Argentina better hire more currency-sniffing dogs as dollar deposits continue to flee the country, now off 42.3% since October. Following the government appropriation of the energy industry, depositors and investors aren't waiting around to find out the next target, writes Sober Look. [View news story]
Kudos to Christina Kirchner for running the economy into the ground and for policies that have sent investors and dollars heading for the exits. Argentina is no longer a haven for any investment including any oil and gas major that is even thinking of going in to partner with YPF. Investor beware! The outright theft of YPF should serve as ample warning for any that are foolish to even think of investing in Argentina. Take your hard earned dollars elsewhere!
Energy Company YPF Shares Are 46% Higher In Argentina Than The U.S. ADR Value [View article]
YPF is done! Argentina has already stated that the main objective of the company is to provide oil and natural gas at very low cost to the people of Argentina and that the company will no longer pay dividends. This all sounds like a recipe for disaster for all concerned. No incentives for foreign investment, heavy handed government involvement in public companies and an economy in tailspin. It is no accident that the government has restrictions on dollar outflows as the country is no place for investment and it would be a poor investment decision for any oil and gas major to want to step into this mess and invest untold billions to extract oil and gas to then sell it at a fraction of the world market price. Kirchner wanted YPF so she and her cronies stole it to the accolades of her supporters. Lets see her do what she accused YPF of not doing; invest tens of billions they don't have into cheap energy for the masses.
Shipping tycoon John Fredriksen is set to raise his stake in Seadrill (SDRL +2%), after selling shares earlier this year, as the rig contractor’s share price has slumped in recent months. Fredriksen will exercise a put option to buy back up to 6M shares from Goldman Sachs, or a quarter of the 24M shares it sold for more than $1B earlier this year. [View news story]
I never could understand the price swoons of Seadrill when it has such a huge order backlog and offers one of the highest dividend yields among the oil drillers. Its ultra-deepwater drills are in high demand and fully contracted out giving it revenue stability, its debt while high is amply covered and the company is committed to returning cash to shareholders through its high dividend yield. Market uncertainty provides the opportunity to pick up shares on the cheap and lock in an attractive dividend as well. Long SDRL and NATDF.
SeaDrill's West Polaris Contract Provides Further Evidence For Strong Offshore Drilling Fundamentals [View article]
Given all the positive trends in the ultra-deepwater space it is a wonder that shares of SDRL and NATDF have been beaten down so far that at present prices they offer such compelling high yields. In the case of NATDF the yield at current prices is well north of 11% and SDRL not far off of 10%. One day we will look back at this period of European Union difficulties as a time of great opportunity most likely realized after the time has passed. Long SDRL and NATDF.
Argentina And Its Latest Nationalization [View article]
Good article. I have had my shirt handed to me with prior investments in YPF and TEO. Argentina is a bonafide economic basket case with so much government interference that all public companies are afraid to pay dividends in fear that they will incur government wrath and be nationalized. As for YPF its best days are behind it as Argentina will have difficulty getting partners especially with price caps in place which severely limits oil and gas profits. Further, the gov't has already stated that YPF will pay no dividends going forward and all profits are to be reinvested back into production. The new objective of YPF is to provide the maximum oil and gas that it can extract and sell it at extremely low levels set by the government.
Southern Copper Corporation Is A High Growth Dividend Play [View article]
Despite al the risks inherent in a company with the bulk of its operations in South America, mostly in Peru, SCCO has a great long term track record and a good dividend play. With the current market decline which has really hit the commodity resource stocks hard I could see a good entry point at current levels as many of these stocks are nearing 52 week lows and are offering compelling long term value as well as high dividend yields.
BHP's Price Warning Brings The Commodity Crash Playbook Back In Focus [View article]
Good article! The recent plunge in commodity related stocks has been brutal and with possibly more pain to come. Hoping for a steeper selloff in SCCO as valuations are compelling. Why not purchase BBL which is the UK version of BHP except no tax withholding? Other commodity plays are closing in on 52 week lows and at some point one may have to hold their nose and step in and buy. Purchases made at these levels will end up being your biggest winners over the long run.
Seadrill Is Likely To Increase Dividends Going Forward [View article]
As much promise as SDRL has going forward I believe that NATDF represents a better bargain and it currently carries a dividend of close to 10%. It is scheduled to list on the NYSE during the second half of this year which should help it get the attention of investors. Another SDRL equity cutout on the horizon is the coming listing of SEABRAS which represents the bulk of SDRLs offshore operations in Brazil. Seadrill is looking to set up Seabras as an MLP and has yet to finalize its operations. It will be set up as a high dividend paying company but its listing will be limited to the Brazilian market initially. Long SDRL and NATDF.
Updated Performance Review For 6 High Yield Canadian Oil And Gas Companies [View article]
ERF has too high a payout ratio, currently over 150% to sustain the dividend over the long term. In fact, in their last earnings report that stated that the dividend will be reviewed for a possible cut. They were just being realistic given the current price for natural gas which represents almost half of production. The same issues are also impacting PGH and PWE. BTE is much more an oil play and a better pick. Take a look at PBA for better potential growth with income.
