving the prices and profits for all refiners upward, and with companies like Valero reaping the rewards of a widening price gap between sour and sweet on the upstream side, sour refiners like Valero are going to continue their monster returns.
Energy demand isn’t going away, so the largest portion of your portfolio should be in energy stocks. Take my advice and fill up on some cheap energy stocks while their prices fall back.
Excerpted from the Oct. 2005 issue of Marketocracy Marketscope.
Doubloon...any thoughts on TKGN? I think it was one of your take-a-looks. Had a reverse split this month... 7.7M OS and float only 711K!! 800M authorized, though....
Info from Pink Sheets:
TKGN -- Tekoil & Gas Corp.
Com ($0.000000001)(New)
Address:
25050 I-45 North
Suite 525
The Woodlands, TX 77380
USA
Phone: 281-364-6950
Fax: 281-364-8007
Business Description:
Oil and Gas Exploration and Development
State of Incorporation: DE
Year of Incorporation 2002
Officers:
Mark S. Western, Chairman, Pres. & CEO; Frank Clear, Dir. & COO; Gerald Goodman, Dir. & CFO; Richard Creitzman, Dir.; Eric Ottens, Executive VP
Fiscal Year End: April 30
Edgar Filing Status: Non EDGAR Filer
Outstanding Shares: 7,722,000 as of 2005-10-14
Estimated Market Cap: 3.861M as of 2005-10-20 (based on Outstanding Shares as of 2005-10-14)
Authorized Shares: 800,000,000 as of 2005-07-20
Float: 711,200 as of 2005-10-14
Number of Shareholders of Record: 348 as of
Current Capital Change:
shs decreased by 1 for 100 split
Ex-Date:
Record Date:
Pay Date: 2005-10-14
Dividends:
Company Notes:
Formerly=Glow Bench Systems International, Inc. until 12-04
Formerly=Pexcon, Inc. until 7-05
Transfer Agent:
Holladay Stock Transfer, Scottsdale, AZ 85251
Again, again....and again????
Posted by: Jagman
In reply to: 4tj who wrote msg# 11108 Date:8/17/2005 5:39:55 PM
Post #of 11641
4tj, it was only 200 shares at the close at 0.039, I don't think it's a good indicator for coming news. Maybe an MM has a bunch of shares to sell and a message to other MM's to raise the pps to attract buyers tomorrow. That has happened a lot in the past, big volume day and close even or down.
Daytraders :--)).....eom.
Doubloon. how 'bout getting an 800 number so I can call you instead of Cramer!!! Thanks for the info!!!
stockmeister, I don't even know how I got to be a "Premier Member"!!!! All that spam goes to my "bulk" mail!! LOL!!!
AACS...President's letter....BS??? He has a history of it, see what the market thinks....
President's Letter - October 20, 2005
Greetings to the family of shareholders in American Commerce Solutions, Inc. I appreciate each of you, whether you have been with us for ten years or ten days; whether you own millions of shares or hundreds of shares; whether you contribute positively or negatively to the ‘chat’ about our past, present or future. Why? If you only own one share of stock, you are family. No matter what you have to say, it is important because it represents at least one perspective and unless something changes, you will be guided by that perspective, right or wrong. Someone brilliant once said, “ Perception is the reality of the ignorant.” Without proof to the contrary, we are led by our perceptions.
ACS has been perceived in many ways over the years, but I won’t waste your time with histrionics. We cannot change our history. I have been involved since mid 2000 and have been integrally involved in virtually all major decisions, so I can’t talk about things that ‘they’ might have done, because I am ‘they’. I will instead take responsibility for and ownership of our current condition and the plans that exist. We are in exciting times at ACS.
For over three months we have endured and suffered through a primarily, self-imposed black out of any news related to our on-going negotiations and plans. There were several reasons for not disclosing the details. The most significant was the fear of being accused of ‘hyping’ so that the stock price would rise. Although I am more typically accused of being too conservative rather than exaggerating the details, Sarbanes-Oxley has added a new dimension of concern for those of us in corporate leadership. The penalties can be stiff and defense of a position can be costly to individuals, company and shareholders. I choose to err on the side of caution. That being said, I will attempt to disclose enough information that will strike a delicate balance until specifics can be revealed.
American Commerce Solutions, Inc. has two, wholly owned, subsidiaries; International Machine and Welding, Inc. (IMW) and Chariot Manufacturing Company, Inc.(Chariot). Most investors in ACS consistently express their enthusiasm for Chariot because of what is viewed as their explosive potential in motorcycle trailer sales. IMW has been recognized primarily for its strong asset base and as the means to an end: support Chariot until it has a breakthrough. However, those of us in management do not share that perception. You see, although IMW was incorporated in 2000, these assets and employees have been together for almost 30 years in this market! Assets, revenue, experienced employees and solid management are present at IMW. This is a solid, worthy company on its own. Chariot is not ultimately a motorcycle trailer company, only.
Chariot has been and is morphing every day into the ultimate, premier fiberglass leisure products company. Although Chariot is also approaching 30 years as a premier trademarked company, it is constantly adding and/or modifying its tooling and product lines to achieve the right combination to efficiently and profitably produce and market. Hundreds of thousands of dollars have been spent over the past twenty-four months in order achieve this objective. The second quarter and the first month of the third quarter (September) were used to orchestrate specific changes, while new sales were halted to focus on production improvement. In the last three weeks, proposals/quotes for over $300K in trailers alone have been submitted! Boats, cars and van tops are in constant demand and could eclipse trailers in dollar volume sales. The specific details of ‘what’s happening at Chariot’ are being left for a Letter to The Shareholders on the Chariot website at the end of this month, as noted in our last press release.
Approximately four months ago, I entered into negotiations with two other publicly traded companies with the expressed purpose of exploring mutual opportunities. These unnamed companies operate in the energy field, currently the area of choice with the escalated prices of gas, oil and coal. Negotiations are ongoing. Although preliminary understandings exist, they are contingent upon several factors outside the control of ACS.
One of the companies is primarily an asset company. It is proposed to exchange an energy-based asset/commodity to ACS for equity. This commodity would be sold in the commodities market to generate cash, as needed, for on-going operations, eliminate debt or to expand by acquisition. The exchange would cause ACS to no longer be a ‘designated’ security. This would give brokers the freedom to actively offer ACS stock without the encumbrance of designation.
