Potash Corp., Mosaic, And Agrium Each Get A Share Of Indian Potash Demand [View article]
As of 2/11/2013, the PEs for POT, MOS, and AGU are 17.8, 14.2, and 12.4, respectively. However, if one looks at the operating margins, they are 38%, 23%, and 13% respectively. If the margins stay where they are, POT’s PE should almost always be higher than that of MOS or AGU as it is a more profitable company.
POT’s five year average PE is 18.6, whereas Yahoo Finance gives it a forward PE of 12.5. If one takes those numbers, POT does not look overpriced.
For Talisman Energy, Things Might Get Worse Before They Get Better [View article]
yukon1111 and herbert: thanks for your comments. I have in my spreadsheet the current price down from the 52 week high 96% (22.6-11.2)/(22.6-10.8). This is my own way of looking at the current price level compared to the 52 week high and low. Now, I see how this can confuse. Thanks for pointing it out.
Chesapeake Energy: Buy Into The Weakness Post-Earnings [View article]
Yes, CHK's books value is greater than its market value, but not by much. At $19.6 per share, the P/B ratio is 0.92. It's a discount indeed, but a bargain? I don't know. Plus, the debt to equity ratio is 0.6, not really an indication of a strong balance sheet to me. What's more, the current ratio is 0.45. The company obviously will have some near term cash flow problems. Maybe, this is why CHK is selling some of its assets. But, the more assets it sells, the less earning power it will have in the future.
I agree that all the troubles of the natural gas industry in general and CHK in particular suggest a possible buying opportunity. My take is that, unless the natural gas price rebounds quickly, CHK will have some tough time ahead at least in the next one or two quarters. It might be too early to get in now...
Thank you for the article. I wonder how the 3yr EPS growth rate is defined, and how much BP's better than average number is a result of its set aside charges relating to the gulf oil spill, as opposed to normal growth? Also, while BP has set side $37b for potential legal liabilities, it has only about $14b cash on its book. In the worst case scenario, isn't there a risk that the company will need to issue new debts or shares in order to raise cash? Any analysis on these issues will be appreciated.
Why Overvalued Intel Will Correct In 2012 [View article]
I actually found myself in agreement with the author in general. No doubt that Intel is a great company, boasts a strong balance sheet, has posted impressive earnings consecutively for several quarters, and has a history of steadily increased dividends. However, in the last year, its stock was traded in the range approximately between 20 and 25 in a cyclical manner. Despite all the strength of the company, I'd not fight the perceived market valuation of the stock.
I'm not sure that the global economic outlook in general, and the growth prospect of the semiconductor industry in particular would propel the stock beyond it's resistance level. Would love to pick up some shares if it drops to the 20-21 range, but probably not for the current price.
Statoil: A Cheap, Stable, Dividend-Paying Bet On Unconventional Oil And Gas [View article]
Appreciate and agree with your analysis. One note of caution perhaps is that despite all the good fundamentals, STO didn't seem to respond to the oil price as positively as say CVX. In the past 5 years when the oil index has risen about 10%, STO came out flat, whereas CVX saw a 60% gain. Will the “intrinsic” value of STO be better appreciated by the inventors? I’d certainly hope so.
Just One Stock: Buying Oil Reserves In the Ground, On the Cheap [View article]
Thank you for this well written article. The low liquidity of the stock and the uncertainty of a sale at a good price would probably hold me back... Yet, appreciate your upside analysis. Please keep up the good work.
Expecting a Profit Chain Reaction From Nuclear Energy [View article]
Besides the US, other countries are showing serious interests in nuclear energy. China, for one, has 20 reactors currentlly under consturction. Investment opportunities on the horizon?
Potash Corp., Mosaic, And Agrium Each Get A Share Of Indian Potash Demand [View article]
POT’s five year average PE is 18.6, whereas Yahoo Finance gives it a forward PE of 12.5. If one takes those numbers, POT does not look overpriced.
For Talisman Energy, Things Might Get Worse Before They Get Better [View article]
For Talisman Energy, Things Might Get Worse Before They Get Better [View article]
Talisman Energy: Much More Than A Natural Gas Company [View article]
Chesapeake Energy: Buy Into The Weakness Post-Earnings [View article]
I agree that all the troubles of the natural gas industry in general and CHK in particular suggest a possible buying opportunity. My take is that, unless the natural gas price rebounds quickly, CHK will have some tough time ahead at least in the next one or two quarters. It might be too early to get in now...
BP: Why It's Headed To $60 [View article]
Why Overvalued Intel Will Correct In 2012 [View article]
I'm not sure that the global economic outlook in general, and the growth prospect of the semiconductor industry in particular would propel the stock beyond it's resistance level. Would love to pick up some shares if it drops to the 20-21 range, but probably not for the current price.
Statoil: A Cheap, Stable, Dividend-Paying Bet On Unconventional Oil And Gas [View article]
Long STO.
.
Just One Stock: Buying Oil Reserves In the Ground, On the Cheap [View article]
Expecting a Profit Chain Reaction From Nuclear Energy [View article]