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Rappenco

Rappenco
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  • Halliburton Analysts Must Be Crazy: Accumulate [View article]
    As oil prices drop to levels that make it unprofitable to produce; then the obvious will and is already happening. The affects of this reduced oil sector activity will eventually affect supply and the bottom in prices will manifest itself. Consumers will
    also have influence on this equation as they will consume more of the product at these reduced prices.
    This is a highly cyclical sector which is somewhat predictable. Oil will bottom and reverse course after we see a capitulation event.
    Dec 8, 2014. 08:18 AM | Likes Like |Link to Comment
  • BP's Dividend Hors D'oeuvres [View article]
    Let's face it. Just about any dividend paying major in the oil sector is in the exact same boat as BP. As Crammer calls it; "accidental high dividend". Might be a good time to a nibble on a smorgasboard of these names and enjoy the quarterly payouts that hopefully won't get cut.
    Dec 7, 2014. 03:37 PM | 3 Likes Like |Link to Comment
  • Ace BDCs Score 11-15% Yield; 12-36% Upside; 23-48% Net Gain In December [View article]
    I also own a few of these dogs. I think DOGs is the operative word.
    Dec 7, 2014. 10:22 AM | 1 Like Like |Link to Comment
  • Petrobras: Trust The Valuations And Fundamentals [View article]
    Roll the dice with this one;
    What are the chances of it hitting $ 5 versus hitting $15. Tough call!
    Dec 4, 2014. 03:55 PM | 2 Likes Like |Link to Comment
  • Seadrill And Transocean, How Real Is That Book Value? [View article]
    It appears that in the current environment only the drillers with rock solid capital structures (balance sheets) and extremely adept management will exit this masacre in decent shape. I am surprised that there is little talk of consolidation amongst these players as the stock prices plummet to 10 year lows.
    On that note; I also find it odd that these companies are being valued at less than they were a decade ago. Is this possible? When it comes to equity investing I guess so.
    Dec 4, 2014. 08:31 AM | Likes Like |Link to Comment
  • Details Emerge On Why Seadrill Cut Its Dividend [View article]
    Question remains is how long will this industry be in a funk.? Obviously as long as oil stays below $ 80 extravagant drilling projects will be on hold and the drillers will suffer. Will the other high paying entities follow suit? Lots of questions and few answers. I own both RIG and ESV so took a good hit yesterday as they declined in sympathy.
    If I get even a slight hint that the drillers are actually the same as the shippers then I will cut my losses and never look back. I stopped checking the price of any of the shippers over a decade ago. That market is eternally flooded with excess capacity. Here is a simple list of companies I compiled in about 5 minutes:
    RIG, ESV, SDRL, NADL, PADC, RDC, NE, DRQ, NE, ATW, DO. Hell there are probably a dozen more of these guys lurking out there. Scared anyone?
    This could easily be the case with the contract drillers. I am always appalled at the number of names in the offshore drilling industry. There are dozens which are publicly traded and the space is clearly overcrowded with a need for some dramatic consolidation.
    Nov 27, 2014. 08:48 AM | 3 Likes Like |Link to Comment
  • Seadrill Suspends Dividends: Expect Big Stock Slide [View article]
    Kind of interesting the number of people that were confident the dividend was safe through the end of 2015. This payout could only be sustained in near perfect conditions which is not the case in the contract drilling space. The cut to 0 is probably compensating for the fact that is was raised to an unsustainable level long ago and now they have to fix the damage.
    They probably can't afford to buy back shares either except for the fact that they are almost free.
    Nov 27, 2014. 08:00 AM | Likes Like |Link to Comment
  • SDRL - Seadrill Limited Announces Third Quarter 2014 Results [View article]
    I have made this point before and am making it again because I think this industry is using a term that is clearly misleading and inappropriate. The term backlog is used in virtually every article written about Seadrill. If Seadrill has an actual backlog then they would not be cutting the dividend to $ 0. A backlog to me represents that there is more demand for their vessels than there is supply and customers are waiting in line to receive Seadrill's services. This clearly is not the case here nor with any other driller for that matter. They mentioned a 20 billion dollar backlog in the release probably with the intent of assuring investors that everything is hunky dory.
