How Safe Are Silver Wheaton's Silver Streams? [View article]
Thanks for the article, actually eased into an initial SLW position yesterday after the recent big drops in gold and silver.
Sensible management team, a decent Q1 given the big drop in share price, hovering around the 52w low. Also liked how they amended their dividend policy on May 10, 2013. Interesting to see if we get a nice retracement within the next 6-12 months.
The headline should say 'Aegon Delivers Disappointing! Q1 2013 Results'.. Q1 2012: 525 million.. AGN.AMS -4,7%
Net income decreased to EUR 204 million as higher underlying earnings, realized gains on investments and lower impairments were more than offset by losses from fair value items.
Fair value items The results from fair value items amounted to a loss of EUR 286 million. The loss was mainly due to macro equity hedging programs in the Americas which were unfavorably impacted by strong increases in equity markets during the first quarter.
The Next Exxon Mobil? Rosneft, The Biggest Oil Company You've Never Heard Of [View article]
Rosneft BOD Recommends 2012 Dividend at 8.05 rubles per share, which constitutes 25% of its IFRS net profit, 7% YoY increase compared to 2011 (7.53 rubles).
The Board of Directors also resolved to convene an extraordinary general meeting of Rosneft shareholders and hold it by absentee vote (persons eligible to vote cast their votes on agenda items by voting ballots) on June 18, 2013. The EGM will consider only one agenda item: the approval of related interested-party transactions as part of the joint projects implementation with ExxonMobil (XOM) for exploration and development of hydrocarbons in the offshore areas of the Black and Kara seas. May 6, 2013 (close of business) is set as a record date for the EGM.
Royal Imtech: Short Covering After Negative Analyst Report Proves Unfounded [View article]
When I initially wrote this article, 2-3 weeks after Imtech had given a very firm and detailed rebuttal to ABN's analyst report, the credibility of both Imtech's management board and their auditor KPMG was still very different. As you may know their reputation has always been very strong, also given their operational results and expansion during previous years.
Once the AWW issue arose they stated very firmly that the problems in Poland were isolated. The initial estimate was about €100 million, which ended up at €150 million. Then the Germany hit as well, first €150 million, later €70 million extra, €220 million total for Germany. €370 million writedown 'unforeseen' by management and KPMG when the article was written in December.
Then you also have €55 million restructuring costs for Q4 2012 (1000 people) and now again €80 million extra for laying off an additional 1300 people. The new CEO states he 'hopes' all the problems are behind Imtech now, but it will take more time to complete the 2012 audit.
There you have it in a nutshell why Imtech's share price is now hovering at €8,5. It was planned (but still fortunate) selling at €20, but otherwise I would have had exposure to AWW as well, and I don't like it that management thought everything was perfectly fine between buying in December and selling in January after the back and forth with ABN in November on Germany. You need to know what is happening in your company otherwise investing comes down to luck instead of facts.
As also mentioned in a previous post I was back in the stock at €8,35 as of February 18, but out again recently because of the stoploss at cost. I’m now going to wait a while, given the latest events. I want to see the pricing of the rights issue first and see if Imtech’s price holds the €8... which I doubt at the moment
$90 Billion Glencore-Xstrata Powerhouse To Go Ahead After Increased Offer [View article]
China approves Glencore and Xstrata deal
The Chinese government has removed the last remaining barrier to the $76bn merger of Glencore and Xstrata after the trading house agreed to sell one of the combined group’s largest mining projects.
The long-awaited approval from Beijing clears the last major hurdle in a 15-month saga to create one of the world’s largest companies in the natural resources industry, combining production and trading under the same umbrella. Glencore expects to close the deal on May 2.
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
Thanks Chuck, I do admit to the same strategy for most of my portfolio, being a great fan of Graham, Buffett, Munger, yourself, F.A.S.T, and the benefits of value investing in solid dividend stocks, but I find myself continuously evaluating past mistakes and trying to maximize overall return if I consider the risk/reward to be favorable enough.
The first time I ventured into both INTC and CSCO years ago I bought too high, even though fundamentals were still fine (undervalued). Given the importance of entry point I started to utilize technical indicators more and option strategies more as time went on. I can't speak for all my holdings, but I consider the best holding period for my core equity holdings to be almost forever.
