Anybody Buying Yet? Where’s the Bottom?

[Deleted member 28227]

China is making bank flipping Russian LNG to Europe. Crazy world we are living in!

China Is Quietly Reselling Its Excess Russian LNG To Europe | OilPrice.com

China has been quietly reselling Russian LNG at a major mark up to gas-hungry European customers

oilprice.com

2.16 Billion of LNG with a 100 MM profit.

Lols… man folks over there are getting desperate for things to write about

 

[BigHornRam]

2.16 Billion of LNG with a 100 MM profit.

Lols… man folks over there are getting desperate for things to write about

"China’s JOVO Group, a big LNG trader, recently disclosed that it had resold an LNG cargo to a European buyer.

A futures trader in Shanghai told Nikkei that the profit made from such a transaction could be in the tens of millions of dollars or even reach $100mn."

Up to 100 million isn't a bad profit for one cargo load.

 

[Deleted member 28227]

"China’s JOVO Group, a big LNG trader, recently disclosed that it had resold an LNG cargo to a European buyer.

A futures trader in Shanghai told Nikkei that the profit made from such a transaction could be in the tens of millions of dollars or even reach $100mn."

Up to 100 million isn't a bad profit for one cargo load.

Maybe it's interesting, but the authors numbers + conclusions don't make sense.

"In July, the SCMP reported that according to Chinese customs data, in the first six months of the year, China bought a total of 2.35 million tonnes of liquefied natural gas (LNG) – valued at US$2.16 billion. The import volume increased by 28.7% year on year, with the value surging by 182%. It meant Russia surpassed Indonesia and the United States to become China’s fourth-largest supplier of LNG so far this year."

Ok so $2.16 Billion for 2.35MM tones

"Local media have said that Sinopec alone has sold 45 cargoes of LNG, or about 3.15mn tones. The total amount of Chinese LNG that has been resold is probably more than 4mn tones,"

So half of what they are selling came from... cause per the article it's not Russia... could be the US or Indonesia or....

They are saying the value is... $1.04 B per M ton
4MM/45 shipments = 88,888 tons per shipment
China is buying the shipment for $92,444,444 so they are 2x-ing the value of the shipment... if it's Russian LNG but it's not all Russian LNG and we don't know per the article where the other 1.65MM tones came from or the price.

But even if it did all come from Russia....



There is a 9X differential right now US to Europe

Soooo yeah... not really that great a payout.

"Energy companies and traders are raking in huge profits selling US natural gas to Europe as prices on the continent skyrocket, with a single shipment netting around $200 million of profit, according to industry experts."

Energy traders are making a killing exporting US natural gas to Europe as prices soar - with some single shipments bringing in $200 million

"You're not talking about a margin. You're talking about a multiplier," one expert said about the huge earnings on offer. "All in all, it's insane."

markets.businessinsider.com

 

[BigHornRam]

Maybe it's interesting, but the authors numbers + conclusions don't make sense.

"In July, the SCMP reported that according to Chinese customs data, in the first six months of the year, China bought a total of 2.35 million tonnes of liquefied natural gas (LNG) – valued at US$2.16 billion. The import volume increased by 28.7% year on year, with the value surging by 182%. It meant Russia surpassed Indonesia and the United States to become China’s fourth-largest supplier of LNG so far this year."

Ok so $2.16 Billion for 2.35MM tones

"Local media have said that Sinopec alone has sold 45 cargoes of LNG, or about 3.15mn tones. The total amount of Chinese LNG that has been resold is probably more than 4mn tones,"

So half of what they are selling came from... cause per the article it's not Russia... could be the US or Indonesia or....

They are saying the value is... $1.04 B per M ton
4MM/45 shipments = 88,888 tons per shipment
China is buying the shipment for $92,444,444 so they are 2x-ing the value of the shipment... if it's Russian LNG but it's not all Russian LNG and we don't know per the article where the other 1.65MM tones came from or the price.

But even if it did all come from Russia....

View attachment 237337

There is a 9X differential right now US to Europe

Soooo yeah... not really that great a payout.

"Energy companies and traders are raking in huge profits selling US natural gas to Europe as prices on the continent skyrocket, with a single shipment netting around $200 million of profit, according to industry experts."

Energy traders are making a killing exporting US natural gas to Europe as prices soar - with some single shipments bringing in $200 million

"You're not talking about a margin. You're talking about a multiplier," one expert said about the huge earnings on offer. "All in all, it's insane."

markets.businessinsider.com

If you can't baffle them with brilliance, baffle them with bull shit! You crack me up wllm.

 

[Deleted member 28227]

If you can't baffle them with brilliance, baffle them with bull shit! You crack me up wllm.

...


....


so like how wholesale works?

...

You know like the profit margin of every retailer? It definitely sucks for Europeans and OG arbitrage is nuts these days... but in the grand scheme of things pales in comparison to even what US companies are doing.

