Member Info for chilting

CO2 is also used in abattoirs to stun Chickens and Pigs prior to slaughter - hence the supply problem.

Brent comfortably over $75 again now.

The fears of earlier in the week seem to be behind us, but the Chinese Government still have major problems with their construction sector that will more than likely turn into a major Banking crisis - just hope that contagion doesn't spread westward.

Its a 9.8 hectare site, so assuming Ocado are going to occupy the whole site, its certainly big enough for a CFC, probably a full size one to service the whole of the Scottish Lowlands right up to Aberdeen.

Neil
Last year and earlier this year OCDO was heavily overbought as a result of investors over enthusiasm and high sentiment.
The SP now has everything negative priced in, including the court case, and will quickly accelerate back into the 2000's on good news - now is an ideal entry point, your trees will be safe.

The potential is massive here.

Its an irony that tiny little EQTEC could have averted a national crisis if Billingham had been up and running - CF could have carried on producing fertiliser and the essential CO2 needed to feed the nation.

Maybe CF could provide some funding to accelerate the project in return for discounted gas from the plant.

Good entry point Neil - especially after today's strong bounce back - you choose exactly the right time with MKS, why not give OCDO a go now?

Kraken
The point is that Enquest's SP is so low now that it has to get better by default - even small reductions in debt should do that - at least that's the theory with Brent around the level it is now - but progress is painfully slow and always liable mishap.

Here's a new business opportunity for EQTEC - a partnership with Dignity might be on the cards.

https://www.bbc.co.uk/news/av/science-environment-58587691

The question is ..
Has the GE acquisition repaired the damage done to Enquest as a result of the latest declines in production?

I would say yes, but sentiment was shaken as a result of the last update - its a great pity that completion of GE wasn't included in the update.

So, will the SP increase when GE completes? - Yes - but the full benefit won't be seen until the next trading update when the next set of production numbers are published - I guess we will be lucky to see 26p as a result of the GE RNS.

The GE deal has taken a long time to complete - not sure Why?

It will certainly be interesting to see the tone of the RHS to test out the theory that Enquest want to keep the SP low - this is probably the most positive news that the company have had for years.

I wonder if Ocado's two biggest shareholders were buyers yesterday?

Good clarification from David Palumbo on EQTEC's role in project development and the subsequent de-risking at the development stage - the Kibo deal makes perfect sense now. It enables EQTEC to invoice for development costs at an early stage.

Also it seems that the gas produced when the Billingham plant goes into production will go next door to the CF fertiliser manufacturing plant - I guess they could do with it now, big time!

So, their is a major impetus to get Billingham built and then find the next 4 or 5 Billingham's for 2022 - all good news!

US markets bounced back just before close - the consensus now seems to be that Evergrande will remain just a Chinese problem and probably won't spread contagion elsewhere other than to certain sectors, notably mining.

So, hopefully we could see a bounce back tomorrow - this morning could have been the years low - fingers crossed.

If Chinese demand for oil does fall, I don't that will have a major impact on the oil price other than push it back nearer to $65.

The net effect will simply be to halt the OPEC+ timetable of increasing post pandemic supply and maybe even reversing it if necessary.

It underlines just how much control OPEC+ have of the oil market without the US pushing the market into over supply.

Hopefully if this equilibrium can be maintained it will help with the transition to renewables, with the oil giants like BP making profit from oil and investing some of it into high capital spend renewables. Even Enquest could play its part in the transition if a suitable opportunity presented itself - that would get the SP moving.

mrc
Just keep everything crossed - with one black swan taking flight, the last thing we want is another.

Brent did very well today - normally when markets fall, it leads the way down.

Apparently only Citibank have significant exposure to Evergrande in the west but the problem is that contagion spreads - just like Covid - back to black swans again!

I think my guess that its Ecover is still valid - they are a Belgian company.

The Chinese construction industry was worth 1,049 billion U.S in 2020 - Evergrande is a major player.

https://www.ft.com/content/952923b7-f421-407e-b14a-ad2ff190a134

Today's fall is market led rather than Ocado.

The Chinese have MAJOR debt problems with their construction industry - specifically Evergrande - this is spooking the market with memories of 2008.

As long as Evergrande remains a Chinese problem then we are OK, but I guess there are a lot of western investors also tied up here - maybe including some western Banks - we all know what happened in 2008.

If we do get a big dip it may be better to wait for the bottom and then pile in with AHT - I missed that one in March 2020 - it rebounds very quickly and has excellent broker ratings.