Market Sentiment Watch: Strike 2 For The Administration. The appeals court wasted little time in rejecting the White House's request to continue it's moratorium. For it's part, the White House had already vowed to issue another, slightly altered, moratorium in an effort to circumvent the U.S. justice system. So really little has changed except that at some point judges are going to have to get tough with Interior. I wonder if they can hold Salazar in contempt to force him to issue permits.
In Today's Post:
- Holdings Watch
- Commodity Watch
- Natural Gas Storage Review
- Oil Inventory Review
- Stuff We Care About Today – SSN
- Odds & Ends
Holdings Watch ZCAT (Zman Catalyst portfolio)
- 79% Cash
- Positions for the quick view are updated on the ZCAT, ZIM, ZLT page.
- Yesterday’s Trades: None
ZIM (Zman Inefficient Markets portfolio)
- 2% Cash
- Positions updated on the ZCAT, ZIM, ZLT page.
- Yesterday’s Trades: None
Commodity Watch Crude oil rallied $1.37 to close at $75.44 yesterday. The EIA's report was largely bullish (see below). This morning crude is trading off slightly.
Natural gas fell 3.6% ($0.17) to close at $4.40 yesterday after the EIA reported a number that was reasonable in my way of thinking but too big for the Street (see below). This morning gas is trading down 3 cents.
- Tropics Watch: All quiet at the moment.
Natural Gas Storage Review
ZComments: Not much to say, the Street blew the call on this number, sending gas prices lower. I couldn't get down to where the Street was at in my model and neither could EIA. Oh well. Little change from prior weeks as the delta to year ago and 5 year average levels remain close to where they have been. This week's heat will help next week's numbers but be cognizant of the holiday impact before looking for a really small number.
Oil Inventory Review
Stuff We Care About Today
SSN Announces 75% Allotment:
- Shareholders receive 75% of their subscriptions. Expect to see shares and refund checks for the 25% in accounts next week.
- After the deal, SSN should have 82.7 mm ADS outstanding following the deal giving them a market cap of $71 mm.
- Proceeds of the deal are $6.2 mm to their cash reserves for this deal.
- Use of proceeds will be to tide them over on their programs and cash needs until the asset sale in the Niobrara closes in late July.
- I would not be surprised to see some very volatile swings in the shares, now that people know what they have in their possession. The acreage sale after all is not yet a done deal and between now and then, I'm sure many holders will take the easily flip, myself possibly included.
- My valuation thoughts in a table:
Odds & Ends
Share and Enjoy