PBR.A are non-voting shares with PBR being the voting share class. PBR.A is the better buy in my opinion however, government interference makes me look elsewhere for an oil and gas major. Even with all the potential reserves and recent additional finds the government uses PBR as its own personal cash cow and further imposes price limits on the oil and gas it sells inside Brazil. Capital spending will be of historic proportions to get at its oil finds and the stock has never really been the same since its record breaking 70 billion dollar secondary offering. Look elsewhere.
Ecopetrol: A Latin American Oil Investment That Continues To Deliver [View article]
Good article and I agree on the present and future prospects for ecopetrol. What wasn't covered was the commitment to paying out 70% of profits as a dividend and with the payout this year at $3.38 per ADR representing a dividend of over 5%. As profits continue to climb so will the dividend. In addition, Ecopetrol has recently discovered additional deposits of oil with vast tracts of land yet to be explored. Great prospects going forward with none of the baggage that comes with other Latin American oil and gas companies. Long EC.
The Argentine ETF (ARGT -4%) continues to tumble (off 13% in a month) as the U.K. sends a warship to the South Atlantic. Yesterday, President Kirchner yesterday called the U.K.'s claim on the islands "absurd." Also not helping are growing threats of nationalization of the country's oil giant YPF. [View news story]
Given that the government has already announced to take over YPF in some form any investment in that company is dead money at best or possible close to total loss at worst. The present government is on the path to self destruction and the economy is what will pay the price. It has undertaken a massive misinformation campaign on its attack of YPF while ignoring long running government policies which have strangled the profitability potential of any oil and gas investment. Continued pressure on other Argentine companies to withhold or cancel dividend payments is unwarranted government interference on private companies. There is a reason that capital is leaving the country and much is due to the poor handling of the economy and policies which are counterproductive and will accelerate capital flight. On the other hand this is the duly elected government and sometimes you have to reap what you sow.
Telecom Argentina: Buying The Dividend - Part II [View article]
Good article and it all comes down to whether the dividend gets paid or not. Being that all the negatives on TEO are already on the table might this not be the right time to consider a position? The Argentine government is the biggest obstacle to encouraging investment in the country with all their anti-shareholder sentiment. Should this change at anytime I would expect many Argentine stocks to rally sharply as they have all been pressured down with government interference. The time to buy is when no one wants in. If you wait until all skies are clear then you probably have missed the best gains.
Telecom Argentina: Buying The 11.9% Dividend [View article]
Argentina has installed dollar export controls and is putting pressure on dividend paying companies to limit or cancel dividend payments. This will impact companies like BMA, BFR, YPF and TEO. I did read that TEO may pay a partial dividend to be decided at their April shareholder meeting. On a valuation basis many Argentine companies offer compelling value but government intervention has really wrecked the investment climate there. Any investment made should be seen as speculative but you are definitely picking up shares on the cheap and if the situation corrects itself then the potential to gain big will present itself. Long TEO.
Why I'd Sell Overvalued Verizon And AT&T To Buy These Dividend Stocks [View article]
Argentina has installed dollar export controls to stem capital flight out of the country and further is pressuring Argentine companies to limit or cancel dividend payments. This will impact TEO, BMA, BFR and YPF. All these stocks show great yields but will they get paid? TEF headquartered in Spain has cut their dividend twice of late and is dragged down by the poor economy in Spain and elsewhere in Europe. They do have extensive revenue coming from Latin America especially Brazil but not enough to prevent dividend cuts. VOD will be your safest bet but not exciting enough to sell out of VZ and T. Long TEO on a valuation basis as this is a very profitable company whether it pays a dividend or not.
Argentina better hire more currency-sniffing dogs as dollar deposits continue to flee the country, now off 42.3% since October. Following the government appropriation of the energy industry, depositors and investors aren't waiting around to find out the next target, writes Sober Look. [View news story]
Energy Company YPF Shares Are 46% Higher In Argentina Than The U.S. ADR Value [View article]
Shipping tycoon John Fredriksen is set to raise his stake in Seadrill (SDRL +2%), after selling shares earlier this year, as the rig contractor’s share price has slumped in recent months. Fredriksen will exercise a put option to buy back up to 6M shares from Goldman Sachs, or a quarter of the 24M shares it sold for more than $1B earlier this year. [View news story]
SeaDrill's West Polaris Contract Provides Further Evidence For Strong Offshore Drilling Fundamentals [View article]
Argentina And Its Latest Nationalization [View article]
Southern Copper Corporation Is A High Growth Dividend Play [View article]
BHP's Price Warning Brings The Commodity Crash Playbook Back In Focus [View article]
Seadrill Is Likely To Increase Dividends Going Forward [View article]
Updated Performance Review For 6 High Yield Canadian Oil And Gas Companies [View article]
Petroleo Brasileiro: Crouching Tiger, Hidden Dragon [View article]
Ecopetrol: A Latin American Oil Investment That Continues To Deliver [View article]
The Argentine ETF (ARGT -4%) continues to tumble (off 13% in a month) as the U.K. sends a warship to the South Atlantic. Yesterday, President Kirchner yesterday called the U.K.'s claim on the islands "absurd." Also not helping are growing threats of nationalization of the country's oil giant YPF. [View news story]
Telecom Argentina: Buying The Dividend - Part II [View article]
Telecom Argentina: Buying The 11.9% Dividend [View article]
Why I'd Sell Overvalued Verizon And AT&T To Buy These Dividend Stocks [View article]