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Energy Industry Icon Calls Markets Overvalued and Overbought; Energy Commodities Especially at Risk

Posted on: Tuesday, 15 September 2009, 12:57 CDT

MIAMI, Sept. 15 /PRNewswire/ -- Karl W. Miller, a senior energy executive and institutional investor, today issued the following statement through his advisor VBCC, Markets Overvalued and Overbought; Energy Commodities Especially at Risk.

Mr. Miller agrees with Mr. Art Cashin's, director of floor operations at UBS Financial Services, statements today that the equity markets are substantially overvalued and overbought.

Earlier today, Mr. Miller predicted that natural gas will correct to the $2.50 to $2.75 mmbtu price range and will continue getting cheaper, as there will be no sustainable drivers either by natural gas fired electricity generation or industrial demand in the U.S. for the next 6-8 quarters.

In line with Mr. Cashin, Mr. Miller expects the natural gas pipeline companies, master limited partnerships (MLPs) and natural gas producers will suffer substantially reduced earnings during the next 6-8 quarters and are also substantially overvalued at the current time.

Mr. Miller retains a sell recommendation on U.S. publicly listed renewable energy companies. He predicts we will see many of these companies, which are reliant upon massive government subsidies, state approval of pass through price increases, and highly levered fail and/or will be purchased at distressed prices.

About Mr. Miller

Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980's and has an extensive background in banking, commodities trading and risk management.

Mr. Miller has a long history in the global energy business and has held a variety of executive management positions both within the United States, Europe and Asia. Mr. Miller has bid on over $25 billion in energy related assets during his career.

Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricity de France, El Paso Energy, Enron Corporation and JPMorgan Chase.

Mr. Miller holds an MBA in Finance from the Kennan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington DC.

Mr. Miller is currently on medical leave until late 2009.

SOURCE VBCC

Source: PR Newswire

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