Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (26471)	10/19/2003 9:07:56 AM
From: Aggie	Read Replies (1) \| Respond to of 206085

dabum3, Welcome back. I can't tell you the specifics of SSL, it looks like they're reasonably diversified, but in general, companies that have invested in Fischer-Tropsch synthetic fuels are not profitable until the cost of crude is pretty high. Another such company is Syntroleum - they've been struggling for years to find the backing for a small commercial-sized plant to prove the viability of the process. Even with crude trading north of $31, the economics are pretty shaky. Contrast that to LNG, where 20-year forward contracts are the norm in order to justify the risk of the investment (in the billions) - all profitable at Henry hub above around $2.75 Why spend the money to turn gas to liquid fuel, a commodity with lots of competition, when you can lock in a 20 contract at current prices and make a good return? The only thing synthetic fuels have going for them is their low sulphur content - not something that is generally regulated too stiffly. I looked at Syntroleum for a while, asked some questions of my compadres in the downstream sectors and moved on. <OT> Looks like the BoSox couldn't shake their destiny, eh? Wait 'till next year.. Regards to All, Aggie

To: chowder who wrote (26471)	10/19/2003 3:40:35 PM
From: Mark Adams	Respond to of 206085

I originally happened on Sasol a couple of years ago, when searching the net turned up a paper on gold catalysts. Their exposure in GTL (doing a project in/for Quatar?) and clean coal technology caught my eye, and I dipped my toes in a time or two for small profits. That said, I haven't followed the company as closely as I probably should, and currently have no position in their stock. a reference on GTL, for the peanut gallery dieselnet.com