The second publicly traded company is also in the energy and recycling business. They have multiple subsidiaries and are currently expanding their influence on a worldwide basis. The current consideration is for a business combination in some form to occur between the two companies. This company is a ‘pink sheet’ company. However, based upon its share price, assets, revenues, technology and market opportunity, it is poised to move to another exchange, whether NASDAQ or AMERICAN is to be determined. This process can be expedited by combination with ACS and with our longevity as a reporting public company, institutional funding should follow. Much of the groundwork has been laid and should fall into place as the pieces are assembled. Negotiations are ongoing. Although preliminary understandings exist, they are contingent upon several factors outside the control of ACS.
Although each of the proposals above are exciting and progressing, they are not completed. Whether they are finalized as proposed will be several weeks away. In the mean time, the patented technology possessed by the second company is scheduled for final field testing under laboratory supervision for the purpose of proving the technology for tens of millions of dollars in funding. Once tested and proven, it is anticipated that IMW will receive a multi-year, multi-million dollar contract for the production of these machines. Whether IMW is a subsidiary of the business combination or simply a contractor for the owner company, IMW will be cast in a whole new light. The negotiations provide for full funding and guaranteed margins. Negotiations are ongoing. Although preliminary understandings exist, they are contingent upon several factors outside the control of ACS.
The testing of the technology will take place at the Bartow, Florida home of American Commerce Solutions, Inc. and IMW. Materials have been delivered to the site, the laboratories are prepared to supervise and the machinery is being prepared for delivery at this writing. The testing is projected to be concluded by the end of next week, if Hurricane Wilma does not interfere. Success of the testing is anticipated, since similar tests have been successful in the past.
The structure of any final agreements between the companies referenced is still in flux. However, all negotiations are independent of each other. In other words, it’s not an all or nothing arrangement, unless that is our choice. All negotiations are being conducted with sights set upon a win for ACS shareholders. What can we win?
1) Become part of a hot market segment……the energy segment
2) Broaden the base of assets and revenue
3) Work on an exclusive basis with proprietary technology
4) Move to a more Issuer friendly exchange
5) Production funding
6) Availability of institutional funding/buyers
7) Profitability
Where or when these negotiations will end is still somewhat nebulous. Communications take place multiple times daily. We are making progress and our expectations are high. The potential is great. Time will tell whether our plan will succeed, for someone once wrote, “ The best laid plans of mice and men often go awry…”
The last several months have seen the ACS share price drifting slowly downward. However, this will be short-lived, since it has always responded favorably to even a modicum of upward buying pressure. As more specific information is released we will see shareholders from the other companies take advantage of the ACS bargain that exists today. I believe that some of our recent dropouts may also be waiting to buy back into the new opportunity and are keeping tabs on our activity. I know that new investors are waiting in the wings for the right announcements. I want ACS shareholders to reap the harvest for the patience they have exhibited.
I trust that each shareholder will make someone else aware that it is time to grab hold, just in case these best laid plans’… do not go awry!
Dan Hefner
President
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements, including but not limited to, certain delays and risks detailed from time to time in the company’s filings with the Securities and Exchange Commission
SPZI...the email, did it hit 0.15 to 0.20?? At 0.034 now.
Pure Profit-Picks Alert This Week: SPZI
SPZI is our hot pick this week, you're getting
this email first before the company launches
a huge promotion over the weekend because you're
a Premier Member on our list. So be aware of
this alert and we recommend this company highly
be sure to get in early. Our last pick was up
80 percent in 2 days this one is expected much
higher.
Company: For Spooz, Inc.,
T1cker: SPZI . Pk
Current Price: .03
1 Week_Target: .15 to .20
Purchase_Recommendation: Very High
Spooz Appoints Dr. Roger Brown to Advisory
Board.
CHICAGO- Spooz, Inc. OTC:SPZI today announced
the addition of Dr. Roger Glenn Brown to the
company's Advisory Board
Dr. Brown has over 20 years experience in the
emerging fields of systems analysis, business
intelligence, business analytics, data
warehousing, data mining, and knowledge
management. After ten years with the Central
Intelligence Agency where he served as an
intelligence analyst, Dr. Brown founded
INSCAPE, a technology consulting enterprise
that provided a wide range of services
related to the design, acquisition,
incubation and installation of new
technologies into corporate and
organizational environments.
Dr. Brown is also the architect of patent
pending technology originally developed as
a web-based electronic exchange to facilitate
transactions for unlisted securities between
accredited investors, which could eventually
lead to the development of enterprise software
products that would allow financial institutions
to create internal electronic exchanges that
can match and offset positions internally
without the need to go to the traditional
exchanges saving millions in transaction
costs.
Dr. Brown has taught and conducted research
at Stanford University; Golden Gate University
Graduate School of Business; University of
California, Irvine Graduate School of Management;
Monterrey Institute of International Studies
Graduate School of Management, The Naval Post
Graduate School and the Graduate School of
National Security Affairs.
Spooz CEO, Paul Strickland, commented, "We
consider it a great privilege to have a man with
Roger's experience and knowledge as an Advisor.
His in-depth knowledge of accounting and corporate
finance, extensive research & teaching skills and
broad-based experience in business plans and
private placements will undoubtedly prove to be
invaluable to the company as we progress along
our growth path."
About Spooz, Inc.
Spooz, Inc., a publicly traded company based in
Chicago, provides a suite of solutions designed
to simplify financial trading for traders and
hedgers alike. SpoozToolz(TM) and its modules,
the Company's flagship products, add built-in
trading capabilities to the popular Microsoft(R)
Excel software application, combining a
customizable interface, streaming quotes, charts,
technical analysis, a comprehensive historical
database, and electronic trade execution into a
simple add-in that becomes part of the Excel toolbar.
D1scl a1mer Bel ow:
Infor, mation within this email contains forwardlooking
,st,atements within the meaning of Sec. tion 2.7A of the
Sec.urities Act ,of 19, 33 and Sec,tion 2 1B of the
Secur,ities Exchange Act of 19, 34. Any state, ments
that express or involve discussions with respect to
predi, ctions, goals, expec, tations, beli. efs, plans,
project. ions, objec. tives,. assu. mptions or fut.
ure events or performance are not stat. ements of h.
istorical fact and may be forwardloo king state, ments.