Although many dividend and income investors argue the same you find the average holding period actually going down and people selling low after buying too high because they emotionally have difficulty dealing with market corrections. Emotional investing is still the biggest pitfall for many retail investors.
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
While I owned both INTC, CSCO on several occasions in the past I've found them most interesting in terms of buying in the lower end of pretty predictable trading ranges and selling them after a 15-20% run-up, enjoying their dividends in the meantime. There are so many macroeconomic, monetary and political issues at present that it seems prudent to take some money off the table after quick run-ups in the market and/or individual stocks.
The problem with debating undervaluation of stocks is that we've been having this debate for 3 - 4 years now with these three. Mr Market is hardly rational, so we may be debating for a few more years before we see fair value.
INTC is again looking good at present in terms of relative price, dividend yield, and the steps they are taking to compete with ARMH in mobile computing. They fact is they were too late to the smartphone and tablet party, but nothing that cannot be rectified with time.
With regards to CSCO and MSFT at present, I would probably go for GE and AAPL instead.
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
Many variables like quality of assets, when were you able to contract (or are you able to re-contract), terms of contract..
What it always comes down to is the bottom-line, so you should also compare the two (ESV vs SDRL):
•Revenue resulting in actual net profit? •Which dividend level is sustainable? •Company flexibility if things don't go quite as smoothly as anticipated?
All valid questions, as you can focus your attention on the rewards without sufficient consideration for the associated risks. Debt to equity is one..
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
Seadrill is smaller. You're probably comparing day rates of $500.000 or higher, which Ensco also commands for their drillships and semisubmersibles, against Ensco's average rate on their larger fleet, which also includes 46 premium jackups which have lower rates than drillships and semisubmersibles.
Ensco quick facts:
World’s second largest offshore driller (after Transocean)
• 9 drillships (includes 3 under construction) • 13 dynamically-positioned semisubmersibles • 6 moored semisubmersibles • 46 premium jackups (includes 3 under construction) • 3 deepwater managed units
Newest ultra-deepwater fleet
• Average age: 3 years • 3 more under construction
Industry-leading jackup fleet
• Largest fleet of active premium jackup rigs • More 400’ water depth jackups than any other driller • $1 billion+ invested in jackup fleet since 2005 • 3 ultra-premium harsh environment jackups under construction
Geographic reach
• Operations span six continents • Drilling experience in virtually every major offshore basin • Headquarters in London; major offices in Angola, Brazil, Mexico, Scotland, Singapore, UAE and United States
Strong financial position and investment-grade credit ratings:
•$11 billion of contracted revenue backlog excluding bonus opportunities •Long-term debt-to-capital ratio of 29% •$1.9 billion of available revolving credit facilities •$487 million of cash and cash equivalents
EVP and Chief Financial Officer Jay Swent commented, “Capital expenditures for full-year 2012 totaled $1.8 billion of which $1.3 billion, or 72%, was invested in new construction. These investments, coupled with $1.9 billion of remaining contractual commitments for rigs being constructed through 2014, will propel the future growth of our company. We also continued to high-grade our fleet by selling two additional rigs in the fourth quarter.”
Mr. Swent added, “We exceeded our 2012 expense synergy target of $100 million related to the (Pride) acquisition and we remain on track to deliver additional synergies in 2013. During 2012, we also restructured subsidiaries from our acquisition to achieve enhanced tax efficiencies and improve capital management flexibility. For full-year 2013, we expect our effective tax rate to be approximately 12%.”
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
"Seadrill, Transocean And Ensco: Which Is The Best Bet For Now?"
Ensco is current the best managed and safest option IMHO, and the expected increases in both EPS and dividend yield already seen this year and for the coming years may result in further funds moving over from SDRL to ESV given the more favorable risk/reward proposition.
Transocean has made great strides, especially the last 18 months, but the initial retracement from the low 40's to the high 50's has meant many (incl myself) will have locked in profits above $56. The current trail on Macondo will probably have people staying on the sidelines or not substantially increasing position in either BP or RIG until we get a bit more clarity on the outcome.
