Why Shares of Golar LNG Limited Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of LNG company Golar LNG Limited (NASDAQ: GLNG  ) jumped as much as 10% today after reporting earnings.

So what: Revenue was up slightly sequentially, to $17.3 million, and easily beat the $12.8 million level Wall Street expected. Net income of $4.3 million also easily exceeded the $5 million loss that analysts expected. 

Now what: The surprise profit did include a non-cash gain of $13.2 million on interest-rate swaps, which isn't exactly a consistent driver of value. Investors are expecting earnings to double next year, but even if they do, shares are trading at 46 times forward estimates. That's too much for me to pay for the stock right now, and I need to see more growth before jumping in.

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  • Report this Comment On March 03, 2014, at 9:41 AM, famulla wrote:

    Here is the deal entered into to get Ukraine to give up its nuclear weapons deterrent.Signed by B Clinton.Notice that paragraph 4 is totally unenforceable given that Russia has veto power at the UN

    Budapest Memorandums on Security Assurances, 1994

    Published December 5, 1994

    Memorandum on Security Assurances in Connection with Ukraine’s Accession to the Treaty on the Non-Proliferation of Nuclear Weapons

    Memorandum on Security Assurances in Connection with Belarus’ Accession to the Treaty on the Non-Proliferation of Nuclear Weapons

    Memorandum on Security Assurances in Connection with Kazakhstan’s Accession to the Treaty on the Non-Proliferation of Nuclear Weapons

    Statement

    Joint Declaration by the Russian Federation and the United States of America, December 2009

    The Presidents of Ukraine, Russian Federation and United States of America, and the Prime Minister of the United Kingdom signed three memorandums (UN Document A/49/765) on December 5, 1994, with the accession of Ukraine to the Treaty on the Non-Proliferation of Nuclear Weapons. Through this agreement, these countries (later to include China and France in individual statements) gave national security assurances to Belarus, Kazakhstan and Ukraine. The Joint Declaration by the Russian Federation and the United States of America of December 4, 2009 confirmed their commitment.

    Excerpt:

    "Welcoming the accession of Ukraine to the Treaty on the Non-Proliferation of Nuclear Weapons as a non-nuclear-weapon State,

    Taking into account the commitment of Ukraine to eliminate all nuclear weapons from its territory within a specified period of time,

    Noting the changes in the world-wide security situation, including the end of the cold war, which have brought about conditions for deep reductions in nuclear forces,

    Confirm the following:

    1. The Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America reaffirm their commitment to Ukraine, in accordance with the principles of the Final Act of the Conference on Security and Cooperation in Europe, to respect the independence and sovereignty and the existing borders of Ukraine;

    2. The Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America reaffirm their obligation to refrain from the threat or use of force against the territorial integrity or

    political independence of Ukraine, and that none of their weapons will ever be used against Ukraine except in self-defence or otherwise in accordance with the Charter of the United Nations;

    3. The Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America reaffirm their commitment to Ukraine, in accordance with the principles of the Final Act of the Conference on Security and Cooperation in Europe, to refrain from economic coercion designed to subordinate to their own interest the exercise by Ukraine of the rights inherent in its sovereignty and thus to secure advantages of any kind;

    4. The Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America reaffirm their commitment to seek immediate United Nations Security Council action to provide assistance to Ukraine, as a non-nuclear-weapon State party to the Treaty on the Non-Proliferation of Nuclear Weapons, if Ukraine should become a victim of an act of aggression or an object of a threat of aggression in which nuclear

    weapons are used;

    5. The Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America reaffirm, in the case of Ukraine, their commitment not to use nuclear weapons against any non-nuclearweapon State party to the Treaty on the Non-Proliferation of Nuclear Weapons,

    except in the case of an attack on themselves, their territories or dependent territories, their armed forces, or their allies, by such a State in association or alliance with a nuclear-weapon State;

    6. Ukraine, the Russian Federation, the United Kingdom of Great Britain and Northern Ireland and the United States of America will consult in the event a situation arises that raises a question concerning these commitments.

    This Memorandum will become applicable upon signature.

    Signed in four copies having equal validity in the Ukrainian, English and Russian languages.

  • Report this Comment On March 03, 2014, at 9:48 AM, famulla wrote:

    The promise to reduce net migration to the "tens of thousands" was a foolish one for the Conservative Party to make, and so, yesterday, it was proved. David Cameron was warned before the 2010 election that the pledge made no sense, arithmetically, politically or economically. Arithmetically, it made no sense because tens of thousands can be added up to make millions. That problem at least was solved easily, because the Tory leader accepted the implication and stated his intention to bring net migration to below 100,000 a year.