In comp, liance with .Sect ion 1 7. b, we dis. cl. ose
we were paid 25, 000 in ca. sh and hold no st. ock
prior to the publ. ica, tion of this r, eport. Readers
of this pub, lication are cautioned not to place un,
due reliance on forw ardlo oking st, ateme nts , which
are ba, sed on cert ain assu mptions and expec tations
invo lving various ri sks and uncer, tainties, that
could cause results to dif fer materi ally from those
set fo rth in the for war dloo, king sta, tem ents
shrine
unsystematic summer
SPZI...got a couple of email spams on this one....no DD, no opinion....
Spooz Posts Public Disclosure
Thursday September 22, 8:30 am ET
CHICAGO--(BUSINESS WIRE)--Sept. 22, 2005--Spooz, Inc. (OTC:SPZI - News) chief executive, Paul Strickland, issued a progress update detailing the company's positioning, industry growth and public disclosure. He addressed shareholders directly with the following letter:
Dear Shareholders of Spooz, Inc.,
We want to thank our shareholders for their support in the absence
of any public disclosure over the past few months. Management at Spooz
has maintained a strict policy of avoiding public solicitation of its
securities in any fashion, however, we believe increasing investor
interest and participation obligates Spooz to provide our shareholders
with public disclosure. Today, Spooz updated its Disclosure Statement
on www.pinksheets.com. Spooz intends to begin the process of becoming
a fully reporting company in the near future.
The commodities industry is experiencing growth at an accelerated
rate. On September 1, 2005, the Chicago Mercantile Exchange (NYSE:CME
- News), the world's largest and most diversified futures exchange,
reported that it traded more than 10.7 million contracts, breaking the
previous day's record volume of 9.97 million contracts. On that day
trading in a single contract accounted for the exchange of $5.8
trillion in Eurodollar futures. The same day, 6.9 million contracts
were traded electronically on Globex(R), breaking the previous record
of 6.8 million contracts set on August 31. Volume and seat prices seem
to be eclipsing record highs at futures exchanges on a daily basis.
Not only are global volume and seat prices increasing, but the
industry is consolidating and transitioning due to the electronic
trading revolution. Exchanges are merging, consolidating, sharing
execution platforms, and leveling the playing field for traders who
are not resident on the trading floors. There has been no time in
history where the opportunities for business growth have been more
attractive in our industry.
Spooz has strategically positioned itself to take advantage of these
opportunities and as a part of that process has restructured the
company in anticipation of rapid and sustained growth. The posting of
the updated Disclosure Statement is a positive step toward the
milestones we seek, but we must, according to securities regulations,
maintain a solid non-solicitation policy. Any prospective investor
must also realize that the Disclosure Document represents a snapshot
of the company as of June 30, 2005 but does not reflect the company's
current position and therefore may be materially misleading.
Over the next few weeks and months, Spooz will significantly increase
its public disclosure. We will file an updated Disclosure Statement
and post it on www.pinksheets.com as of the end of the third quarter.
The Disclosure Statement will reflect a much clearer picture of the
company.
Again, I want to thank the Spooz team and our shareholders for
sticking with us during the tough development times and the great deal
of commitment they have demonstrated in assisting Spooz to fulfill its
mission of revolutionizing the way people will trade.
Sincerely,
Paul D. Strickland, Jr.
About Spooz, Inc.
Spooz, Inc., a publicly traded company based in Chicago, provides a suite of solutions designed to simplify financial trading for traders and hedgers alike. SpoozToolz(TM) and its modules, the Company's flagship products, add built-in trading capabilities to the popular Microsoft® (NASDAQ:MSFT - News) Excel software application, combining a customizable interface, streaming quotes, charts, technical analysis, a comprehensive historical database, and electronic trade execution into a simple add-in that becomes part of the Excel tool bar.
Forward-Looking Statements: This news release may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements.
--------------------------------------------------------------------------------
Contact:
For Spooz, Inc., Chicago
The Investor Relations Company
Brien Gately, 847-296-4200
bgately@tirc.com
or
Spooz, Inc.
312-379-3166
http://www.info@spooz.com
http://www.spooz.com
Interesting read, one biz's China market experience:
Localizing the Brand
Inc.com
Henry Estate's push into China flopped--until it learned that exporting means more than just translating the words on a label.
There are 1.3 billion potential wine drinkers in China, and Scott Henry, owner of Henry Estate, a winery in Umpqua, Oreg., was convinced they'd love his pinot noir. Henry understood that Western-style wine is a relatively new phenomenon in China, but he also believed that his wine's taste and texture were a perfect match for Chinese cuisine.
Henry Estate is no stranger to exporting. For the past 10 years it has shipped cases to Canada, the U.K., and Japan. How much harder could it be to add China to the list? So last fall, Doyle Hinman, the winery's marketing director, had some marketing materials translated into Mandarin, slapped some Chinese-language labels on the bottles, and found a distributor, Portland, Oreg.-based American Pacific, with contacts in the country. Soon, 700 cases of pinot noir were en route to China. "We were prepared for the wine to explode," says Henry. "We were set to handle a demand of 500 cases a month."
But four months later, most of that wine was still on the shelves in Chinese stores. Hinman and American Pacific's Terry Protto hopped on a plane to investigate and were stunned by what they found. No one in China, not the local distributors, the retailers, or consumers, seemed to know the first thing about red wine. For one thing, the wine, which retails for $62 a bottle, was being sold in the equivalent of convenience stores. Bottles were being delivered on the backs of motorcycles and were often left sitting in the sun for hours. "I thought some things about wine were just known," Hinman says. "Not there."
With scores of U.S. and European wineries jockeying for position in the Chinese market, Hinman thought that just getting his product to market would be the most critical hurdle. But globalizing a product, especially something as culturally intricate as wine, is a lot more complicated than that. "When you introduce a new product overseas, no matter what it is, you have to go through a process we call localizing the brand," says Chanin Balance, CEO and founder of ViaLanguage, a translation firm based in Portland, Oreg. "You have to introduce it in a way that is congruent with the culture."
Having botched their first impression, Henry Estate and American Pacific--which formed a partnership to tap the Chinese market--were determined that their second be more successful. "Our mantra," says Protto, "was 'Assume nothing.'" The first move was to get a better understanding of who their customers were and how to get the wine in their hands. Protto tapped one of his Chinese associates, who began canvassing government officials, young banking and finance executives, owners of chic restaurants and bars, Western expatriates--anyone who seemed likely to be a wine drinker. He discovered that Chinese buyers are as interested in the status that wine confers as they are in the way it tastes. He also learned that the government-controlled Chinese Central Television network had launched a series of ads touting the health benefits of drinking red wine--which could provide a nice marketing bounce.
