Syntroleum SYNM

[SundialMan]

This stock broke above its 200 day moving avg. today because they just signed a deal with the Chinese state oil co. Synopec (I believe that's the name: it's in the press release at the Yahoo boards).

They make synthetic oil from coal, using (a probably updated version of) the methods Germany used in WWII to turn its vast coal holdings into oil. The US Air Force just did a successful test of Syntroleum's jet fuel a few days ago with a B-52...at the freezing Minot airbase in the Dakotas. In flight tests had the fuel passing with flying colors. But the price per gallon is very high. If they could get a contract with the airlines, they could build out a factory and reduce the cost per gallon considerably. Well, China also likes the idea of depending less on foreign oil and using their native coal resources. I don't know if they have a method to use on shale oil deposits, but it could be true either today or in the future.

This is a small company, a $3+ stock, so obviously they aren't Exxon or Occidental Petroleum. But they could become a lot bigger in today's world. Do your own due dilligence. This is somewhat of a speculation, but I believe the rewards will outweigh the risks.

Any other opinions out there? I know you've got them.

Jack

[SundialMan]

Here are the story links. First, the Chinese deal for Syntroleum:

http://biz.yahoo.com/bw/070220/20070220005755.html?.v=1

And the Air Force Test in North Dakota:

http://www.forbes.com/feeds/ap/2007/02/17/ap3436370.html

[SundialMan]

Forgot to mention that Yahoo shows Syntroleum as having a 12% shorting position. That's a lot of shorts. Good news could cause a significant short squeeze - and I'm not "guaranteeing" that. Also, they have a 50% Institutional ownership with approx. 10% Insider ownership. Those aren't bad things to have, either.

Jack

[peanuts]

Hey Man,

Did you see this? LINK

If you go to www.rentechinc.com they have alot of info on Coal-To-Liquid technology, as well as this link from riverbabe: http://www.htigrp.com/hydrocarbon.asp

Seems promising... people say more efficient than ethanol.

[SundialMan]

Peanuts, thanks for the links. Ethanol - from corn - is a "feel good" product. It can not be transported by pipeline, so it has to be trucked long distances, wasting more fuel. It has driven up the price of corn to the world's poor people and will soon be significantly driving up the price of food to America's middle class, as well. Fortune magazine wrote a politically correct puff piece about how sugar cane ethanol made Brazil energy independant, but Investors Business Daily had a follow up a while later saying it was increased oil drilling in the country and offshore that made the difference with ethanol only producing around 15% of Brazil's needs.

Ethanol today is an early stage technology. When they produce it from wood chips, tree branches and sawdust, they will have a savings. But maybe that will drive up the price of lumber at Home Depot and the price of paper company stocks.

[New-born baby]

Much better choice than Ethyl

This is a much better choice than ethanol: better milage, power and fewer emissions. I do not understand--except for perhaps political reasons (i.e. Washington wants to boost the farmer rather than Arch Coal)--why this technology is not developed. I like the company and the idea.

[MEA_1956]

Go Coal

As I set in front of the crossing arms today, on my way to the bank, my first thought was is this coal train going to get another load of my coal. Cramer was talking about Arch one night, so I made a mental note, & started watching it selloff. So I picked a botton at $30.10 in hpoes to see a greener day in it's near furture. A few days later Cramer was on again and a few min. after that the CEO showed up. Might be a good sighn. Marlin