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rykelsap

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  1. I believe the discount exists on WTI despite the comparability of the prompt month contracts because WTI is not a waterborne price. If I purchase oil at Cushing I still need to pay the pipeline tariff on Enterprise/Enbridge's Seaway line or TransCanada's Marketlink line to get it the coast for export. For light oil, this tariff is ~$2.45/bbl for uncommitted volume. Assuming the physical price at the Gulf Coast and the physical price of Brent are at or near parity, then WTI should trade at slight discount to Brent. If storage builds reverse in the US in the future, you may see WTI trade at a premium to Brent assuming the demand pull from the US pushes the expected import price far enough above Brent to offset the tariff.
  2. Two smaller Canadian companies: LGT.A/LGT.B - Logistec Corporation (Controlled by the daughters of the founder) LAS.A - Lassonde Industries (Controlled by the founder)
  3. I try to read everything that Michael Pettis writes. http://blog.mpettis.com/
  4. That they were able to acquire a large competitor for minimal cost, well below book value and at a low multiple of three year historical EBITDA. The acquisition of Hodges is a counter-cyclical acquisition at distressed asset prices with a payback period of less than a six months. Seems like solid capital allocation to me. "The Company incurred US$42.0 million (US$27.0 million from the Note and US$15.0 million from Company's senior secured facility) in debt to complete the Acquisition. Through the US$22.0 million Asset Sale, the Company has recovered over 52% of its initial investment. The Acquisition included US$17.5 million in working capital which the Company expects to convert into cash within 90 to 120 days. Accordingly, the Company expects to receive approximately US$38.8 million in cash (or over 92%) of its initial US$42.0 million investment in the next 90 to 120 days." "Expects to recover over 92% of its initial investment within the next 90 to 120 days through the Asset Sale and the conversion of US$17.5 million working capital into cash. Further, the Company expects to recover all of its investment including acquisition related expenses within six months through increased revenue from Hodges' customers and reduced pricing pressure. Accordingly Aveda expects a 100% payback on its investment within six months." "Hodges' gross revenue peaked at approximately US$166.0 million in 2012, dropping to US$139.4 million in 2013 and $123.7 million in 2014. EBITDA was US$34.0 million in 2012, US$13.6 million in 2013 and US$14.1 million in 2014. On a combined basis, Hodges' and Aveda's 2014 gross revenue would make it the largest rig moving company in North America (by gross revenue)."
  5. West would you be willing to disclose some of the other small-cap Japanese names you hold besides Fujimak? It's an area I keep meaning to explore in more detail but have always deferred on because of the limits on due diligence for an English-only speaker.
  6. The move in MEI is largely due to the publication of a Seeking Alpha Pro article on the name. I would be inclined to fade it in the short term.
  7. SEDI does shows current ownership position, although the functionality of the site does leave much to be desired. Go to the "view summary reports" header and then select the report type "insider information by issuer" and search by the company name. This will give you the current ownership position for all insiders and 10%+ holders.
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