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Matthew Smith  

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  • Commodities Today: Warren Buffett Sells Energy Stocks, Rare Earth Stock Rises [View article]
    Well Warren Buffett is one of the biggest beneficiaries of lower energy prices. People can buy more products that BRK or companies it owns significant stakes in make. Plus lower fuel costs help the railroad, even if shipping volume growth slows. He bets on the US economy and lower oil prices would be good for the overall economy. So he might not be buying just yet jerrydd.
    Mar 20, 2015. 09:18 AM | Likes Like |Link to Comment
  • Today's Market: Buffett's Latest Buy, Healthcare Settlement And Earnings Disappointments [View article]
    Funny how things work right? We had to put up with less than stellar returns last year as the IWM was batted around, but thus far in 2015 it is looking good.
    Mar 20, 2015. 09:15 AM | Likes Like |Link to Comment
  • Commodities Today: Bakken Producer To Sell Assets, Refinery Strike To End [View article]
    Thanks for the kind words and I hope you enjoy the other articles.
    Mar 20, 2015. 09:13 AM | Likes Like |Link to Comment
  • Commodities Today: Bakken Producer To Sell Assets, Refinery Strike To End [View article]
    I understand what you are saying, but differentials are crazy right now and have been in certain parts of the country for some time. Refining capacity should have been added long ago, but has lagged. I'd be perfectly fine with the oil export ban if we required the refiners to use US production first, but we do not. The incentive is there but most are set up for refining sour crude.
    Mar 20, 2015. 09:12 AM | 1 Like Like |Link to Comment
  • Commodities Today: Bakken Producer To Sell Assets, Refinery Strike To End [View article]
    I'm for keeping it here so long as there is a use! If there is no use and refiners won't use it to refine with, then we need to sell it to overseas markets. It's very desirable light, sweet crude for crying out loud!
    Mar 20, 2015. 09:07 AM | 1 Like Like |Link to Comment
  • Commodities Today: Another Oil Company Files For Bankruptcy, More Companies To Follow [View article]
    I think that the hedge funds and private equity guys have minimized their risk here and as a general rule make sure that one bad investment cannot sink the ship. With that said, you might want to watch what some of these guys are saying right now...off of the top of my head I believe I remember seeing an interview with one partner saying that they would be slashing CapEx, headcount, cutting rig numbers and slowing well completions as they looked to weather the storm.

    It seems that many of the banks who were previously lending to the small E&Ps have either stopped lending or severely tightened lending standards. Basically it appears that certain financing avenues are closed.
    Mar 20, 2015. 09:04 AM | Likes Like |Link to Comment
  • Commodities Today: Another Oil Company Files For Bankruptcy, More Companies To Follow [View article]
    See above comment, depending on when you start counting I have at least 3 for this year, more if you begin looking back to 2014.
    Mar 20, 2015. 08:58 AM | Likes Like |Link to Comment
  • Commodities Today: Another Oil Company Files For Bankruptcy, More Companies To Follow [View article]
    KWK may not be typical but it certainly is not the exception or outlier within the industry either. My article here (http://seekingalpha.co...) talks about two publicly traded ones which collapsed and this (http://reut.rs/1BWxX71) reuters list goes back a year and is pretty detailed (although it is broad) in the descriptions of the companies. Does this help?
    Mar 20, 2015. 08:56 AM | Likes Like |Link to Comment
  • Commodities Today: Energy And Frac Sand Names Get Crushed, Solar Stocks Rising Again [View article]
    Energy is energy. So long as they compete and fossil fuels such as natural gas are sooo cheap, the solar stocks are going to be impacted. When prices rise, then solar becomes a heck of a lot more attractive and that is what propels them higher. I think we have reached the time when coal is no longer a major competitor moving forward, and investors would do better to focus on natural gas instead. The trend is towards cleaner energy and with cheap natural gas in the US and coal not really being considered for the next generation of generators in the US or Europe it seems that solar's fate is in many ways tied to natural gas's. Hope that helps!
    Mar 20, 2015. 08:41 AM | 1 Like Like |Link to Comment
  • Commodities Today: Energy Names Head Lower Even As D.C. Talks About Lifting Oil Export Ban [View article]
    Missed your comment earlier 99profit-seeker99 but I wanted to tell you that I think you are spot on regarding numerous issues. You actually took some of my ideas from today's article! Grrrrr...
    Mar 20, 2015. 08:28 AM | Likes Like |Link to Comment
  • Commodities Today: Energy Names Head Lower Even As D.C. Talks About Lifting Oil Export Ban [View article]
    Lifting the export ban and allowing our artificially cheap oil to flow to the international markets would actually benefit the US gasoline consumer. Gasoline is priced based off of Brent Crude prices, not WTI, so allowing WTI to hit the international markets, where prices are $10/barrel higher would lower gasoline prices. How much? Depending on how the markets worked their way towards equilibrium, it could possibly be another 10%.
    Mar 20, 2015. 08:26 AM | 2 Likes Like |Link to Comment
  • Today's Market: Big Changes For The Dow, Buyout Rumors Impacting These Stocks [View article]
    In my opinion Walgreens' next acquisition will not be Rite-Aid. There are reasons why that would be attractive, including Walgreens being able to consolidate stores and refinance debt, but I think that there are providers of services that Walgreens could buy and roll-out to their stores which would be better for their business. In my opinion they could create a lot more value for shareholders by undertaking an acquisition that would provide organic growth via roll-out rather than losing focus by trying to take over (and eventually having to sell off stores) Rite-Aid.
    Mar 20, 2015. 08:16 AM | Likes Like |Link to Comment
  • Commodities Today: Oil Falls But Majors Rally, U.S. Government Mulling Buying Oil [View article]
    In my opinion it is the rate at which the storage is filling, especially at key storage facilities such as Cushing. The last numbers I have show Cushing capacity usage at just over 64%...but the 51 million + barrels in storage grew by roughly 25% over the previous month or so. It was not that long ago that Cushing was only at 25% capacity.

    So while part of the problem is the production increases we are still seeing as wells from months ago come online, the issue lately is with the refiners. Once they are all back up and running we should see what the true builds are going to be.

    Hope that answers your question.
    Mar 17, 2015. 12:51 PM | Likes Like |Link to Comment
  • Commodities Today: Oil Falls But Majors Rally, U.S. Government Mulling Buying Oil [View article]
    You have a point, but I was looking at it from a storage point of view. That could be the surplus from a week or two that goes into storage, which could buy some time. It is merely a drop in the bucket but could show that the government is at least AWARE that there are issues in the energy market right now.
    Mar 17, 2015. 12:37 PM | 2 Likes Like |Link to Comment
  • Commodities Today: Oil Falls But Majors Rally, U.S. Government Mulling Buying Oil [View article]
    tankers = floating storage
    Mar 17, 2015. 12:34 PM | Likes Like |Link to Comment
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