The Henry Estate team didn't waste a minute. They abandoned the small retail stores and used their Chinese connections to get the wine on menus at upscale hotels and restaurants in Beijing and Shanghai. Protto, who is fluent in Mandarin, gave tutorials to waiters, showing them how to pair pinot noir with food and laying out an incentive plan to encourage servers to recommend Henry Estate. Turning their attention to merchandising, they began packaging individual bottles and pairs of bottles in a rustic wooden box, with "Oregon Pinot Noir" stenciled on the side, along with a pair of wineglasses. Hanging around the bottle's neck was an 18-minute DVD demonstrating how the wine is produced and how it should be consumed. "Chinese customers would often whip out their mini-DVD players and watch the video right there at the table," Protto says.
Henry Estate and American Pacific have spent about $250,000 on such efforts--plus about $5,000 in financial assistance under a Department of Agriculture program designed to stem the trade deficit by spurring exports. The campaign is beginning to pay off. Two high-end Chinese supermarket chains, with more than 2,000 stores each, are sending representatives to visit Henry Estate this winter. The winery is also negotiating with Disneyland Hong Kong, which is considering adding Henry Estate's vintages to several restaurants' wine lists. Meanwhile, the winery's second shipment--of about 600 cases--is scheduled for the end of the year. "It's an untapped market over there," Henry says, "and we've been able to build a solid foundation."
SLB reports...one of the first in the oil service sector to report???
(Update: PR corrected after I posted!!! "Please correct paragraph three to read ... 86 cents per share, meeting the analysts' average forecast ... instead of ... 89 cents per share, topping the analysts' average forecast... .) LOL!!!
Excluding discontinued operations and charges, Schlumberger said earning were 89 cents per share, topping the analysts' average forecast of 86 cents.
Profits at oil services companies have surged in the past 18 months as record high oil and gas prices have prompted energy producers to increase their exploration and production efforts.
Rest of the story: http://biz.yahoo.com/rb/051021/energy_schlumberger_earns.html?.v=2
SNDK and GOOG make big gains....looks good for the markets tomorrow.....click on symbols for AH trading...
http://finance.yahoo.com/q/cq?d=v1&s=SNDK+GOOG
lawrenzo, no, I didn't call, my point is, the info is not readily available to shareholders of AMEP and I doubt a phone call would give me the investees number of employees AND their salaries. If I did get that info in a phone call I wouldn't consider it 100% credible unless it could be verified in a filing which would also include changes from quarter to quarter. Too much hidden info in a BDC, IMO.
FASC is kicking GW's butt!! Dang MM's!! FASC up 22%, GW down 5%!!! GW earnings should be great next month, my guess is GW will close the year out nicely while FASC will be sold off for tax losses.... Hey!! I'll bet GW's per share earnings will be positive!!! Next week FASC will be back down when those (wink,wink) daytraders leave!! LOL!
Maybe the German sawdust boys are buying!!! More likely, MM's have some volume to dump and are running the price up to suck in some buyers as they did many times in the past....as usual some rumors around to help out the effort. Probably back down next week, not much talk on the board, more likely emails and private messages to pass on the excitement!!! GLTA!!! Go FASC!!! Hang in there for your buy, Waitedg!!!
Well, I looked for two days and I can't find any info on how many employees PRI and Bend Arch have and how much they are paid. I know nobody here cares, but that's typical of a Business Development Company.....all the good info is hidden from shareholders, IMO. Nice big red flag, play the pump and dump only, IMO. I may look for some shares at 5 cents if one of my other "plays" works out, looks like none of the phone BS like pictures is coming true on time. I figure 1-2 months before any drilling.
More great news....
StemCells, Inc. Receives FDA Clearance to Initiate Phase I Clinical Trial of Neural Stem Cells to Treat Batten Disease
Thursday October 20, 7:30 am ET
First-Ever FDA-Approved Trial to Transplant Human Neural Stem Cells
PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 20, 2005--StemCells, Inc. (NASDAQ: STEM - News) today announced that it has received clearance from the U.S. Food and Drug Administration (FDA) to begin a Phase I safety and preliminary efficacy trial of the Company's proprietary human neural stem cell product HuCNS-SC(TM) to treat Batten disease. Batten disease is a rare, fatal genetic disorder that affects the central nervous system of children. This is the first-ever FDA-approved clinical trial to use a purified composition of human neural stem cells as a potential therapeutic agent in humans.
"It is truly gratifying that the FDA is permitting this clinical trial to go forward," said Martin McGlynn, President and Chief Executive Officer of StemCells, Inc. "This development is a noteworthy milestone not only for our Company, but also for the entire field of stem cell therapeutics. Most importantly, it offers hope to the children and families afflicted by this disease for which there is now no cure, and to the clinicians who are seeking a treatment for their patients."
"Physicians have been essentially helpless to assist children suffering from Batten disease. This trial opens the possibility that in the future, we may be able to provide relief to our patients and their families from one of the cruelest and most devastating diseases," said Dr. Gregory Enns, Assistant Professor of Pediatrics and Director of the Biochemical Genetics Program, Stanford University School of Medicine.
Dr. Stephen Huhn, Chief of Pediatric Neurosurgery at Packard Children's Hospital at Stanford University, added, "Years of laboratory research are now moving into the clinic, and it is my fervent hope that the proposed neurosurgical intervention will provide some relief for the children with this terrible disease and for the families who care for them. I look forward to participating in the first trial of neural stem cell transplantation for a rare and fatal brain disorder in children that has no effective known treatment."
About the Clinical Trial
The proposed Phase I trial is designed to evaluate the safety and preliminary efficacy of HuCNS-SC(TM) for the treatment of infantile and late-infantile neuronal ceroid lipofuscinosis (NCL), the most severe forms of a group of disorders commonly referred to as Batten disease. In addition to measuring the safety of HuCNS-SC, the trial will provide initial data on HuCNS-SC's ability to affect the progression of the disease. Potential patients will be tested for eligibility and then evaluated for baseline disease status prior to transplantation of HuCNS-SC. Children enrolled in the study will be evaluated with standardized measures of development, cognition, behavior and language for one year following HuCNS-SC transplantation. The Company is committed to following the effects of this therapy long-term, so trial patients will also be asked to commit to a four-year follow-up study. The Company plans to seek Institutional Review Board (IRB) approval from a number of leading medical institutions, including the Stanford University School of Medicine.