Royal Imtech: Short Covering After Negative Analyst Report Proves Unfounded [View article]
Er is nog steeds een redelijke short positie in IM, al is de koers redelijk hersteld van de eerdere lows. Het technische beeld blijven volgen, entry sowieso afdekken met een stop-loss, en het rustig aankijken. SBM Offshore is ook zo'n verhaal, wat een verschil tussen eind november en nu. Dat zijn de mooiste plays.
5 Top China Dividend Stocks [View article]
http://bit.ly/14sqwUk
http://bit.ly/YWljD4
http://bit.ly/14sqwUm
Renminbi Keeps Going, Chinese Companies Keep Coming [View article]
How Safe Are Silver Wheaton's Silver Streams? [View article]
Sensible management team, a decent Q1 given the big drop in share price, hovering around the 52w low. Also liked how they amended their dividend policy on May 10, 2013. Interesting to see if we get a nice retracement within the next 6-12 months.
http://bit.ly/11BBkCb
Aegon Delivers Strong Q1 2013 Results [View article]
Net income decreased to EUR 204 million as higher underlying earnings, realized gains on investments and lower impairments were more than offset by losses from fair value items.
Fair value items
The results from fair value items amounted to a loss of EUR 286 million. The loss was mainly due to macro equity hedging programs in the Americas which were unfavorably impacted by strong increases in equity markets during the first quarter.
Telefónica's CEO Discusses Q4 2012 Results - Earnings Call Transcript [View article]
The Next Exxon Mobil? Rosneft, The Biggest Oil Company You've Never Heard Of [View article]
Press Release 06 May 2013: http://www.rosneft.com
ROSN.LSE Past Dividends: http://bit.ly/12dAAON
The Board of Directors also resolved to convene an extraordinary general meeting of Rosneft shareholders and hold it by absentee vote (persons eligible to vote cast their votes on agenda items by voting ballots) on June 18, 2013. The EGM will consider only one agenda item: the approval of related interested-party transactions as part of the joint projects implementation with ExxonMobil (XOM) for exploration and development of hydrocarbons in the offshore areas of the Black and Kara seas. May 6, 2013 (close of business) is set as a record date for the EGM.
Royal Imtech: Short Covering After Negative Analyst Report Proves Unfounded [View article]
Once the AWW issue arose they stated very firmly that the problems in Poland were isolated. The initial estimate was about €100 million, which ended up at €150 million. Then the Germany hit as well, first €150 million, later €70 million extra, €220 million total for Germany. €370 million writedown 'unforeseen' by management and KPMG when the article was written in December.
Then you also have €55 million restructuring costs for Q4 2012 (1000 people) and now again €80 million extra for laying off an additional 1300 people. The new CEO states he 'hopes' all the problems are behind Imtech now, but it will take more time to complete the 2012 audit.
There you have it in a nutshell why Imtech's share price is now hovering at €8,5. It was planned (but still fortunate) selling at €20, but otherwise I would have had exposure to AWW as well, and I don't like it that management thought everything was perfectly fine between buying in December and selling in January after the back and forth with ABN in November on Germany. You need to know what is happening in your company otherwise investing comes down to luck instead of facts.
As also mentioned in a previous post I was back in the stock at €8,35 as of February 18, but out again recently because of the stoploss at cost. I’m now going to wait a while, given the latest events. I want to see the pricing of the rights issue first and see if Imtech’s price holds the €8... which I doubt at the moment
$90 Billion Glencore-Xstrata Powerhouse To Go Ahead After Increased Offer [View article]
The Chinese government has removed the last remaining barrier to the $76bn merger of Glencore and Xstrata after the trading house agreed to sell one of the combined group’s largest mining projects.
The long-awaited approval from Beijing clears the last major hurdle in a 15-month saga to create one of the world’s largest companies in the natural resources industry, combining production and trading under the same umbrella. Glencore expects to close the deal on May 2.
http://on.ft.com/170m7ZF
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
The first time I ventured into both INTC and CSCO years ago I bought too high, even though fundamentals were still fine (undervalued). Given the importance of entry point I started to utilize technical indicators more and option strategies more as time went on. I can't speak for all my holdings, but I consider the best holding period for my core equity holdings to be almost forever.
