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Alexander J. Poulos

 
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  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    maine reader,

    Agreed, best of luck redeploying the funds. You may want to wait for a pullback in some of the similar consumer product makers. Thanks for reading and commenting.
    Apr 30 07:49 PM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    Ensco plc (NYSE: ESV) reported today that diluted earnings per share were $1.25 in first quarter 2014 compared to $1.36 in first quarter 2013. Adjusted for $13 million, $0.06 per share, of certain discrete tax items, first quarter 2014 diluted earnings per share were $1.31.

    Chairman, President and Chief Executive Officer Dan Rabun said, “While earnings per share declined year to year due to lower utilization as certain rigs rolled off contract and planned upgrade projects and surveys increased, we expect to grow earnings per share in future quarters as fleet-wide utilization improves. Major shipyard projects for certain floaters will be completed later this year and our marketing teams are focused on contracting our available rig time. Future earnings will also benefit from the delivery of eight newbuild rigs, which will help to offset recent market pressure that has led to lower floater utilization and market day rates.”

    Mr. Rabun also stated, “First quarter 2014 uptime performance improved significantly with 96% operational utilization across our fleet. In addition, we achieved record first quarter safety performance with a total recordable incident rate of 0.37. This high level of performance is what drives Ensco’s #1 ranking in total customer satisfaction, which we achieved for the fourth year in a row. Fleet high-grading also contributes to customer satisfaction, and in March of this year ENSCO 120 commenced drilling operations under its initial contract. Two more ENSCO 120 Series jackups will commence their initial contracts later this year and a fourth will be delivered in 2016. All four jackups will include our patented Canti-Leverage AdvantageSM technology, which provides significant drilling efficiencies for our customers. Recently, we also placed an order for two ENSCO 140 Series jackups that include enhanced design features, including our proprietary cantilever technology."

    The results show that the sky is certainly not falling on this industry.
    Apr 29 08:01 AM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    momintn,

    Pharma/biotech works far different than any other sector. This is the only sector where you can have a fresh billion dollar plus revenue stream with over 80% profit margins that is patent protected (re monopoly). PFE is paying for the estimated future pipelein revenue, not their existing products so the p/e metric is useless here.

    If you are interested in explosive revenue growth, look at GILD a truly unique opportunity. The drug will generate $10 billion in slaes this year and is expected to somewhat plateau at that level. I suspect they will continue to grow, just not at the same pace as they will this year. Forward p/e is 10-12, which is a bargin. The company doesn't pay a dividend however it has a track record of using their free cash to repurchase shares. Thanks for reading and commenting.
    Apr 28 09:35 PM | 1 Like Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    qniform,

    It sure looks like they are chasing AZN now. when you are chasing after someone, desperate to make a deal you will invariably wind up overpaying. Good for AZN shareholders, big negative for PFE holders although both shares were up today. Great story to follow.
    Apr 28 09:31 PM | Likes Like |Link to Comment
  • How Warren Buffett Failed Coca-Cola Shareholders... And Himself [View article]
    Josh,

    I agree with your comments however I am quite puzzled as to why you continue to own shares in KO. I sold mine in protest over the compensation plan which will quite simply lower my overall returns from owning the security. I detailed my thinking here http://seekingalpha.co... and predictably recieved quite a few negative comments. The best way to protest is to sell and move your money into a different venture.

    As for Mr Buffett, for him to sell his stake in KO would generate a tremendous amount of capital gains which would make it counter productive. The best he could do in the matter is to mention the plan is "excessive" yet hold his nose and vote for it anyways. He has to protect his stake in the company as it is one of the four largest holdings in Berkshire Hathaway. I am not surprised the plan passed, it will be interesting to see if Mr Kent will face additional scrutiny going forward because of it. Enjoyed the article, thanks for writing it.
    Apr 28 07:50 AM | 7 Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    AstraZeneca's (AZN) BOD responds to Pfizer's press release about its offer to buy the former for $76.62/share.According to AZN, Pfizer (PFE) chief Ian Read first contacted Chairman Leif Johansson on November 25, 2103 about a potential combination. Mr. Johansson expressed confidence in his firm's prospects but agreed to meet his counterpart in New York on January 5, 2014. At this meeting Pfizer made a preliminary offer for AZN of £13.98 in cash plus 1.758 shares of PFE stock representing a value of £46.61 ($76.61) per AZN share based on PFE's closing price of $30.52 on January 3. PFE's proposal also included a new U.S. listed and headquartered holding company.AZN's BOD felt that the proposal significantly undervalued AZN and its prospects. It was also concerned that 70% of the deal was PFE stock. Still another problem was the intended inversion structure where PFE would redomicile to the U.K. for tax purposes.On January 12 AZN wrote to PFE rejecting its offer. PFE responded on January 15 that it was no longer actively considering an offer for AZN.The AZN BOD reaffirms its commitment to its strategy announced in March 2013.In the meantime, PFE contacted the U.K. government about the merits of the deal.On April 26 Mr. Read contacted Mr. Johansson requesting they make a joint statement stating they were entering discussions about a combination despite the absence of a new offer. The AZN BOD declined to do so without first seeing a new proposal.Pfizer has scheduled an investor conference call this morning at 8:30 am EDT to discuss the matter.

