Pfizer (PFE) plans to spin off its remaining stake in Zoetis (ZTS) through a tax-free exchange offer in which Pfizer owners can exchange their Pfizer shares for stock in Zoetis owned by Pfizer (got that?). Pfizer has received a waiver of the 180-day lock-up from the book runners of the Zoetis IPO. PFE +2.1%, ZTS -1.2% premarket. (PR) [View news story]
It is a little too fancy for me. I would have preferred a simple pro-rata distribution to PFE shareholders.
Exxon (XOM) averts a strike at its Baytown refinery, second largest in the U.S., after the United Steelworkers last night ratified a new agreement. Among the changes, XOM will establish a limit on the number of consecutive days an employee can work at the refinery and create a full-time process safety representative to address safety concerns. [View news story]
The Union's demands are sensible and it is good to avoid a strike at this major refinery.
A Look At Chesapeake And Range Earnings: Why Are They Hedging Now? [View article]
In the oil and business you hedge because you and your bankers need some degree of confidence in your next 12 months cash flows. It is irresponsible not to hedge if you have capital expenditures that greatly exceed operating income.
Following months of delays and amid rising costs, Exxon Mobil (XOM) has finally started output at its C$12.9B ($12.7B) Kearl oil sands project in Alberta in Canada. The facility will produce 110,000 bpd of "resource" in its initial phase this year and 4.6B barrels over the next four decades. Kearl is operated by Exxon unit Imperial Oil (IMO). (PR) [View news story]
You need a long term perspective for success in the oil business. XOM has always had it. The pipelines and other necessary infrastructure will be built. All in good time.
Selling Exxon Mobil Could Preserve Capital In The Near Term [View article]
Even excluding capital gains taxes on the sale of XOM, how would you know when to go back in? Maybe you are that smart, I am not.
My best returns have been on stocks I have held for many years. XOM probably will decline a bit from here, but that gives me a better buying opportunity. I buy $10,000 worth of XOM every other week through their DRIP program. I see no reason to change that now.
"It’s going to be a very rough ride” for the oil majors, Oppenheimer's Fadel Gheit says in response to Exxon's (XOM -1%) nearly flat profit growth, falling production and rising costs. “If oil prices go down from here, no major integrated oil company will beat the S&P." Top oil producers may need to try something radical to reward their shareholders, such as the spinoffs of refining businesses by Marathon Oil and Conoco. [View news story]
Gee, I suppose we should panic. More seriously, oil has always been a cyclical business. So what. As someone long about 10000 XOM, I am happy that they are diversified with downstream and chemicals. It is a strategy that has worked for over a century and I see no reason to change it because of a difficult quarter, year or even a series of years. I see no need for a spinoff.
Tim Cook: The (Negative) $250,000,000,000 Man [View article]
How many of you guys have run a public company? I did and returned 22% per annum from IPO to our sale 13 years later. But along way at one point our stock fell out of favor and dropped 75%. There was nothing wrong with the company but diminished expectations and Wall Street loved shorting us. I and the longs had the final laugh three years later when we sold out with the stock up 340%.
My point is a stock's action is often independent of its underlying realities. I honestly don't have the skill to really know whether AAPL will continue to develop innovate products, but I suspect they will. I do know that Cook was actually running AAPL for several years before Jobs's death. His performance since then has been good, except, perhaps in the difficult area of investor relations and perceptions.
I make my money being a contarian investor. Only now, am I buying AAPL. I will continue to buy regularly until it finds a bottom. I predict that bottom will be around $300. But I don't know for sure. I just love buying good operational cash flow at a huge discount to present value and I thank the bears on APPL and those who post here for delivering this bargain to me.
Any Rise In Natural Gas Price Will Make This Stock A Strong Buy [View article]
Yep, I will be put, but I like being long here. Natural gas prices have doubled. I think that is bullish for CHK. Aubrey is gone, CHK still sits on a lot of assets. Its board is now aligned with shateholders' interest. Finances could be better, but CHK is more bankable with higher gas prices.
The U.S. Supreme Court's decision to shut down a lawsuit filed by Nigerians against Royal Dutch Shell (RDS.A) over claims the company was complicit in crimes committed by Nigeria's government is a major victory for corporations that have been sued in the U.S. for their alleged role in foreign atrocities. The ruling could affect other cases, such as those against Rio Tinto (RIO) and XOM over activities in foreign countries. [View news story]
Any Rise In Natural Gas Price Will Make This Stock A Strong Buy [View article]
There is a lot of "smart" money in CHK (Carl Icahn, Mason Hawkins, etc.). There is also a lot of dumb money here - people like myself who are long at higher prices. On the theory that natural gas prices have bottomed out and will rise from here due to the decline in eastern dry gas drilling, I am buying more CHK.
