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Rohan C. Pease

 
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  • Why Ford Is Investment Grade [View article]
    Thanks Tdot,

    You bring up a valid point for readers. However in my analysis I'm concerned with the effect an Investment Grade rating would have on Ford's capital structure, and the PV of savings to the shareholder thru reduced interest expense. The assumptions I used (100 bps interest reduction across entire capital structure) may vary among business segments and is up for debate, however the overall savings will be significant. It will be up to the investor to determine if the assumptions need to be altered and to what magnitude.
    Apr 2 10:32 PM | Likes Like |Link to Comment
  • Why Ford Is Investment Grade [View article]
    Great question Spawn, Looking at Ford's balance sheet as of December 31, 2011, Ford reports their Secured Revolving loans under their automotive sector debt as debt payable within one year and is excluded from my LT debt calculations. To clarify the $130 Million drawn is used for letters of credit, and as of the December 31, 2011 annual report this line item shows a zero balance. The $130 million figure was taken from a press release.
    Apr 2 06:45 PM | Likes Like |Link to Comment
  • Why Ford Is Investment Grade [View article]
    *Correction* - 5-year CDS trade at 113bps for bonds rated (Ba1/BB+) instead of Ba1/BBB+
    Apr 2 05:38 PM | Likes Like |Link to Comment
  • Breakfast At Harry Winston's, Not Tiffany's [View article]
    N.H. - thanks for the good question. Simply their joint venture diamond fund is used to purchase actual polished diamonds and not actual hard assets like the Ekati mine. The fund is an extension of HWD's retail operations. HWD historically sells most of their rough diamonds into the open market, then buys only the best quality polished diamonds for their jewelry. HWD will provide the fund with pricing info.

    HWD operates both retail and mining divisions individually while using data between the divisions to gauge pricing trends.

    THe Ekati mine has a projected valuation of $500MM - $750MM; the limit of their diamond fund is capped at $250MM.
    Mar 20 03:34 PM | Likes Like |Link to Comment
  • Goldman Sachs Reverses Tune on Mid-April Bearish Call on Commodities [View article]
    Love the chart, I'm a visual person and its a good graphic with many key metrics including currencies.
    May 24 02:40 PM | Likes Like |Link to Comment
  • Sell in May and go away? It's typically a good idea, according to stats from Jeffrey Hirsch. If you put $10K into the market on Nov. 1, 1972, and sold everything on April 30 and rebought on Nov. 1 every year, you'd have more than $160K today - average annual return: 7.4%. If you’d done the reverse, investing every May 1 and selling every Oct. 31, you’d have $7,863 - average return: 0.4%.  [View news story]
    How is it possible to have a positive return and end with less principal then when you started. $7,863< $10,000
    Apr 28 06:16 PM | 6 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Typo - In the Quantas blog I believe that the USD amount should read $64.4M instead of $24.8M; the inverse is currently displayed. GBP = 1.61USD instead of USD = 1.61 GBP. Thanks.
    Nov 15 09:24 AM | 1 Like Like |Link to Comment
  • What the Potash Buyout Is Telling Us [View article]
    Great article, I agree with your insights on the commodity space heating up and how that bodes well for the overall market. China is certainly in the drivers seat on this one, and bonds are becoming quite frothy at these levels. Continued easing from the FED may indeed throw some gasoline on the fire and "commodities" will rejoice because of it.
    Aug 25 07:49 PM | 2 Likes Like |Link to Comment
  • 15 Possible Takeover Candidates [View article]
    In regards to Insider Ownership I agree with Positive thoughts, the windfall would be very attractive. Further, if management in the target company is to lose their jobs, you assume that they will lose their job whether they have a large ownership stake or not, I don't see how this can be used as a qualifying criteria for screening for an acquisition target. The other metrics do make a lot of common sense although EPS growth of 5% can hardly be classified as "large profits".
    Aug 23 07:29 PM | 2 Likes Like |Link to Comment
  • BIS Gold Swaps and China: Two Cases for Gold Bearishness [View article]
    First, I want to agree with you I do believe China is adding to their gold positions and ofcorse they won't admit it now. However I just want to throw out there that China has an ample domestic supply of gold mines and is a major supplier of Gold to the golbal market, so they may have some patience on their side. Just something to keep in mind. I however have a quarter of my portfolio in gold and I don't intend to sell anytime soon.
    Jul 9 06:58 PM | Likes Like |Link to Comment
  • Berkshire Wins World Cup Bet [View article]
    I love it!!! First, I would like to say that I am a proud Berkshire shareholder. Secondly, when I first heard of Carrefour offering to refund the cost of a flat screen to customers who bought ahead of the World Cup if Fance won I wonderd how they were going to hedge this exposure. I figured they had to, such a liability if they didn't, so it's really neat to find out who the counterparty was, not to mention BRK shareholders benefited. News like this I have grown accustomed to and it's why I am a shareholder in Berkshire. Thanks for the great article,
    Jun 24 06:38 PM | 1 Like Like |Link to Comment
  • What Does Australia’s Election Result Mean For Mining Stocks? [View article]
    Fortescue (Aussie TIcker FMG) trades on the pink sheets as FSUMF here in the states. It's a bit of a thinly traded stock with an average of 100K shares changing hands each day. Point being is that it is a main producer of iron ore in the Palibra region and I was supriesed to hear talk of Aussie miners and this not be mentioned. It has a high beta towards the Chinese market and may have been one of the hardest hit due to the recent tax proposal since alot of its expansion is funded thru internal cash flows.
    Jun 24 06:18 PM | 1 Like Like |Link to Comment
  • What Does Australia’s Election Result Mean For Mining Stocks? [View article]
    Also Fortescue held is gains and was up fractionally on the day, moving against the miners you mention.
    Jun 24 03:46 PM | 2 Likes Like |Link to Comment
  • What Does Australia’s Election Result Mean For Mining Stocks? [View article]
    Aussie miners, you left out FMG!!!
    Jun 24 03:41 PM | 2 Likes Like |Link to Comment
  • Petrobras, Suncor, And Chesapeake: Positioned to Capitalize on BP’s Downfall [View article]
    (PZE) Petrobras Energia SA is an Argentina-based integrated company

    (PBR) Petroleo Brasileiro SA-Petrobras is an integrated oil and gas company.

    I am recommending Brazilian State Owned Petrobras [ADRTicker "PBR"]
    Jun 7 07:02 PM | Likes Like |Link to Comment
COMMENTS STATS
186 Comments
397 Likes