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  • Transocean's Value Proposition, Part Two: Profit Soars, Macondo Settlement On The Horizon [View article]
    So why not go for ESV instead? You're long both, but many will choose one or the other. Ensco has a $1.5 dividend (2.7 percent yield), Price-to-Book virtually identical to RIG, and a recent addition to the S&P500.

    SDRL has taken advantage of historically low interest rates to expand their fleet from 23 to 48 rigs (12 co-owned), with 18 additional rigs under construction. I just don't like SDRL's Debt-to-Equity of 1.75! (ESV 0.43, RIG 0.82), and it's a Fredriksen-controlled firm (Frontline).
    Aug 6 06:33 AM | 1 Like Like |Link to Comment
  • Telefonica's (TEF) online division aims to generate €5B of revenues a year by 2015 with annual growth of 20%. Telefonica Digital today unveiled several goals and initiatives, including launching direct-to-bill payments for apps and other services in 14 countries by the end of 2012.  [View news story]
    It concerns a joint partnership between Telefonica's digital unit and Abu Dhabi-based Etisalat that will expand Telefonica Digital's market by 17 countries and 170 million customers.

    "The two firms will work together in a number of areas, including machine-to-machine (M2M), financial services, cloud computing and mobile advertising" (PR)

    "revenues at its digital division to grow at an annual rate of 20 percent and that the unit will raise around 5 billion euros ($6.26 billion) for the company by 2015." (PR)
    Jul 5 10:47 AM | Likes Like |Link to Comment
  • Here's What's Going On With Telefonica Right Now, And No, It's Not All Bad [View article]
    There is a difference between what’s in the broker’s best interest (or simply easiest), and what’s in the best interest of their clients.

    And the problem is securities brokers are still largely self-regulated by that splendid industry organization called FINRA.
    Jul 5 10:36 AM | Likes Like |Link to Comment
  • Is It Time For Dividend Growth Investors To Be Buying Cyclicals? [View article]
    "Is It Time For Dividend Growth Investors To Be Buying Cyclicals?"

    Yes. Mining and Steel.

    Main reason: Valuation (and sometimes yield):

    - Nucor Corp. (http://bit.ly/At28Ho) 3,75%
    - Freeport-McMoRan Copper & Gold (http://bit.ly/quothf) 3,55%
    - ArcelorMittal (http://bit.ly/n60VSL) 3,97%
    - Caterpillar Inc (http://bit.ly/w2jJLD) 2,41%
    - Newmont Mining Corporation (http://bit.ly/zV2fzB) 2,82%
    - Kinross Gold Corporation (http://bit.ly/zKrahs) 1,81%
    - United States Steel Corporation (http://bit.ly/yuZxv7) 0,92%

    "financials like JP Morgan (JPM) and Citi (C)"

    Hmm, better not!
    Jul 5 10:17 AM | Likes Like |Link to Comment
  • Barclays (BCS) chairman Marcus Agius resigns in the wake of the bank's Libor scandal, saying "the buck stops with me" for the "unacceptable standards of behaviour within the bank." (previously)  [View news story]
    Barclays Manipulates Libor While Auditor PwC Snoozes: http://onforb.es/QUqLQQ
    Jul 2 09:28 AM | Likes Like |Link to Comment
  • Japan reports holding a net $3.19T in foreign assets at the end of 2011, hanging on to its position as the world's top creditor nation. The position marks a rise from 2010, which may also dampen expectations on China overtaking the Japanese as the number one creditor anytime soon.  [View news story]
    Japan's government debt is owned by its citizens. In comparison, much of the U.S. government's debt is owned by foreigners. If Japan taxes its citizens to pay for its debt, then it goes back to its citizens. So, it is a self-contained loop. In the U.S., we need China and others to fund our budget deficit. So, our interest payments go out of the country.

    Although there are significant issues in Japan with its government debt, the liability is not national, since it is owned internally. U.S. government debt, by contrast, is a national liability. Japan's economy has been stuck in neutral for 22 years. The Nikkei stock index peaked in 1989 at 38,915. Today, the Nikkei is 8,729.29. So, Japan has already endured a muddle-though economy with frequent recessions, which is one of the outcomes I predicted for the U.S.

