The Australian

@TeTeTe meet Ben McGarry - you will get along like house on fire. You are no longer standing alone, per your gandhi quotes.

LNG’s rise and rise

"Gas burns can be nasty. Just ask Ben McGarry, who runs Sydney fund manager Totus Capital. McGarry went short on gas group LNG Limited last year but was forced to withdraw as the share price kept rising.

From a low of 12c in 2013, scrip has soared to about $4.80, despite the fact the company has lost money for the past four years. Investors clearly believe in the company’s dream of running gas plants using its patented high-efficiency process.

For example, last July it announced it had spent $US11m buying an import terminal at Bear Head in Canada that it planned to refit into an export terminal. The shares soared 21 per cent, adding about $400m to the company’s value.

“It’s the most incredible value creation I’ve ever seen,” McGarry told Margin Call. “I just want to know how they do it.”

He confirmed Totus’s Alpha Fund had come back for another go-around, again opening up a short position.

LNG’s proposed gas plant in Gladstone has been mothballed — there’s a glut in the market, with three already up and running in the area — and there are other clouds on the horizon.

Last Thursday, Carlyle Group’s hedge fund Claren Road announced it had sold down below 5 per cent and on Friday the company said it had burned through another $13.7m in cash.

Shares went, er, up, by more than 15 per cent."