Thanks for another great informative post jk!! I read up on...

Thanks for another great informative post jk!!

I read up on Foxconn early this year and the prospect of them opening manufacturing and technology facilities in Wisconsin, but I haven’t seen or heard any news of it going ahead since. At the time I posted something to the effect that the jobs it would create could aid in appeasing the ‘Donald’ and help the trade war dispute in some way, but now (three months after the ‘Donald’ said they will reach an agreement soon) I believe it’s significance is only minor in the the trade war. Interesting is that the ‘Donald’ wants Xi to remove subsidies to Chinese firms in China while he wants to subsidise Foxconn in the US!!

I think Foxconn’s greatest contribution to IDG is in their logistics when it comes to transporting LNG containers, but a multibillion dollar company buying $US190 Million worth of shares isn’t that much, and when it comes to the logistics of LNG container shipping, they are still in their infancy as far as I can tell.

I also think talk of a resolution to the trade war is just more of the same old drip fed speculation that we’ve heard since the start of the year. They make some headway on enforcement and technology (doesn’t mean they’ll reach an agreement) but there are other major issues relating to the lifting of tariffs that they are not mentioning. The ‘Donalds’ not in a hurry to give up his leverage and President Xi is a long player who is still making moves at home and in other parts of the world.

Back to LNG, long term contracts are indexed to the price of Brent and the spread between oil prices and spot prices has increased tenfold. LNG traders are forecasting the decline of long term contracts, predicting greater market transparency, and spot pricing making up 50% of contracts by 2025. GV mentions LNG’s relationship with HH pricing but that’s as far as his explanations go.

Some on the threads think he is a star but the more I see him talk the less impressed I get. Apart from GV going to Shanghai recently I can’t see where a lot of spending has occurred, yet I have a feeling that the Interim Report due will show our financial situation has deteriorated quite a bit, and although they like to change the way they declare expenses, we are approaching a balance near or below the level it was when the CR with IDG occurred.

I’m happy to see the share price up Wednesday and today, but unfortunately I’ve become more cynical from reading soooo much BS for months on end and whats more interesting to me will be if the rush of blood continues to the head after the Interim Report and a possible trade war ‘let down’ or whether that sinking feeling will return!!

Thanks again jk for giving us some facts!!