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Timothy McIntosh

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  • Apache: Risks Are Well Discounted [View article]
    Thanks for the comments. Porkyboy........ Apache is not a classic high yield stock, just a fairly consistent dividend grower. My focus on investing in dividend growers is twofold. One, dividend growers have outperformed the market, as a class, over the preceding 39 years. I referenced this in my recent Zimmer stock article, here is a link; http://bit.ly/Uj56kU. Second, growing dividends by double digits over time demonstrates consistency of cash returns to shareholders by management. I actually prefer those firms that pay lower dividends but raise them faster than an old line firm that pays a very high yield, but with limited growth. On Wheatstone, yes it is a minority 13% interest, and most likely majority will rule. Kitimat is a true wild card at this point. I wanted to at least mention these LNG plays as it will be an area of big growth. Whether or not Apache can capitalize is still in question. But at the current valuation metric, Apache is very cheap.

    For Jan Lessner, yes political risk in Argentina for Apache, but I believe there is less risk than Egypt, and revenue from Argentina for Apache is far less than the near 30% of cash flow Apache generates in Egypt.

    Thanks....... TM
    Oct 31 10:18 PM | Likes Like |Link to Comment
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