Bulls are coming in because the arbitrage (taking advantage of a price difference between two or more markets) seems very clear as long as oil stays high over the next decade and natural gas prices in the US are low due to a glut here domestically. It makes a great case for arbitrage to export liquified natural gas at a base cost of around $4.50 MMBtu in the US and sell it for 2x - 3x that price in Asia and Europe.
We identified another exciting opportunity a few years ago with Interoil (NYSE - IOC) at $10.00. Then, like Blackstone with Cheniere, George Soros and others saw the vision and possibilities and jumped in big. IOC:NYSE is currently a seven bagger now. See Link
Here's what we need in this country....Jobs, an important Obama agenda item. The DOE approval coming at almost any day will grant us thousands of jobs and Cheniere should obtain relatively easy financing from JP Morgan and Morgan Stanley against their several "pending" definitive trading commitment contracts strategically aligned with the following entities through MOU's:
Spain's Endesa
Italy's Enel Spa
ENN Energy of China
Gas Natural Fenosa of Spain
Sumitomo of Japan
EDF Trading of France
Encana
Bechtel will do the engineering and construction. They are already on board.
Interest is lining up around the world to get in on this project as Cheniere's Co-Founder, Chairman, Chief Executive Officer and President Mr. Charif Souki negotiates the best play on our behalf with the help of supporters including: Gov. Bobby Jindal, Chesapeake Energy, Blackstone Group, the banks and the world's largest foreign trade partners.
This project caught our eye and frankly it will be Life Changing for anyone who can see CEO Charif Souki's vision, much like the vision of this business maharaja Mukesh Ambani.
As a student of John Paulson and David Tepper, all you need to do is step back and get a 40 ft view above the trees and ask yourself some simple questions like the one's we've faced over the past 3 years. Is housing going to sustain the run or crash? Will gold going higher in times of crisis? Will the stock market run if the FED is giving banks free money to invest to accelerate these markets? This arbitrage seems just as clear.
The time to get in this investment is now. We are about to embark on some historic "World Changing" events here in the US. Here is an earlier chart.
Our estimated target is between $15 - $20 per share once the DOE approval gets announced and the project takes hold. A 3 - 5 year target would be $30 - $40+ once the project starts reaching revenue projections.
Supporting documents:
1) Gov. Bobby Jindal letter of support.
2) ExxonMobil news about Natural Gas
3) Who are the players trading LNG around the world?
a) EDF Trading MOU
b) Encana MOU
c) ENN MOU
d) Gas Natural Fernosa MOU
e) Sumitomo MOU
4) Who will supply the domestic Natural Gas?
Chesapeake Energy (NYSE – CHK)
a) CHK Letter of support
5) Who will transport the newly developed LNG? Glad you asked. John Fredreksen’s companies: Golar (GLNG)
6) Next – who is John Fredriksen? Forbes richest shipping magnate...
7) Who are the finance partners? Morgan Stanley and JP Morgan
