More on Exxon Mobil's (XOM) Q1 results: E&P earnings declined 9.8% to $7.04B as total oil and natural gas production fell 3.5% Y/Y to 4.395M boe/day. Refining and marketing earnings fell 2.6% to $1.55B while refining-driven margins increased earnings by $780M. Chemical profits rose 62%; corporate and financing expenses fell sharply due to "favorable tax impacts." Shares -0.5% premarket. [View news story]
Press has been speculating that IOC has a big deal coming up with XOM; has XOM mentioned it anywhere?
Turning 10 this week, the Guggenheim S&P 500 Equal Weight ETF (RSP) has outperformed the SPY by 5,900 basis points since its launch. The RSP was one of the pioneers of equal-weighting - created in the aftermath of the 2000 bust to give investors exposure to stocks without so high a focus on large caps (the so-called "Cisco effect"). It's time for a renaming to the "Apple effect" as QQQE - the Nasdaq 100 Equal Weighted ETF - has outperformed the QQQ by 850 bps YTD. [View news story]
RSP is a terrific alternative to the SPY. More here:
MetroPCS (PCS -1.1%) shareholders approve the company's merger with T-Mobile USA (DTEGY.PK). The approval was widely expected after the most high-profile opponents of Deutsche Telekom's initial offer terms - major shareholders Paulson & Co. and Schoenfeld Asset Management, and advisory firm ISS - all gave a thumbs-up to Deutsche's revised offer. Now comes the hard part: getting two low-end carriers who have been steadily losing share to Verizon/AT&T to reverse their fortunes as a joint entity. Quite a lot hinges on how T-Mobile's new subsidy-free plans are received. [View news story]
T-Mobile's Bad Side: Too Much Debt And Too Little Equity For PCS [View article]
Thanks for the kind words. It was a shockingly bad decision for PCS to change their ad campaign (incidentally on the same day that this article came out). Almost worth a second activist campaign to reinstate the previous campaign. More on the change here:
Barclays likes Hess' (HES +1.9%) moves to become a pure E&P play, upgrading the stock to Overweight and seeing an attractive entry point after the recent pullback. HES will continue to outperform other energy stocks and the broader market if restructuring efforts are successful, the firm says; if not, Elliott likely will launch a new proxy fight for 2014 which would lead to more action to help unlock value. [View news story]
Elliott has been hugely helpful here, to the benefit of all HES holders.
"Does Steve Ballmer have another reason to watch his back?," tweets Paul R. LaMonica in response to a report activist fund ValueAct has taken a $2B stake in Microsoft (MSFT +3.4%). He isn't alone in thinking ValueAct, which invests in companies it thinks are "fundamentally undervalued" and could benefit from a change in direction, might push for the removal of Microsoft's much-criticized CEO, who reportedly doesn't want to leave until the 2017-2018 timeframe. But the fact Ballmer still seems to be supported by Bill Gates could make it tough to oust him. There's also speculation ValueAct could join calls to break up Microsoft. [View news story]
Listening to compelling ValueAct presentation on MSFT now.
Gilford Securities' Bernard Sosnick thinks shares of J.C. Penney (JCP +0.7%) can see $25 again as he chimes in with a surprising upgrade on the retailer to a Buy rating from Neutral. The analyst isn't scared off like most by the prospect of equity dilution of as much as 10% to insure survivability. What to watch: To gain any sales momentum at all, it's critical that JCP can see some success selling Martha Stewart goods without using her brand name on the products or in marketing - a rather a tall order by the accounts of most retail watchers. [View news story]
So much negative press, so much uncertainty, such Pavlovian dread.
GCVRZ: A Potential 16 Bagger Worth The Risk [View article]
Dude, You're Not Getting DELL...Or AUTO [View article]
MPG Office Trust (MPG) will be acquired for $3.15 per share in cash by a fund controlled by Brookfield Office Properties (BPO). MPG shares +22.31% premarket. [View news story]
MPG Office Trust (MPG) will be acquired for $3.15 per share in cash by a fund controlled by Brookfield Office Properties (BPO). MPG shares +22.31% premarket. [View news story]
More on Exxon Mobil's (XOM) Q1 results: E&P earnings declined 9.8% to $7.04B as total oil and natural gas production fell 3.5% Y/Y to 4.395M boe/day. Refining and marketing earnings fell 2.6% to $1.55B while refining-driven margins increased earnings by $780M. Chemical profits rose 62%; corporate and financing expenses fell sharply due to "favorable tax impacts." Shares -0.5% premarket. [View news story]
Whiting USA Shareholders Are Going To Lose Half Their Money - Again [View article]
Turning 10 this week, the Guggenheim S&P 500 Equal Weight ETF (RSP) has outperformed the SPY by 5,900 basis points since its launch. The RSP was one of the pioneers of equal-weighting - created in the aftermath of the 2000 bust to give investors exposure to stocks without so high a focus on large caps (the so-called "Cisco effect"). It's time for a renaming to the "Apple effect" as QQQE - the Nasdaq 100 Equal Weighted ETF - has outperformed the QQQ by 850 bps YTD. [View news story]
http://seekingalpha.co...
MetroPCS (PCS -1.1%) shareholders approve the company's merger with T-Mobile USA (DTEGY.PK). The approval was widely expected after the most high-profile opponents of Deutsche Telekom's initial offer terms - major shareholders Paulson & Co. and Schoenfeld Asset Management, and advisory firm ISS - all gave a thumbs-up to Deutsche's revised offer. Now comes the hard part: getting two low-end carriers who have been steadily losing share to Verizon/AT&T to reverse their fortunes as a joint entity. Quite a lot hinges on how T-Mobile's new subsidy-free plans are received. [View news story]
T-Mobile's Bad Side: Too Much Debt And Too Little Equity For PCS [View article]
T-Mobile Is Starting To Look Good For MetroPCS [View article]
T-Mobile's Bad Side: Too Much Debt And Too Little Equity For PCS [View article]
http://read.bi/15JQN3k
Wine Arbitrage [View instapost]
Barclays likes Hess' (HES +1.9%) moves to become a pure E&P play, upgrading the stock to Overweight and seeing an attractive entry point after the recent pullback. HES will continue to outperform other energy stocks and the broader market if restructuring efforts are successful, the firm says; if not, Elliott likely will launch a new proxy fight for 2014 which would lead to more action to help unlock value. [View news story]
"Does Steve Ballmer have another reason to watch his back?," tweets Paul R. LaMonica in response to a report activist fund ValueAct has taken a $2B stake in Microsoft (MSFT +3.4%). He isn't alone in thinking ValueAct, which invests in companies it thinks are "fundamentally undervalued" and could benefit from a change in direction, might push for the removal of Microsoft's much-criticized CEO, who reportedly doesn't want to leave until the 2017-2018 timeframe. But the fact Ballmer still seems to be supported by Bill Gates could make it tough to oust him. There's also speculation ValueAct could join calls to break up Microsoft. [View news story]
Gilford Securities' Bernard Sosnick thinks shares of J.C. Penney (JCP +0.7%) can see $25 again as he chimes in with a surprising upgrade on the retailer to a Buy rating from Neutral. The analyst isn't scared off like most by the prospect of equity dilution of as much as 10% to insure survivability. What to watch: To gain any sales momentum at all, it's critical that JCP can see some success selling Martha Stewart goods without using her brand name on the products or in marketing - a rather a tall order by the accounts of most retail watchers. [View news story]