    Instead of backlog why don't they call it "future orders" or something else.
    Am I the only one who has this issue? Perhaps an overreaction I guess; it's just that to bundle a 100% dividend cut and mention order backlog in the same release kind
    of irks me.
    Nov 26, 2014. 08:32 AM | 1 Like Like |Link to Comment
  • Hawaiian Airlines Is Undervalued By 43% [View article]
    As someone in the industry and with experience in Hawaii; the Hawaiian Airline name has been round for a long time. If memory serves me; it is nothing more than a vehicle some super wealthy thief uses to line his pockets at the expense of everyone involved. Everyone is the flying public, employees, and anyone who chooses to invest in the company in any form. If you do invest in HA, trade it only.
    As before it will go banckrupt and then re-invent itself with new shares for the unsuspecting. The old shares (current shares) of course will be worthless.
    Nov 24, 2014. 09:14 AM | 1 Like Like |Link to Comment
  • Gilead: Rising Net Income, Zero Debt And Strong R&D Pipeline [View article]
    On PE alone this stock is undervalued in comparison to others in the same industry. I am aware of the reasons for the low PE but also somewhat excited about the wound up spring affect this might have when good news is released.
    Nov 19, 2014. 08:13 AM | Likes Like |Link to Comment
  • Quit Chasing Silly Rabbits And Invest For The Long Run [View article]
    Doug;

    You are 100% correct about the risk/yield correlation.
    Diversify and limit exposure to these high yielders to avoid an overly harsh impact to the portfolio when they tank as they invariably will.
    Right now you can get Seadrill with an 18% yield but not only is the yield not safe neither is the capital investment in the shares.
    Nov 18, 2014. 04:47 PM | 2 Likes Like |Link to Comment
  • Buy Gilead Sciences Now At A Historic Low Valuation [View article]
    Eventually fundamentals will catch up with GILD. Currently the trading is dominated by the short term traders and the volitility is high. A couple of weeks ago the stock hit an intra day high north of 115 and now is flirting with $100. Dips like this represent an outstanding opportunity as not many companies in this space have PEs that are under 20.
    Nov 18, 2014. 09:04 AM | 6 Likes Like |Link to Comment
  • Quit Chasing Silly Rabbits And Invest For The Long Run [View article]
    I too was burned by ARCP and dumped immediately. I won't look back nor regret even if the company shares climb back to the 12 mark. Too many of these companies are nothing more than shell games designed to en richen the top 10 - 20 dudes that run them with little to no regard to the investing public.
    Does anyone think that Top Dog ARCP (CEO) will sacrifice a dime of his $ 10 million pay package as compensation for this accounting disaster under his watch?
    Not a chance!!
    Nov 18, 2014. 08:14 AM | 12 Likes Like |Link to Comment
  • Gilead Has Been Rocked After Earnings, But I'm Looking To Buy! [View article]
    Steve_t;
    From other articles and comments on SA I get the impression that there is significant short activity in GILD. Once these shorts get a little momentum they can have a significant affect on the stock price. On the flip side; short covering can result in dramatic share price increase so hopefully we will get in a situation where the shorts get flushed out.
    Nov 17, 2014. 12:55 PM | 4 Likes Like |Link to Comment
  • This Oil Driller Is Laughing In The Face Of Lower Commodity Prices [View article]
    Using " Oil Driller" in the title can be confusing.
    I immediately think of a drilling contractor company such as ESV, RIG, and SDRL.
    I believe Matador is an E&P company as you mention in the piece and not considered a "driller" even though they do drill for oil. Chances are they use one of the drilling contractors to do their drilling although they might have their own rigs.
    Nov 12, 2014. 08:43 AM | 1 Like Like |Link to Comment
COMMENTS STATS
603 Comments
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