Although many dividend and income investors argue the same you find the average holding period actually going down and people selling low after buying too high because they emotionally have difficulty dealing with market corrections. Emotional investing is still the biggest pitfall for many retail investors.
Analysts Are Lining Up Behind Cheap Halliburton [View article]
http://huff.to/XAX4vN
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
The problem with debating undervaluation of stocks is that we've been having this debate for 3 - 4 years now with these three. Mr Market is hardly rational, so we may be debating for a few more years before we see fair value.
INTC is again looking good at present in terms of relative price, dividend yield, and the steps they are taking to compete with ARMH in mobile computing. They fact is they were too late to the smartphone and tablet party, but nothing that cannot be rectified with time.
With regards to CSCO and MSFT at present, I would probably go for GE and AAPL instead.
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
What it always comes down to is the bottom-line, so you should also compare the two (ESV vs SDRL):
•Revenue resulting in actual net profit?
•Which dividend level is sustainable?
•Company flexibility if things don't go quite as smoothly as anticipated?
All valid questions, as you can focus your attention on the rewards without sufficient consideration for the associated risks. Debt to equity is one..
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
Ensco quick facts:
World’s second largest offshore driller (after Transocean)
• 9 drillships (includes 3 under construction)
• 13 dynamically-positioned semisubmersibles
• 6 moored semisubmersibles
• 46 premium jackups (includes 3 under construction)
• 3 deepwater managed units
Newest ultra-deepwater fleet
• Average age: 3 years
• 3 more under construction
Industry-leading jackup fleet
• Largest fleet of active premium jackup rigs
• More 400’ water depth jackups than any other driller
• $1 billion+ invested in jackup fleet since 2005
• 3 ultra-premium harsh environment jackups under construction
Geographic reach
• Operations span six continents
• Drilling experience in virtually every major offshore basin
• Headquarters in London; major offices in Angola, Brazil, Mexico, Scotland, Singapore, UAE and United States
Strong financial position and investment-grade credit ratings:
•$11 billion of contracted revenue backlog excluding bonus opportunities
•Long-term debt-to-capital ratio of 29%
•$1.9 billion of available revolving credit facilities
•$487 million of cash and cash equivalents
EVP and Chief Financial Officer Jay Swent commented, “Capital expenditures for full-year 2012 totaled $1.8 billion of which $1.3 billion, or 72%, was invested in new construction. These investments, coupled with $1.9 billion of remaining contractual commitments for rigs being constructed through 2014, will propel the future growth of our company. We also continued to high-grade our fleet by selling two additional rigs in the fourth quarter.”
Mr. Swent added, “We exceeded our 2012 expense synergy target of $100 million related to the (Pride) acquisition and we remain on track to deliver additional synergies in 2013. During 2012, we also restructured subsidiaries from our acquisition to achieve enhanced tax efficiencies and improve capital management flexibility. For full-year 2013, we expect our effective tax rate to be approximately 12%.”
• Baa1 - Moody’s
• BBB+ - Standard & Poor’s
ESV Fleet Status Report March 14, 2013:
http://bit.ly/11HiAQL
Ensco FY 2012:
http://bit.ly/ZqJx7t
February 26, 2013 announcement of ESV's dividend increase:
http://bit.ly/11HiDfz
Seadrill, Transocean And Ensco: Which Is The Best Bet For Now? [View article]
Ensco is current the best managed and safest option IMHO, and the expected increases in both EPS and dividend yield already seen this year and for the coming years may result in further funds moving over from SDRL to ESV given the more favorable risk/reward proposition.
Transocean has made great strides, especially the last 18 months, but the initial retracement from the low 40's to the high 50's has meant many (incl myself) will have locked in profits above $56. The current trail on Macondo will probably have people staying on the sidelines or not substantially increasing position in either BP or RIG until we get a bit more clarity on the outcome.
Royal Imtech: Short Covering After Negative Analyst Report Proves Unfounded [View article]