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$16.65 -0.55 (-3.20%)
7/3/2008 1:00 PM

Golar LNG Limited (USA) (GLNG)

CAPS Rating:
*****

The Company and with its subsidiaries is engaged in the acquisition, ownership, operation and chartering of LNG carriers.

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Avatar Tastylunch (98.96) Submitted: 12/02/07 10:31 PM : Outperform Start Price: $20.79 GLNG Score: -5.16

Golar has a Humongous dividend that only gets more attractive as interest rates get cut. A Recent new share issue took some of the price out of the stock, however the money gained form the sale was put to good use buying Granatina. Liquefied Natural Gas prices should continue to be strong in sympathy with Crude.

Income investors will like this play which has no exposure to the sub-prime mess.

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Avatar AnomaLee (99.84) Submitted: 3/16/08 4:11 AM

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I wonder how much of their business goes to China and other foreign markets. I think energy transports are overdone

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Avatar Tastylunch (98.96) Submitted: 3/17/08 11:32 PM

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they very well could be overdone Anomalee, all winners look like suspects in this fearful market. A lot has changed since I made my pitch. I don't like most of the shippers now especially DRYS. Mainly I like Golar's dividend but that's significantly less attractive now since they heavily diluted it to buy the Granatina. That being said I think Golar's stock has mainly been hurt (besides dilution) not by commodity prices but by delays in their LNG conversions for transport.

To my knowledge Golar mainly does operate primarily in the international sector , they scored a big contract with Brazilian company recently and I believe they just initiated a project near Livorno Italy.

I'm still bullish on Golar relative to the S&P , it's very very cheap compared to it's 2009 earnings projections (if analyst estimates are to be believed). There are risks, like a global recession, dropping LNG prices and Golar's own poor history of missing earnings expectations. That being said I think Golar is in better shape than the banks that comprise a good portion of the S&P, and if the commodity supercycle continues that only helps them as well.

I'm extending my timeline on this, I think this stock will do pretty well in 2009 , might be a little rough here in 2008 especially if LNG prices turn against them. We shall see.

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