About Batten Disease
Batten disease is named after the British pediatrician who first described the juvenile form of NCL in 1903. It is also known as Spielmeyer-Vogt-Sjogren-Batten disease. The name is now commonly used to encompass all three forms of NCL--infantile, late infantile and juvenile onset. All forms have the same basic cause--lack of a lysosomal enzyme--and have a similar progression and outcome. The different forms of NCL have traditionally been classified by age of onset. Now with genetic testing, the disease is more precisely classifiable in terms of mutations in the specific enzyme causing the disease. Children with Batten disease suffer seizures, progressive loss of motor skills, sight and mental capacity, eventually becoming blind, bedridden and unable to communicate. Today, Batten disease is always fatal.
In two subtypes of NCL, infantile and late infantile, the disorder is brought on by inherited mutations in the CLN1 gene, which codes for palmitoyl-protein thioesterase 1 (PPT1) or in the CLN2 gene, which codes for tripeptidyl peptidase I (TPP-I). The consequence of these mutations is either a defective or a missing enzyme that leads to accumulation of lipofuscin-like fluorescent inclusions in various cell types. Presumably, these non-degraded lysosomal substrates accumulate to the point where they interfere with normal cellular and tissue function and ultimately lead to the pathological manifestations of the disease. One way to treat the disease is to provide the brain with a replacement source of functional enzyme that can be taken up by the enzyme-deficient cells.
About HuCNS-SC(TM)
StemCells' human central nervous system stem cells (HuCNS-SC) are a somatic cell therapy product consisting of neural cells prepared under controlled conditions. Neural stem cells, a rare subset of brain cells, are isolated from the human fetal brain, purified, propagated, and tested; they are then frozen in cell banks from which HuCNS-SC doses can be prepared.
A property of HuCNS-SC is that they spread throughout the brain and produce both of the lysosomal enzymes missing in the subtypes of Batten disease being studied in the clinical trial. When HuCNS-SC is transplanted into the brain of a preclinical mouse model developed to mimic the human form of Infantile NCL, the enzyme level increases and continues to do so over time after the transplant. Thus, placement of HuCNS-SC in appropriate places in the brain provides the prospect of long-term delivery of the missing enzyme. The production of both enzymes by HuCNS-SC provides a scientific justification for enzyme replacement and cellular rescue in these two subtypes of Batten disease.
About StemCells, Inc.
StemCells, Inc. is a development stage biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the nervous system, liver and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury. StemCells is the first company to directly identify and isolate human neural stem cells from normal brain tissue. These stem cells are expandable into cell banks for therapeutic use, which demonstrates the feasibility of using normal, non-genetically modified cells as cell-based therapies. StemCells is the only publicly traded company solely focused on stem cell research and development and has more than 40 U.S. and 100 non-U.S. patents, as well as more than 100 patent applications pending worldwide. Further information about the Company is available on its web site at: www.stemcellsinc.com.
Apart from statements of historical facts, the text of this press release constitutes forward-looking statements regarding, among other things, the future business operations of StemCells, Inc. (the "Company") and its ability to conduct clinical trials as well as its research and product development efforts. The forward-looking statements speak only as of the date of this news release. StemCells does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management's current views and are based on certain assumptions that may or may not ultimately prove valid. The Company's actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainty regarding whether a suitable site for the clinical trial will be identified, whether the required Institutional Review Board approval will be obtained for any site, and whether results obtained in the animal model of Infantile NCL will be able to be translated into treatment for human conditions; uncertainty as to whether the FDA will permit the Company to continue clinical testing in the Batten disease trial or in future clinical trials of proposed therapies for other diseases or conditions despite the novel and unproven nature of the Company's technology; uncertainties regarding the Company's ability to obtain the capital resources needed to continue its current research and development operations and to conduct the research, preclinical development and clinical trials necessary for regulatory approvals; uncertainty regarding the validity and enforceability of the Company's patents; uncertainty as to whether HuCNS-SC(TM) and any products that may be generated in the future in the Company's stem cell programs will prove safe and clinically effective and not cause tumors or other side effects; uncertainty as to whether the Company will achieve revenues from product sales or become profitable; and other factors that are described in Exhibit 99 to the Company's Annual Report on Form 10-K titled "Cautionary Factors Relevant to Forward-Looking Statements."
--------------------------------------------------------------------------------
Contact:
StemCells, Inc.
Company Contact:
Rodney Young, 650-475-3100 ext 105
Chief Financial Officer
irpr@stemcellsinc.com
or
Media Contact:
Schwartz Communications, Inc.
781-684-0770 or 415-512-0770
stemcells@schwartz-pr.com
STEM gonna pop??? Looking like a long term position should be considered....
StemCells, Inc. Receives FDA Clearance to Initiate Phase I Clinical Trial of Neural Stem Cells to Treat Batten Disease
Thursday October 20, 7:30 am ET
First-Ever FDA-Approved Trial to Transplant Human Neural Stem Cells
PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 20, 2005--StemCells, Inc. (NASDAQ: STEM - News) today announced that it has received clearance from the U.S. Food and Drug Administration (FDA) to begin a Phase I safety and preliminary efficacy trial of the Company's proprietary human neural stem cell product HuCNS-SC(TM) to treat Batten disease. Batten disease is a rare, fatal genetic disorder that affects the central nervous system of children. This is the first-ever FDA-approved clinical trial to use a purified composition of human neural stem cells as a potential therapeutic agent in humans.
"It is truly gratifying that the FDA is permitting this clinical trial to go forward," said Martin McGlynn, President and Chief Executive Officer of StemCells, Inc. "This development is a noteworthy milestone not only for our Company, but also for the entire field of stem cell therapeutics. Most importantly, it offers hope to the children and families afflicted by this disease for which there is now no cure, and to the clinicians who are seeking a treatment for their patients."
"Physicians have been essentially helpless to assist children suffering from Batten disease. This trial opens the possibility that in the future, we may be able to provide relief to our patients and their families from one of the cruelest and most devastating diseases," said Dr. Gregory Enns, Assistant Professor of Pediatrics and Director of the Biochemical Genetics Program, Stanford University School of Medicine.
