ignorant

13 Comments

    • Chevron's Share Price Looks Most Compelling [view article]
      Regarding the comment about BP's reserves. BP has reserves in equity accounted entities of 3.9 billion barrels of liquids and 3.8 billion feet cubic feet of natural gas. The equity interests need to be added into the 5.5 and 41.1 to arrive at total reserves. See page 180 and 181 of the 20-F. Sep 03 03:13 PM
    • Chevron's Share Price Looks Most Compelling [view article]
      BP's total proved reserves are substantially higher than CVX and the market value of BP is about the same as CVX. Sep 03 10:13 AM
    • Top Foreign Dividend Stocks Traded in New York [view article]
      It is not true that XOM is not on the list because they invest most of the income in growth initiatives. They invest most of the income in stock buybacks. Aug 31 10:14 AM
    • Exxon Shareholders Suffer a Windfall Loss of 13.7% [view article]
      XOM's share price is declining because production is declining and reserves are not growing. Oil and gas companies are valued based on reserves and production. Aug 31 10:11 AM
    • Has Exxon Topped? [view article]
      I agree that XOM's dividend payout should be increased to a competitive level with the other majors. The decline in production ( 8% last quarter) is killing the stock. Investors will pay a premium for energy companies that increase production and reserves. The stock will only recover if XOM is able to start increasing production and reserrves. Buying back stock does nothing to make the exploration business a success. Aug 07 02:08 PM
    • Wells Fargo Lays Bear Trap on Wall Street [view article]
      The change in the 120 to 180 write-off period did not change the expense to earninngs. The $265 was charged against earnings although it was not charged against the reserve (balance sheet) as a write-off. I suggest that all the readers of this article read the WFC earnings release to understand this distinction. Either the author of this article does not understand this or is attempting to distort the facts.

      I also suggest that readers understand the difference between the terms: charge-off, provision of credit losses (income statement), and allowance for loan losses (balance sheet). WFC hit the income statement with the $265 million in the provision for credit losses expense. It will not charge the $265 million against the reserve until the end of the 180 day period.       Jul 19 09:57 AM
    • Wells Fargo Leaves Much Uncertainty in Wake of Latest Earnings [view article]
      There is a common misconception in the market that the change in non-performing loans from 120 to180 days distorted earnings. The impact of this change is $265 million and WFC included the hit to earnings for the 120 day period. WFC did not write-off ( charge-off) the $265 against the balance sheet reserve but this has no impact on earnings. When the $265 million is charged off it will hit the reserve (not earnings). This is explained in the earnings release.

      If the author is interested in what type of mortgage backed securiities have unrealized losses why doesn't he ask WFC.       Jul 18 11:06 AM
    • Was That a Bottom? Should We Even Care? [view article]
      I though it was pigs get rich and hogs get slaughtered. In any event, CNBC and the rest of the financial media would not be in business if they did not pretend that their guests could predict the future. Well let's see, to predict the future we need to predict terrorist events, energy prices, financial bubbles, political events, climate changes- on and on for the rest of the one million variables in the equation. My only prediction is that mankind will somehow muddle through to solve problems and make some small advances. Jul 17 04:27 PM
    • Exxon's Hoard [view article]
      The statement that XOM will not invest unless the rate of return on capital is 35% is incorrect. XOM's internal hurdle rate on capital projects is no more than 15%. The 35% return on capital is the current rate of return on previous capital investments which may have been made many years ago. Jun 06 10:33 AM
    • Energy Stocks: Which Horse To Ride for Income? [view article]
      Good Call on BP. At around $62 share BP's market cap was around 200 billion while XOM's market cap was $450 Billion. BP's proven reserves are about 90% of XOM's so on a reserve basis BP looked cheap. XOM should be given some additional value for larger refinery and chemical capacity but no where near the difference in market value between the two companies. BP also had serious management problems which are being corrected May 29 02:32 PM
    • Another Home Run for Leukadia? [view article]
      LUK's investment in Fortesque is worth far more than $1.8 billion. LUK is entitled to a 4% fee on the iron ore sold by Fort. from certain iron ore deposits. Fort. has set up a liability on its balance sheet for the present value of this obligation ( about $2 billion). This makes LUK's investment worth about $4.0 billion. May 21 02:41 PM
    • How Much Are Goldman's Level 3 Assets Worth? [view article]
      The article and reader comments reflect the problem with the financial system. We don't know how Level 3 assets are valued since there is no disclosure of the assumptions used in the valuation models. Even if this information was disclosed, I doubt if most investors could make a sound judgment since the models are based on complex mathematical formulas that may not reflect current market conditions. My best position is to avoid these stocks because I have no way of making a judgment about what these assets are worth. If you have confidence in the character of the people that run these firms then you may choose to invest. Apr 26 11:43 AM
    • Commodities and the Fed: Answering the Skeptics [view article]
      Why would speculative behavior have to be reflected in inventory builds? If speculators are using futures contracts and continually rolling over the contracts and adding new contracts month to month prices would increase with no inventory build? Apr 23 03:42 PM
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