takeover target, page-35

Nice post denny,

For every share we invest into, there is always risk involved both externally and internally. For one, NXS is clinging onto a large chunk of debt. However, what is most important is that the underlying value is much higher than the market cap; meaning SP has the potential to rise fast if targets are met. NXS have plenty of upside in a world where the thirst of energy never clenches.

NXS have gone so far, production is nearing, and reserves are there, a solid future ahead for growth in a sector backed by strong demand! Look at the news around you, LNG that, LNG this, Gas here, Gas that, China buying that, LNGggg..ggasss. I believe long term NXS will do very well.. and further on the note... Wouldn't the cutbacks in energy demand as the result of the credit crunch impact prices in the next year or two?

All the best to all holders,


LM


Interesting report to read “Natural Gas Market Review”
http://www.iea.org/textbase/nppdf/free/2008/gasmarket2008.pdf?bcsi_scan_908F32D8DCB9909E=0&bcsi_scan_filename=gasmarket2008.pdf

Some extracts:

1) In LNG similar trends can be seen, with a significant amount of capacity being planned but not all projects actually proceeding. Major delays afflict many projects with some cancellations such as the Baltic LNG project announcement from Gazprom. The dearth of FID in new LNG projects since mid-2005 means
that any major post-2012 expansion of capacity is more likely to slip toward 2015. Notwithstanding the massive expansion in LNG that will occur in the decade 2002 to 2012, the lag in LNG investment beyond 2012 is a concern for all gas users in both IEA and non-IEA markets.

2) In the short to medium-term, LNG trade will play a stronger role in all OECD regional markets. In Europe, imports will constitute more than half of total supplies, with LNG expected to reach nearly 20%. In OECD North America, indigenous production will continue to supply more than 90% of expected demand by 2015 yet LNG imports are expected to be more than double 2007 levels. LNG is already pivotal in OECD Pacific.

3) Gas demand for power is growing, particularly in the IEA but also in a number of major producing and consuming non-OECD countries. Gas fired power has dominated supply growth in IEA countries since 2000; this looks set to continue…