Disclosure: I am long 20000 CHK and have sold naked puts on another 10000 with a strike price of 19.
Given the recent rise in natural gas, there is a high probability that CHK will bounce back if the market recovers.
Pfizer (PFE) plans to spin off its remaining stake in Zoetis (ZTS) through a tax-free exchange offer in which Pfizer owners can exchange their Pfizer shares for stock in Zoetis owned by Pfizer (got that?). Pfizer has received a waiver of the 180-day lock-up from the book runners of the Zoetis IPO. PFE +2.1%, ZTS -1.2% premarket. (PR) [View news story]
Exxon (XOM) averts a strike at its Baytown refinery, second largest in the U.S., after the United Steelworkers last night ratified a new agreement. Among the changes, XOM will establish a limit on the number of consecutive days an employee can work at the refinery and create a full-time process safety representative to address safety concerns. [View news story]
Spyglass Resources Corp: An Undervalued, High-Yield Dividend Performer [View article]
Look for the dividend to be suspended within 6 months. The reason: too much debt and inconsistent operational performance.
Disclosure: I am long 130,000 shares to my chagrim!
A Look At Chesapeake And Range Earnings: Why Are They Hedging Now? [View article]
Look Beyond Tomorrow And Buy Exxon Mobil [View article]
Chesapeake Sells Marcellus Acreage To Southwestern At $574 Per Acre: Quick Read [View article]
Following months of delays and amid rising costs, Exxon Mobil (XOM) has finally started output at its C$12.9B ($12.7B) Kearl oil sands project in Alberta in Canada. The facility will produce 110,000 bpd of "resource" in its initial phase this year and 4.6B barrels over the next four decades. Kearl is operated by Exxon unit Imperial Oil (IMO). (PR) [View news story]
Selling Exxon Mobil Could Preserve Capital In The Near Term [View article]
My best returns have been on stocks I have held for many years. XOM probably will decline a bit from here, but that gives me a better buying opportunity. I buy $10,000 worth of XOM every other week through their DRIP program. I see no reason to change that now.
"It’s going to be a very rough ride” for the oil majors, Oppenheimer's Fadel Gheit says in response to Exxon's (XOM -1%) nearly flat profit growth, falling production and rising costs. “If oil prices go down from here, no major integrated oil company will beat the S&P." Top oil producers may need to try something radical to reward their shareholders, such as the spinoffs of refining businesses by Marathon Oil and Conoco. [View news story]
Still Too Much Uncertainty At SandRidge [View article]
The stock is selling at its pro-forma PV-10. Seems cheap.
Any Rise In Natural Gas Price Will Make This Stock A Strong Buy [View article]
Tim Cook: The (Negative) $250,000,000,000 Man [View article]
My point is a stock's action is often independent of its underlying realities. I honestly don't have the skill to really know whether AAPL will continue to develop innovate products, but I suspect they will. I do know that Cook was actually running AAPL for several years before Jobs's death. His performance since then has been good, except, perhaps in the difficult area of investor relations and perceptions.
I make my money being a contarian investor. Only now, am I buying AAPL. I will continue to buy regularly until it finds a bottom. I predict that bottom will be around $300. But I don't know for sure. I just love buying good operational cash flow at a huge discount to present value and I thank the bears on APPL and those who post here for delivering this bargain to me.
Any Rise In Natural Gas Price Will Make This Stock A Strong Buy [View article]
So we will see how it works out.
The U.S. Supreme Court's decision to shut down a lawsuit filed by Nigerians against Royal Dutch Shell (RDS.A) over claims the company was complicit in crimes committed by Nigeria's government is a major victory for corporations that have been sued in the U.S. for their alleged role in foreign atrocities. The ruling could affect other cases, such as those against Rio Tinto (RIO) and XOM over activities in foreign countries. [View news story]
Any Rise In Natural Gas Price Will Make This Stock A Strong Buy [View article]
Disclosure: I am long 20000 CHK and have sold naked puts on another 10000 with a strike price of 19.
Given the recent rise in natural gas, there is a high probability that CHK will bounce back if the market recovers.