Thank you for the informative article. I appreciate the detail. Did you hear anything in Oslo that gave you greater or lesser confidence that the Transocean/Valaris transaction will be successfully completed? To me, that uncertainty is disrupting the thesis on Transocean. What do you think? Thank you
Transocean is already presenting RIG + Valaris as one company, including the combined fleet, backlog and synergies. Valaris has also said the transaction remains on track for Q4.
Thank you for this valuable update no one elsee seems to be reporting. As a new subscriber (of course) I have been equally compelled by your enthusiasm for met coal which I also share. I am in Alpha. Warrior, and Ramaco, and needless to say the view from Hormuz is bloody. I am entirely convinced you are right in your prognosis, but the volatility is mind-blowing (eg Alpha down 12 points on the day with oil dropping). To realize your plan 1 to 2 years down the road you need guts of steel.
Met coal is a crazy place to be right now and you genuinely need a stomach for it. But the tape is trading oil, not coking coal fundamentals. My view is that the real prices are still a few years out, when mines disappear and nobody replaces them. Supply tightens slowly, then all at once.
Guts of steel is the right phrase. Although Alpha is the easiest one for me to hold, because the lower the price goes, the better it gets. That is the whole point of owning a cannibal.
Thank you for the informative article. I appreciate the detail. Did you hear anything in Oslo that gave you greater or lesser confidence that the Transocean/Valaris transaction will be successfully completed? To me, that uncertainty is disrupting the thesis on Transocean. What do you think? Thank you
Transocean is already presenting RIG + Valaris as one company, including the combined fleet, backlog and synergies. Valaris has also said the transaction remains on track for Q4.
Thank you for the answer. That helps me a lot.
Thank you for this valuable update no one elsee seems to be reporting. As a new subscriber (of course) I have been equally compelled by your enthusiasm for met coal which I also share. I am in Alpha. Warrior, and Ramaco, and needless to say the view from Hormuz is bloody. I am entirely convinced you are right in your prognosis, but the volatility is mind-blowing (eg Alpha down 12 points on the day with oil dropping). To realize your plan 1 to 2 years down the road you need guts of steel.
Thank you, Ted, and welcome aboard.
Met coal is a crazy place to be right now and you genuinely need a stomach for it. But the tape is trading oil, not coking coal fundamentals. My view is that the real prices are still a few years out, when mines disappear and nobody replaces them. Supply tightens slowly, then all at once.
Guts of steel is the right phrase. Although Alpha is the easiest one for me to hold, because the lower the price goes, the better it gets. That is the whole point of owning a cannibal.