 

[ETH]

Sure looking that way right now!

Anyone taking directional bets, long or short, is ignoring risk. Some decent risk/reward out there in niche stuff like energies or ferts, but nothing no-brainer anymore.

 

[BigHornRam]

...


....


so like how wholesale works?

...

You know like the profit margin of every retailer? It definitely sucks for Europeans and OG arbitrage is nuts these days... but in the grand scheme of things pales in comparison to even what US companies are doing.

Profit margins at Bed Bath and Beyond don't look so great........

Bed Bath & Beyond is a mess right now, source says

Bed Bath & Beyond may want to bus some of those 65% off private label towels it's currently selling to its New Jersey headquarters because there appears to be a mess in need of a cleanup.

finance.yahoo.com

 

[Sytes]

Some interesting side games playing out for the media to chew...

Russia to hold sweeping joint war games with China, others

The Russian military says it will launch sweeping military drills in the country’s east that will involve forces from China.

apnews.com

 

[noharleyyet]

Some interesting side games playing out for the media to chew...

Russia to hold sweeping joint war games with China, others

The Russian military says it will launch sweeping military drills in the country’s east that will involve forces from China.

apnews.com

Good post Charles...tit/tat
The drills reflect increasing defense ties between Moscow and Beijing, which have grown stronger since Russia sent its troops into Ukraine on Feb. 24. China has pointedly refused to criticize Russia’s action, blaming the U.S. and NATO for provoking Moscow, and has blasted punishing sanctions imposed on Moscow.

Russia, in turn, has strongly backed China amid the tensions with the U.S. that followed a recent visit to Taiwan by U.S. House Speaker Nancy Pelosi. Speaking earlier this month, Russian President Vladimir Putin drew parallels between U.S. support for Ukraine and Pelosi’s trip to Taiwan, charging that both were part of alleged American efforts to foment global instability.

 

[BigHornRam]

Anyone taking directional bets, long or short, is ignoring risk. Some decent risk/reward out there in niche stuff like energies or ferts, but nothing no-brainer anymore.

Hibernation seems like the safest strategy right now.......

 

[SAJ-99]

Sure looking that way right now!

Respect the reversal.

 

[Sytes]

Good post Charles...tit/tat
The drills reflect increasing defense ties between Moscow and Beijing, which have grown stronger since Russia sent its troops into Ukraine on Feb. 24. China has pointedly refused to criticize Russia’s action, blaming the U.S. and NATO for provoking Moscow, and has blasted punishing sanctions imposed on Moscow.

Russia, in turn, has strongly backed China amid the tensions with the U.S. that followed a recent visit to Taiwan by U.S. House Speaker Nancy Pelosi. Speaking earlier this month, Russian President Vladimir Putin drew parallels between U.S. support for Ukraine and Pelosi’s trip to Taiwan, charging that both were part of alleged American efforts to foment global instability.

Actually, while this holds the undertones for global financial instability, I intended this for the Russia vs Ukraine thread. Apologies all.

 

[noharleyyet]

Actually, while this holds the undertones for global financial instability, I intended this for the Russia vs Ukraine thread. Apologies all.

Both threads are intrinsically superimposed. #putinsfault

 

[Huntkook]

 

[SAJ-99]

Sold my DWAC at lunch, it was pure luck..... nothing more.

Hope you didn't get back into this train wreck. It is a good example of the problem with the "democratization of finance". There is no rational reason to own the stock and NOT vote for the extension. The only excuse these holders have is they didn't know they had to vote. Not sure how you protect retail investors from themselves.

 

[schmalts]

Hope you didn't get back into this train wreck. It is a good example of the problem with the "democratization of finance". There is no rational reason to own the stock and NOT vote for the extension. The only excuse these holders have is they didn't know they had to vote. Not sure how you protect retail investors from themselves.

No. Took my profit and ran a long time ago

 

[Deleted member 18333]

Hope you didn't get back into this train wreck. It is a good example of the problem with the "democratization of finance". There is no rational reason to own the stock and NOT vote for the extension. The only excuse these holders have is they didn't know they had to vote. Not sure how you protect retail investors from themselves.

My wife bought DWAC around a year ago for near $10/share. For a while she was quite proud of herself for this purchase. Asked her last night if she still had it. She does. She had no idea about the extension, a vote, nothing. SMH

 

[SAJ-99]

My wife bought DWAC around a year ago for near $10/share. For a while she was quite proud of herself for this purchase. Asked her last night if she still had it. She does. She had no idea about the extension, a vote, nothing. SMH

The funny part is she can still get out of that disaster at $23.

 

[Deleted member 18333]

The funny part is she can still get out of that disaster at $23.

Her buy, her choice. But after 17 yr of marriage I say she wont quit any time soon.

 

[npaden]

I really came close to pulling the trigger on selling a bit today. If we have another day tomorrow like today I'll going to pull the trigger on some.