    This should get quite interesting.
    Apr 28 07:41 AM | 1 Like Like |Link to Comment
  • The Great Bear Market Warrior [View article]
    Eric,

    Thank you for the informative article. I agree with your premise and view the dollar stores as a counter cyclical play. I term them as counter cyclical as they tend to do best when the economy does poorly as evidenced by their performance in 2001-2003 and again in 2008-2010. I prefer DG, as they seem to be better managed and are showing better earnings momentum. I would appreciate your thoughts on DG. Thanks again.
    Apr 25 02:59 PM | 1 Like Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    tc2014,

    In a separate move, I purchased GILD yesterday at $73.58 and sold ABC at $64.62. I wanted to purchase GILD at $68 before its earnings, yet held back for fear that their report would be viewed skeptically and the shares would trade lower. Obviously they didn't and I was able to get in at an attractive price.

    I bring this up as an example of my investing philosophy. Once I identify a favorable trend, I will invest accordingly. I tend to favor more stable long term plays and try to generally avoid short term, trading opportunities. With ESV, the 5-6% dividend makes it a very appealing candidate. You are basically being paid a far above market rate to simply wait for the story to play out. You maybe correct on your timing issue, however the trend is definitely in my favor. I will continue to follow ESV, and comment on them when appropriate.
    Apr 25 01:58 PM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    tc2014,

    Interesting points, let me expand further on my thought process. I view the security as a bond substitute with the potential for capital gains. with that said, I further realize that the security will have far more volatility attached to it than a 10 year bond. You are correct, there is more supply than demand however keep in mind the strategic importance of the commodity. The US has roughly 1 month's worth of oil in the strategic reserve, one of the highest levels ever. I don't see this process reversing anytime soon due to the instability in some of the key production areas (Russia, mid-east etc).

    The need to shift production to safer parts of the world will continue, with offshore drilling in say the GOM becoming very attractive. You are correct, I am currently down as I simply bought at a higher price. I have no problem continuing to hold and reinvesting the dividend. If the shares sell off into the $45 range, I will add to the position further. Thanks for reading and posting a thought provoking comment.
    Apr 25 11:23 AM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    DGJ,

    I suspect PFE upcoming conference call will be quite interesting.
    Apr 25 08:51 AM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    Gentlemen,

    Lets not try to pick bottoms here, instead of focusing on the value currently presented. ESV presents tremendous value at $48, $52 and $60. The trick with any of these entry points is to simply allow the dividend to reinvest and patiently await for the rebound in the offshore drillers fortunes. Once the drillers become more envouge, you will have capital gains as well.
    Apr 25 08:50 AM | 2 Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    maybenot,

    It will come to you.
    Apr 24 09:11 PM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    maybenot,

    The moves by management to depose of these older assets is quite intelligent and in my opinion demonstrates that they are on top of their game. I have no problem continuing to hold and look forward to acquiring further shares in June when my dividend check is reinvested. The value is clearly here.
    Apr 24 06:58 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    DGI,

    I came across the same issue that you are having. I see 40-50 billion on their balance sheet, not sure where Bloomberg got the info from.
    Apr 24 06:56 PM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    ESV shares moved up quite sharply today on the announcement of a sale of one of their older jackup rigs. Management continues to pare older models which should eliminate the fear of over production. By having a newer fleet with the latest technology, you become far more attractive to a potential customer such as BP.

    Ensco plc (ESV) today sold ENSCO 85, a jackup rig built in 1981, for $64 million. The net book value of the rig was approximately $54 million. The pre-tax gain on this sale was approximately $10 million, which will be included in second quarter 2014 operating results.
    Apr 24 06:20 PM | Likes Like |Link to Comment
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