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🦧 where is the nickel tho

www.wiseape.fyi

🦧 where is the nickel tho

Ape of Omaha
Feb 13
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🦧 where is the nickel tho

www.wiseape.fyi

StockAlgos

"one of the best, affordable stock research platforms that hosts stock picking competitions”

🏢 who is trafigura?

trafigura group is a singapore-based commodity trading firm, focusing on base metals and energy

  • per bloomberg, the firm offers trading services for crude oil, gasoline, condensates, ores, refined metals, coal, ore, etc.

  • unlike many institutions that trade commodities futures that do not involve the physical transportation of commodities, trafigura's business is moving physical commodities and distributing in a reliable manner

 
 

⚠️ “systematic fraud”

  • trafigura found last week that it has fallen victim to a fraud (aka "containers came without nickels in them") costing more than half a billion dollars

  • as nickel's shown promising growth in demand throughout the pandemic (and perhaps for a while) as it is crucial in electric vehicle production, trafigura's been a huge winner in this pandemic and chaotic energy market period (caused by the russia-ukraine war)

    • the firm profitted $7b last year and $1.6b in 2020

  • trafigura believes the perpetrators of the fraud include companies controlled by the metals trader prateek gupta, including TMT Metals and subsidiaries of UD Trading Group

 
 

😔 it’s not the first time

*per wsj
  • 2014: missing copper at the qingdao port - led to banks suing commodities trader to whom they had lent money

  • 2020: collapse of singaporean oil merchant hin leong trading

  • trafigura said it's on track to still beating its profit from h1 of 2021, and the company's bond price only slumped ~2% following the news

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💡 something im thinking about

the demos here are quite solid (click image)

as always, i’m no financial advisor! (i’m no substitute for professional financial services)
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🦧 where is the nickel tho

www.wiseape.fyi
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