Dr. Stephen Huhn, Chief of Pediatric Neurosurgery at Packard Children's Hospital at Stanford University, added, "Years of laboratory research are now moving into the clinic, and it is my fervent hope that the proposed neurosurgical intervention will provide some relief for the children with this terrible disease and for the families who care for them. I look forward to participating in the first trial of neural stem cell transplantation for a rare and fatal brain disorder in children that has no effective known treatment."
About the Clinical Trial
The proposed Phase I trial is designed to evaluate the safety and preliminary efficacy of HuCNS-SC(TM) for the treatment of infantile and late-infantile neuronal ceroid lipofuscinosis (NCL), the most severe forms of a group of disorders commonly referred to as Batten disease. In addition to measuring the safety of HuCNS-SC, the trial will provide initial data on HuCNS-SC's ability to affect the progression of the disease. Potential patients will be tested for eligibility and then evaluated for baseline disease status prior to transplantation of HuCNS-SC. Children enrolled in the study will be evaluated with standardized measures of development, cognition, behavior and language for one year following HuCNS-SC transplantation. The Company is committed to following the effects of this therapy long-term, so trial patients will also be asked to commit to a four-year follow-up study. The Company plans to seek Institutional Review Board (IRB) approval from a number of leading medical institutions, including the Stanford University School of Medicine.
About Batten Disease
Batten disease is named after the British pediatrician who first described the juvenile form of NCL in 1903. It is also known as Spielmeyer-Vogt-Sjogren-Batten disease. The name is now commonly used to encompass all three forms of NCL--infantile, late infantile and juvenile onset. All forms have the same basic cause--lack of a lysosomal enzyme--and have a similar progression and outcome. The different forms of NCL have traditionally been classified by age of onset. Now with genetic testing, the disease is more precisely classifiable in terms of mutations in the specific enzyme causing the disease. Children with Batten disease suffer seizures, progressive loss of motor skills, sight and mental capacity, eventually becoming blind, bedridden and unable to communicate. Today, Batten disease is always fatal.
In two subtypes of NCL, infantile and late infantile, the disorder is brought on by inherited mutations in the CLN1 gene, which codes for palmitoyl-protein thioesterase 1 (PPT1) or in the CLN2 gene, which codes for tripeptidyl peptidase I (TPP-I). The consequence of these mutations is either a defective or a missing enzyme that leads to accumulation of lipofuscin-like fluorescent inclusions in various cell types. Presumably, these non-degraded lysosomal substrates accumulate to the point where they interfere with normal cellular and tissue function and ultimately lead to the pathological manifestations of the disease. One way to treat the disease is to provide the brain with a replacement source of functional enzyme that can be taken up by the enzyme-deficient cells.
About HuCNS-SC(TM)
StemCells' human central nervous system stem cells (HuCNS-SC) are a somatic cell therapy product consisting of neural cells prepared under controlled conditions. Neural stem cells, a rare subset of brain cells, are isolated from the human fetal brain, purified, propagated, and tested; they are then frozen in cell banks from which HuCNS-SC doses can be prepared.
A property of HuCNS-SC is that they spread throughout the brain and produce both of the lysosomal enzymes missing in the subtypes of Batten disease being studied in the clinical trial. When HuCNS-SC is transplanted into the brain of a preclinical mouse model developed to mimic the human form of Infantile NCL, the enzyme level increases and continues to do so over time after the transplant. Thus, placement of HuCNS-SC in appropriate places in the brain provides the prospect of long-term delivery of the missing enzyme. The production of both enzymes by HuCNS-SC provides a scientific justification for enzyme replacement and cellular rescue in these two subtypes of Batten disease.
About StemCells, Inc.
StemCells, Inc. is a development stage biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the nervous system, liver and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury. StemCells is the first company to directly identify and isolate human neural stem cells from normal brain tissue. These stem cells are expandable into cell banks for therapeutic use, which demonstrates the feasibility of using normal, non-genetically modified cells as cell-based therapies. StemCells is the only publicly traded company solely focused on stem cell research and development and has more than 40 U.S. and 100 non-U.S. patents, as well as more than 100 patent applications pending worldwide. Further information about the Company is available on its web site at: www.stemcellsinc.com.
Apart from statements of historical facts, the text of this press release constitutes forward-looking statements regarding, among other things, the future business operations of StemCells, Inc. (the "Company") and its ability to conduct clinical trials as well as its research and product development efforts. The forward-looking statements speak only as of the date of this news release. StemCells does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management's current views and are based on certain assumptions that may or may not ultimately prove valid. The Company's actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainty regarding whether a suitable site for the clinical trial will be identified, whether the required Institutional Review Board approval will be obtained for any site, and whether results obtained in the animal model of Infantile NCL will be able to be translated into treatment for human conditions; uncertainty as to whether the FDA will permit the Company to continue clinical testing in the Batten disease trial or in future clinical trials of proposed therapies for other diseases or conditions despite the novel and unproven nature of the Company's technology; uncertainties regarding the Company's ability to obtain the capital resources needed to continue its current research and development operations and to conduct the research, preclinical development and clinical trials necessary for regulatory approvals; uncertainty regarding the validity and enforceability of the Company's patents; uncertainty as to whether HuCNS-SC(TM) and any products that may be generated in the future in the Company's stem cell programs will prove safe and clinically effective and not cause tumors or other side effects; uncertainty as to whether the Company will achieve revenues from product sales or become profitable; and other factors that are described in Exhibit 99 to the Company's Annual Report on Form 10-K titled "Cautionary Factors Relevant to Forward-Looking Statements."
--------------------------------------------------------------------------------
Contact:
StemCells, Inc.
Company Contact:
Rodney Young, 650-475-3100 ext 105
Chief Financial Officer
irpr@stemcellsinc.com
or
Media Contact:
Schwartz Communications, Inc.
781-684-0770 or 415-512-0770
stemcells@schwartz-pr.com
I don't own any TREX, have some GW, NGAS, and TDYH. May buy some AMEP if the pps drops on no drilling news soon.
AACS.OB President's Letter due out tomorrow. PPS holding at 0.018 waiting on news, big secret contract....we'll see...I hold a small position hoping for maybe a double on news....
Historically has been a share diluter, not a "hold" stock, IMO.
