Wednesday, October 3, 2012

Fracking

A large chunk of my day is spent reading and quite often, I read about US companies or fund managers. Today, I found a wonderful report courtesy of market folly.

The fund does a semi-Graham approach, but more like the Klarman approach.

His presentation shows that US is now a net exporter of petroleum based refined products.
Also shows that the Gas, Crude differential is at its highest of 6x.
This, in turn (possibly) shows what went so wrong with Reliance Industries - they thought they would get a decent price for their gas...

I like the fact that when most managers tend to go for the more visible commodity plays, he is going for the supplier of services. 

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