    Politically, the promise made no sense because Mr Cameron was setting a target, despite his insistence in other areas of public policy that "top-down targets" distorted priorities and produced perverse incentives. In this case, he was setting a target that simply could not be delivered. The 100,000-a-year figure is the difference between two large numbers, of immigrants and emigrants – both of them estimates because we do not count people in and out of the country, and neither of them controlled by the Government. He was, therefore, failing the two cardinal rules of politics, the first of which is never to promise what you cannot deliver, and the second of which is always to manage expectations.

    Worse, to the extent that the target figure can be predicted, even if it cannot be controlled, it was always likely to go up by the time of the election. The economy is the main influence on both emigration and immigration. Emigration increased in 2008 and the first half of 2009 as unemployment rose and people sought to improve themselves in other countries. Since then, and as the economy has slowly and fitfully recovered, the number of people leaving has fallen back.

    Interestingly, immigration did not slow down until late 2011

  • Report this Comment On March 03, 2014, at 10:00 AM, famulla wrote:

    Nice start ... but, just a "warm-up" in my opinion. Let's add the following ...

    1. Get Europe off its duff. Extend IMMEDIATE EU membership to all Eastern European nations that want it -- starting with UKRAINE and GEORGIA. Work out your issues later. Your survival (should be) a great motivator.

    2. IMMEDIATE massive GLOBAL deployment off an advanced, intergrated short & long range missile defense shield for ALL nations (allies) around the world that want it. There are enough bad actors around that this is LONG overdue -- and the sky will become exponentially more dangerous without it. Explain to China, that yes .. it too must now suffer because of Mr. Putin's inability to play nice. I am sure Japan and Asia would welcome it.

    3. Make it in China's best economic interests to tangibly let Mr. Putin know they are displeased that his obnoxious behavior is hurting business. Don't want to hurt business in Chain .... no, no, no ... got to keep those factories humming...

    4. IMMEDIATELY REVOKE any planned trade agreement status with Russia. Isolate Russia economically using every means available.

    5. No natural gas for Europe?? Well, we may have a hard time getting those food shipments to you.... No power / no heat ... no much we can do there ... sorry ..... we have to focus on other things....

    6. IMMEDIATE NATO membership to all Eastern European nations desiring it --- starting with UKRAINE and GEORGIA -- then adding in the BALTICs.

    7. ... And lest we forget ... demand the IMMEDIATE withdrawal of all Russian troop not only from UKRAINE but from GEORGIA as well ... BTW, Mr. Putin, you have 72 hours to get it done.

    ... and let's delete ...

    ALL of the carrots. Carrots are earned ... they are not gifts for recalcitrant children.

  • Report this Comment On March 03, 2014, at 10:00 AM, famulla wrote:

    Nice start ... but, just a "warm-up" in my opinion. Let's add the following ...

    1. Get Europe off its duff. Extend IMMEDIATE EU membership to all Eastern European nations that want it -- starting with UKRAINE and GEORGIA. Work out your issues later. Your survival (should be) a great motivator.

    2. IMMEDIATE massive GLOBAL deployment off an advanced, intergrated short & long range missile defense shield for ALL nations (allies) around the world that want it. There are enough bad actors around that this is LONG overdue -- and the sky will become exponentially more dangerous without it. Explain to China, that yes .. it too must now suffer because of Mr. Putin's inability to play nice. I am sure Japan and Asia would welcome it.

    3. Make it in China's best economic interests to tangibly let Mr. Putin know they are displeased that his obnoxious behavior is hurting business. Don't want to hurt business in Chain .... no, no, no ... got to keep those factories humming...

    4. IMMEDIATELY REVOKE any planned trade agreement status with Russia. Isolate Russia economically using every means available.

    5. No natural gas for Europe?? Well, we may have a hard time getting those food shipments to you.... No power / no heat ... no much we can do there ... sorry ..... we have to focus on other things....

    6. IMMEDIATE NATO membership to all Eastern European nations desiring it --- starting with UKRAINE and GEORGIA -- then adding in the BALTICs.

    7. ... And lest we forget ... demand the IMMEDIATE withdrawal of all Russian troop not only from UKRAINE but from GEORGIA as well ... BTW, Mr. Putin, you have 72 hours to get it done.

    ... and let's delete ...

    ALL of the carrots. Carrots are earned ... they are not gifts for recalcitrant children.

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