Thursday October 13, 7:00 am ET
American Commerce Solutions, Inc. to Post President's Letter
BARTOW, Fla., Oct. 13 /PRNewswire-FirstCall/ -- American Commerce Solutions, Inc. (OTC Bulletin Board: AACS - News) announced that it will post a letter from its President to its website @ WWW.AACSSYMBOL.COM on October 20, 2005.
Daniel L. Hefner, President and Chief Executive Officer of American Commerce Solutions, Inc. stated, "Next week I will post a letter to update our stockholders on recent activities and plans that have been tightly guarded over the past 90 days. It is my hope that each stockholder will be renewed in their support for AACS. I am aware and disappointed in the drifting share price during the company's period of silence. It is anticipated that we will have progressed sufficiently to be able to enlighten our share holders as to the activities that have absorbed our time. I trust that removal of the uncertainty will have a positive impact on shareholder confidence."
Hefner noted that the Form 10QSB will be filed within the next couple of days. (DONE)
The company's Chariot Manufacturing subsidiary website is http://www.chariot-trailer.com . An updated President's letter for this subsidiary will post before the end of the month to provide current information about the company and its progress and objectives.
AACS also maintains a Strategic Partnership with American Fiber Green Products, Inc. with details available through its website, http://www.americanfibergreenproducts.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause results to differ materially from those expressed in the forward- looking statements, including but not limited to, certain delays and risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
techisbest....the MM's are always in the middle, they fill the buys and sells. Their commission is the spread between bid and ask. They buy low and sell high all day long. Wyo got lucky, IMO, some MM bought high (or maybe he was short on filling a sale a higher price a few days ago and needed to square the books). I've had the same thing happen a couple of times on other stocks, and more often a limit buy or sell fill between the bid/ask when a big spread is present on a low volume stock. An MM is always the buyer and seller on every trade.....the specialist is on the NYSE.
Terry, jump in here and tell me where I'm wrong, TIA....
GG...Shining stars
Even though the industry in general faces gloomy prospects, we think there are a few stocks that should be on investors' radar screens. These stocks have historically earned well in excess of their cost of capital and have respectable reserves.
Goldcorp (NYSE:GG - News).
Goldcorp has enjoyed enviably low extraction costs because its Red Lake Mine in Ontario has 2 ounces of gold per ton of ore as opposed to the 0.01-1.3 ounces found in the mines owned by larger North American companies like Newmont (NYSE:NEM - News), Placer Dome (NYSE:PDG - News), and Barrick (NYSE:ABX - News). Low extraction costs translate into healthy cash flows, higher margins, and higher returns on invested capital. Goldcorp's average ROIC is an impressive 30% since 2001, which is outstanding in the gold mining industry. Under new CEO Ian Telfer, Goldcorp has set its sights on using the cash generated by operations to acquire its way into the 2 million-ounce-per-year category. We expect to see a lot of action and growth here, though we would keep a close watch on acquisition prices.
Rest of article: http://biz.yahoo.com/ms/051019/146454.html?.v=1
JMO, but I think if any of the "irons in the fire" were getting "hot", there would be some decent buying going on. Lots of people close to the "fire" to see what was coming and they don't appear to outweigh the sellers at this point.
Greenspan: Energy Prices to Drag Economy
"The current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," Greenspan said
"If history is any guide, oil will eventually be overtaken by less-costly alternatives well before conventional oil reserves run out," he said. But he cautioned that the transition will still take time.
Tuesday October 18, 4:10 am ET
By Martin Crutsinger, AP Economics Writer
Greenspan Says Run-Up in Energy Prices Was `accident Waiting to Happen'
WASHINGTON (AP) -- The sharp run-up in energy prices following the shutdown of Gulf Coast production facilities was an "an accident waiting to happen," Federal Reserve Chairman Alan Greenspan said, while adding that it should not have the severe economic impact of the 1970s oil shocks.
"The current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," Greenspan said Tuesday in a speech to Japanese business executives in Tokyo. A copy of his remarks was released late Monday in Washington.
Greenspan said that was because the world was a lot more energy-efficient now than when the Arab oil embargo triggered the first surge in oil prices in 1973.
"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," he said, although he did not quantify how much of a slowdown will occur.
Private economists have said the fallout from Hurricane Katrina, which hit Aug. 29, and Hurricane Rita, which struck Sept. 24, could shave as much as a full percentage point off growth in the second half of this year as consumers, forced to pay higher energy bills, cut back on spending in other areas.
A rising demand for oil, spurred by increased use in Asian countries such as China, has eliminated the slack in world oil markets that Greenspan said had kept oil prices relatively contained from 1985 through 2000. The oil market this year, he said, "had been subject to a degree of strain not experienced in a generation."
Since the first oil shock of 1973, the amount of oil consumed per unit of economic output has fallen by one-third worldwide and has been cut in half in the United States, developments that make the U.S. and global economies less susceptible to oil price shocks, Greenspan said. And he predicted that if high energy prices persist, countries will become even more energy-efficient.
He noted that gasoline demand had declined "markedly" in the United States in recent weeks, "presumably partly as consequence of higher prices."
Price signals sent by free markets will spur research and development into new approaches to the production and use of energy "that we can now only barely envision," Greenspan said.
"If history is any guide, oil will eventually be overtaken by less-costly alternatives well before conventional oil reserves run out," he said. But he cautioned that the transition will still take time.
"We and the rest of the world doubtless will have to live with the geopolitical and other uncertainties of the oil markets for some time to come," he said.
In his speech, Greenspan made no reference to how the recent run-up in energy prices will affect Federal Reserve interest rate policies.
The government reported Friday that consumer prices shot up in September by the biggest amount in a quarter-century, led by a record increase in gasoline prices.
Many analysts believe the Fed, which raised a key interest rate for an 11th time in September, will keep raising rates at its last two meetings of this year in November and December in an effort to keep the jump in energy prices from pushing overall inflation higher.
Federal Reserve: http://www.federalreserve.gov
Greenspan: Energy Prices to Drag Economy
"The current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," Greenspan said
"If history is any guide, oil will eventually be overtaken by less-costly alternatives well before conventional oil reserves run out," he said. But he cautioned that the transition will still take time.
Tuesday October 18, 4:10 am ET
By Martin Crutsinger, AP Economics Writer
Greenspan Says Run-Up in Energy Prices Was `accident Waiting to Happen'
WASHINGTON (AP) -- The sharp run-up in energy prices following the shutdown of Gulf Coast production facilities was an "an accident waiting to happen," Federal Reserve Chairman Alan Greenspan said, while adding that it should not have the severe economic impact of the 1970s oil shocks.