    Japan has two possible options. The first is to go through an extreme contraction of government spending, which its citizens are more likely to bear than the citizens of any other country. The second option is to print the money and devalue the Japanese yen. One U.S. dollar was equal to 125 yen just five years ago; today it is 79.55 yen. The yen is nearly at all-time record strength and can afford some devaluation. Devaluation would also make Japanese exports more competitive, something the Japanese love.
    May 22 04:28 AM | Likes Like |Link to Comment
  • Ecopetrol And Petrobras: Barometers Of Colombia And Brazil's Economic Policies [View article]
    PBR's plight seems temporary, value destruction (for shareholders) depends on where you bought in the first place. It's certainly cheap now. One big plus, they have the reserves. I'll look into EC, good write up.
    May 22 03:29 AM | 1 Like Like |Link to Comment
  • Why Oil Will Soon Start To Rally [View article]
    Exactly Bob, downside remains limited to $85-$90. Day rates for offshore drilling rigs keep rising, implied total oil demand keeps growing. Demand growth is likely to rise faster in China during the second half of 2012 with easing inflationary pressure and government credit policy becoming less tight.
    May 22 03:19 AM | 3 Likes Like |Link to Comment
  • Bargain Hunt: 6 Western Energy Majors For Stability, Value And Solid Dividends [View article]
    I hold COP and PSX. Phillips 66 is outperform with a $38 price target @ Howard Weil, outperform and a $42 price target @ Credit Suisse, buy with a $44 price target @ SIG.

    Phillips 66 (PSX) = refining, transportation, chemicals, marketing and midstream assets. ConocoPhillips E&P (COP) will now focus on exploration and production of oil and gas. Greater overall dividend after split and additional value by separating the assets and the different businesses. Good piece.
    May 22 03:07 AM | Likes Like |Link to Comment
  • 'Glenstrata' - Bigger Is Better [View article]
    As part of the agreement, Richardson is buying about $900 million of Viterra assets; grain handling, crop input, processing facilities, related working capital, which Glencore International plans to sell following the acquisition. After this deal Richardson and Viterra will be similar size grain-handling companies.
    Mar 22 09:13 AM | 1 Like Like |Link to Comment
  • 'Glenstrata' - Bigger Is Better [View article]
    HF's and FoF's are absolutely eyeing up this deal, practically licking their lips at the prospect of a tie-up. These are big, established companies, it's liquid, it makes it easier to play it in larger size than you would before. Funds love complex, all-share deals where research and combing through legal documents can give them an advantage. Not for the average investor
    Mar 15 01:04 PM | 2 Likes Like |Link to Comment
  • Exxon Mobil (XOM): Q4 EPS of $1.97 in-line. Revenue of $121.6B (+15.6% Y/Y) beats by $2B. Shares -0.7%. (PR)  [View news story]
    Attaboy! XOM remains top dog
    Jan 31 11:41 AM | Likes Like |Link to Comment
  • Transocean's Value Proposition: Leading Driller Stays Afloat By Going Deepwater [View article]
    The only one touting (or rather pouting) seems to be you. Article seems as balanced and thorough as they come, except for not including DO maybe.

    Now I'm curious, so enlighten us with your investment advice. You said earlier that long_on_oil basically didn't know what he was talking about and that RIG would hit $33 (ain't gonna happen!), but neither you or your clients were short? So what are some of your actual top recommendations
    Jan 31 11:26 AM | 3 Likes Like |Link to Comment
  • Facebook IPO: A Valuation Comparison To Other Social Media Stocks [View article]
    If it were up to Zuckerberg, Facebook would remain private. He's going ahead on the IPO because he basically has to. Zuckerberg knows that once the company has more than 500 shareholders he would have to publicly disclose the company's finances. April 2012 is the deadline and this IPO has simply become inevitable.

    Hopefully the IPO won't ruin innovation in exchange for doing what will please shareholders. Facebook does one thing better than all other Social Media, it better motivates users to act on Facebook. That will remain key after its IPO. Management will have to maintain control over the decisions it makes, without outside influence.
    Jan 31 03:58 AM | 1 Like Like |Link to Comment
  • Will Latin America Navigate The Global Headwinds? [View article]
    Throughout history natural resource wealth in Latin America has been critical for its economies. Over the past couple of years, the annual growth in the income of the bottom 30% of the population has exceeded 9%, while the top 30% has grown at around half that rate. There is a good bit of the growth in consumption, which will continue because of rapid growth in consumer borrowing.
    Jan 31 03:21 AM | Likes Like |Link to Comment
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