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Matthew Lewis

 
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  • Seadrill: Why This Stock Is Undervalued And Should Be Owned By Every Investor [View article]
    They have 3 ultra deep water rigs being delivered in each of the next 3 quarters. None are contracted out. I have no doubt they will be, but at what day rate? Diamond couldn't even get $500k a day on their new ultra deepwaters. Are SDRL's the same type of rig? I honestly don't know.

    The point remains. There has been pricing pressure recently for day rates on ultra deep water rigs. I don't have a crystal ball, but given the number coming online from competitors into 2015, analysts believe day rates can go even lower.

    A blanket statement like "Diamond has an older fleet so you shouldn't worry about day rates" is frankly just poor analysis. The concern is absolutely on the recent contracts on new deep water rigs.
    Feb 17, 2014. 07:01 PM | 3 Likes Like |Link to Comment
  • Exelon: Selling At 10-Year Lows [View article]
    Solid article with thorough analysis.
    Dec 5, 2013. 06:20 PM | 3 Likes Like |Link to Comment
  • On Apple And Vertical Integration [View article]
    Thanks Ashraf!
    Nov 20, 2013. 09:28 AM | 3 Likes Like |Link to Comment
  • BlackBerry to be acquired by Fairfax-led consortium for $9/share [View news story]
    The $150 million with no deal signed reeks of desperation.

    Market price is $9 exactly. Looks like the market feels there will be no better offer.
    Sep 23, 2013. 02:02 PM | 3 Likes Like |Link to Comment
  • Why MetLife Is A Must Buy In This Market [View article]
    Thanks for the article.

    MET was a great investment at under $30 as recently as last year. However, the stock now trades above book value excluding AOIC and they honestly don't make much more than their cost of capital. I think they are pretty fairly valued here and have sold most my shares in the mid $40's.

    I believe the rising interest rates will not increase earnings significantly. Remember, the company hedges both ways on interest rates, so a lot of the gains they saw from their wise hedges against low interest rates will now turn to losses. Additionally rising interest rates typically mean you start offering more competitive returns to consumers of your products which keeps your margins pretty much in line.

    Just my two cents. Best of luck.
    Jul 17, 2013. 09:35 AM | 3 Likes Like |Link to Comment
  • Has Buffett Got This Wrong? - Why IBM Does Not Appear To Be A Good Fit In The Berkshire Hathaway Portfolio [View article]
    "IBM's high level of debt is also reflected in its high interest coverage ratio."

    Comment doesn't make sense. Interest rate coverage ratio is EBIT/interest expense. A high ratio typically means low debt amounts. Was this calculated correctly?
    Feb 20, 2013. 03:18 PM | 3 Likes Like |Link to Comment
  • 3 High-Yielding Utilities For Rock-Solid Income [View article]
    Management said themselves that the spending cuts will not be enough to support the dividend. They stated during the Q3 call that 2015-2016 electricity prices will have to increase for them to keep from cutting.

    Their older higher priced hedges are falling off and they are replacing with lower priced ones. I've seen no improvement in forward electricity prices since that call. They will certainly cut if you don't see them improve over the next 4-5 months.
    Dec 10, 2012. 06:50 PM | 3 Likes Like |Link to Comment
  • Exelon: Potential Dividend Cut May Be Deeper Than You Expect [View article]
    September 18, 2008 was the day Buffett made his bid. Natural gas prices were below $8 on that day.

    Clearly the market for electricity has changed since 2008 and that should be figured in. However, I don't agree with your assumption that electricity prices will take decades to recover.
    Nov 30, 2012. 07:14 PM | 3 Likes Like |Link to Comment
  • Questions following Apple's (AAPL) FQ3: 1) Is Samsung's Galaxy S III having a big impact on international iPhone sales?  2) How much is the iPhone shortfall the result of iPhone 4 users, who have begun to see their contracts end, viewing the 4S as an incremental upgrade, and (unlike 3GS users) preferring to wait? 3) Do the results further motivate Apple to reach iPhone deals with China Mobile, NTT DoCoMo, and other missing carriers? Nasdaq futures -0.9% overnight. (more) (transcript)  [View news story]
    Revenues up 22% year over year and earnings up 20% yoy...what a disaster. :)
    Jul 25, 2012. 12:18 AM | 3 Likes Like |Link to Comment
  • Desperate to create some hype around the fall launch of a high-end Windows Phone 8 model, Nokia (NOK) is reportedly negotiating with France Telecom (FTE) and other Euro carriers about conducting exclusive launches, and sharing revenues along the way. The talks represent a departure from Nokia's traditional strategy of reaching as many sales points as possible. AT&T's deal to exclusively carry the Lumia 900 in the U.S. hasn't lived up to expectations, in spite of heavy marketing spending.  [View news story]
    Comparing smart phone sales in 2007 to those half a decade later....don't we feel that is an Apples to Oranges comparison?
    Jul 23, 2012. 02:59 PM | 3 Likes Like |Link to Comment
  • Nokia (NOK) slashes the price of its flagship Lumia 900 phone by half in the U.S., barely a quarter after its introduction - though it's not clear whether Nokia or partner AT&T (T) will take the bigger hit. Quick price drops aren't unprecedented, but NOK (with market cap now down more than 95% from its tech-boom peak) is under scrutiny after a lackluster Lumia rollout.  [View news story]
    Apple does not drop prices 1 quarter into a product launch.
    Jul 15, 2012. 07:03 PM | 3 Likes Like |Link to Comment
  • How JPMorgan Just Lost A Huge Source Of Profits, Now A Terrible Investment [View article]
    Interesting article...but I'm not sure I understand the conclusion.

    "First of all, these institutions are starved for revenue growth and are willing to take exceptional risks to achieve it. Second, they may now be forced to scale down risk-taking in response to JPMorgan's regulatory spotlight, further harming bottom lines."

    These two points directly contradict each other. Are they going to be able to take on more risk or not? Your article seems to indicate you detest the types of risk JPM and others take as being bad for shareholders, yet you state a forced decrease in risk taking will "hurt the bottom line".
    Jul 14, 2012. 07:16 PM | 3 Likes Like |Link to Comment
  • Corning: A Cheap Stock That Is Likely To Get Cheaper [View article]
    You only risk going insolvent if you borrow money. Smart investors don't.
    Jul 12, 2012. 10:04 PM | 3 Likes Like |Link to Comment
  • How To Buy Cheap Natural Gas Assets With A High Dividend Yield [View article]
    The dividend yields for HGT and SJT you cite in your article are preposterous based on the current prices on natural gas. Can I ask at how you calculated them? These are royalty trusts. They sell the gas they produce every month, subtract out expenses, and distribute the rest to unit holders. There is a two month lag in distribution vs sales, so the distribution announced Friday is actually for gas sales in November (when prices were above $4). Based off the current price of natural gas my current modeling shows monthly distributions of $.03 - $.04 for SJT, or a dividend yield of 2.1%.
    Jan 24, 2012. 10:01 AM | 3 Likes Like |Link to Comment
  • Total: Why I Am Still Bullish On This 5% Yielder [View article]
    Yes...a strong dollar may ding your dividend a bit, but it also helps strengthen the company. Most of Total's expenditures are in euros, and most of their revenue is in dollars. A strong dollar means less $ converted to euros to pay for stuff.
    Jan 17, 2012. 01:37 AM | 3 Likes Like |Link to Comment
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