Re: PPY - costs
Samsung
Well even though I added this morning to PPY at $4.87 I would not defend this management team. The best we can hope for is that management learned from its mistakes. The way I see it you just cant grow production at 80% when the demand growth for natural gas is around 2% per year. Its perfectly justified to build in advance of some market opening up, such as LNG export facilities, but to expand at great neck speed into a market that is not growing and do so by overextending their credit line does not seem all that prudent to me. Add to that making an acquisition whose key feature is adding productive land when PPY has that in abundance also looks questionable. Having said that the shares are cheap and worth holding just in case we get LNG exports.
Take care
Jim