"The current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," Greenspan said Tuesday in a speech to Japanese business executives in Tokyo. A copy of his remarks was released late Monday in Washington.
Greenspan said that was because the world was a lot more energy-efficient now than when the Arab oil embargo triggered the first surge in oil prices in 1973.
"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," he said, although he did not quantify how much of a slowdown will occur.
Private economists have said the fallout from Hurricane Katrina, which hit Aug. 29, and Hurricane Rita, which struck Sept. 24, could shave as much as a full percentage point off growth in the second half of this year as consumers, forced to pay higher energy bills, cut back on spending in other areas.
A rising demand for oil, spurred by increased use in Asian countries such as China, has eliminated the slack in world oil markets that Greenspan said had kept oil prices relatively contained from 1985 through 2000. The oil market this year, he said, "had been subject to a degree of strain not experienced in a generation."
Since the first oil shock of 1973, the amount of oil consumed per unit of economic output has fallen by one-third worldwide and has been cut in half in the United States, developments that make the U.S. and global economies less susceptible to oil price shocks, Greenspan said. And he predicted that if high energy prices persist, countries will become even more energy-efficient.
He noted that gasoline demand had declined "markedly" in the United States in recent weeks, "presumably partly as consequence of higher prices."
Price signals sent by free markets will spur research and development into new approaches to the production and use of energy "that we can now only barely envision," Greenspan said.
"If history is any guide, oil will eventually be overtaken by less-costly alternatives well before conventional oil reserves run out," he said. But he cautioned that the transition will still take time.
"We and the rest of the world doubtless will have to live with the geopolitical and other uncertainties of the oil markets for some time to come," he said.
In his speech, Greenspan made no reference to how the recent run-up in energy prices will affect Federal Reserve interest rate policies.
The government reported Friday that consumer prices shot up in September by the biggest amount in a quarter-century, led by a record increase in gasoline prices.
Many analysts believe the Fed, which raised a key interest rate for an 11th time in September, will keep raising rates at its last two meetings of this year in November and December in an effort to keep the jump in energy prices from pushing overall inflation higher.
Federal Reserve: http://www.federalreserve.gov
ctb, I have followed AMEP for about two years and read a bunch of positive BS and so called off-the-record reports of conversations with the CEO that were also BS. During that time the company diluted by millions of shares and the pps continued to drop. Now at the time when it appears they may make some money, they change to a BDC which, IMO, looks very suspicious on how the $$$$'s will be reported. That said, if I sell one of my other speculative stocks, I may pick up some AMEP if it should drop while waiting on the rig to do something (I'm guessing more delays). If I get some soon, I'll sell on any rig news and for sure sell before the next filing in November which I guess will show at least a 100 million additional dilution. In the meantime I posted some info and my opinions to see if any could change my mind on a long term investment here. All I got were "basher" comments which tells me I am probably right.
Can I post it at 98 cents????
Maybe it's brake fluid????
Waitedg, I had some good success with options during the "Bubble", but little success with ones I hold now. What I do now is buy both puts and calls and go heavier on the side I think it's gonna go. Now I watch the stocks and they don't move either way!!! LOL!!!
ctb, here's some serious questions, IMO. Can you answer them or have an opinion???
Posted by: Jagman
In reply to: ole vern who wrote msg# 2481 Date:10/16/2005 8:12:46 AM
Post #of 2549
ole vern, sorry Vern, BDC's are set up because the private "investees" do not have to report to the SEC and AMEP only reports the figures submitted by the investees. We know how many employees AMEP has and how "they" are paid, can you tell me how many employees PRI and Bend Arch have and how much they are paid??? Please provide link to that info...
The rig is owned by an investee, do you think you will ever see the finances that apply to the rig??? Do you think you will ever see the $$$ and percent figures of private investors investing in a well being drilled? Or what is the AMEP shareholder percentage ownership of a well? Surely you can see how AMEP shareholders can be kept in the dark like mushrooms????
Waitedg, GM up over $30 premarket on healthcare agreement with union....Oct $30 calls closed at 25 cents on Friday!!!!
Who woulda guessed!!!
Playing the ups and downs of oil....take a look at airline stocks which swing with the price of oil (fuel costs). I like JBLU because it's well run and OK to hold if your timing sucks like mine, LOL!!!! Watch for JBLU to drop if we see a strong spike in oil with the new storm.
Oil up on another storm, Wilma, headed for the Gulf. Still a tropical storm, projected path has it in the Gulf, but swinging into Florida. This time, should I trade oil and gas stocks on any spike??? Still a believer in long term trends in that sector and winter coming.....
http://biz.yahoo.com/ap/051017/oil_prices.html?.v=9
There is the same model rig in Europe for sale listed at $2 million, of course no way to compare condition to the AMEP rig which had little usage in Mexico assuming that's it's total history. If Bitters got a "deal", it may have been for $1 million or just under or over. From the work being done on engines, etc., I would guess it was used for much more than a few water wells.
Doubloon, thanks....that is one of the better reports that I have read, very professional and all the info to date, IMO. Holding tight, looks like the ducks are in a row, patience required.
There's No Need To Fear!
TRCPA is HERE!
Go FASC!!!
greeneyedhawk, how was the rig paid for??? Wasn't clear in the PR. Did the investee have some cash laying around that wasn't reported in the last filing???? Or did AMEP give them some shares to sell since AMEP can't sell shares direct to the market???
greeneyedhawk, I bet TERX spells out their percentage ownership of wells and doesn't have "investees". So they subcontract drilling, BFD, most oil & gas companies do. There are huge advantages in hiring a drilling company, expertise and the ability to keep the rig running with minimum downtime. That's why they exist.
mnfats, I think the pps will go up when there is a PR about drilling starting. I agree this is a great momo play, I just don't think it's a long term hold, too many red flags. That bogus PR about a buy out should give you an idea about the players involved here. Has the SEC announced an investigation of the bogus PR yet??? If it had been about a Nas or NYSE stock, it would have made the national news. The SEC can't regulate the big boys properly let alone the OTC....it's the Wild, Wild West!!
chambers52, good article!!! I wonder if the markets could survive a full disclosure...maybe that's why all in power are afraid to address it, where is Elliot Ness when you need him!!