Patience When Investing Gets You The Big Candy Bar [View article]
This fits in well with 4 factors that move a stock's price: 1. fundamentals 2. technicals 3. sector trend 4. market trend
I get into trouble sometimes buying when there is a game changer on fundamentals, yet technicals show the chart is due for a pullback, the sector shows a reversal, or the general market is up too far too fast and due for a pullback. I tend to have trouble scaling into a position in such situations. Buying a full position should be reserved for when all ducks 1 through 4 are lined up and pointing higher - market at a bottom; sector looking promising; technicals show a double bottom is at hand rather than mid-to upper end of 52-week range, and fundamentals show profits are expected to rise.
Check out Renewable Energy Group (REGI). P/B = 0.58; TTM P/E = 2.36. Currently in low $6 range PPS; they will receive a $60M (equivalent to $2 EPS) payment this quarter for retroactive 2012 tax credits for biodiesel blenders. The 2013 blender credit should amount to even more due to production increasing with EPA RFS2 biodiesel annual mandate increasing from 1.0B to 1.28B gallon requirement. REGI has acquired several companies and is the largest independent biodiesel producer in the USA. Expecting 2013 EPS from credits to equal $4.60/sh, additional organic profits will contribute on top of this figure towards EPS.
6 Oil And Gas Stocks Undervalued Compared To The Graham Number [View article]
Here is a show-stopper for Graham's number undervalued stock:
Renewable Energy Group (REGI), largest independent biodiesel producer in the US. Statistics from E*Trade:
Current P/B = 0.58 Current TTM EPS = 2.662 Current PPS = 6.34 Book value = PPS / (P/B) = 10.93 Graham's Number = 25.59 = SQRT ( 22.5 x 2.662 x 10.93 )
So PPS = 6.34 = 0.25 x 25.59, or a factor of 4 undervalued.
REGI just issued an 8K under the radar on January 8, which projected that the dollar value of the Federal blender tax credit retroactive for 2012 biodiesel sales will equal 1/3 of 2012 gallons sold. One-third of 180 million gallons = $60 million additional revenue, according to the 8K will be booked in this quarter. With 30 million outstanding shares in round numbers, that is $2 added to EPS.
For 2013, assume sales will be AT LEAST 30% higher due to 28% increase in 2013 vs. 2012 federal biodiesel blending mandate, and due to several acquisitions by REGI in 2012. So the blender tax credit for the current year adds another $2.60 to EPS.
GreenHunter Energy (GRH +6.9%) is initiated at Outperform with a $3 target at Boenning & Scattergood, which cites operations in major shale plays led by Appalachia and recent Eagle Ford acquisitions. The firm says revenue and earnings growth will be driven by continued expansion of services in all plays, acquisitions and utilization of assets including SWD and trucking. [View news story]
Renewable Energy Group (REGI) is a better play for this year. 8K was released under the radar on January 8th - they project that the retroactive 2012 biodiesel blender tax credit will allow them to book in the current quarter revenues equal to 1/3 of gallons biodiesel sold, which amounts to about $60M into 30M sharecount, for about $2 added to quarterly EPS for Q ending 03/31/13. For 2013 expect maybe 30% higher blender credit (due to acquisitions in 2012 and due to 28% hike in annual RFS2 biodiesel federal mandate).
Bottom line is for the current year EPS should easily attain $4.60 just from the credits, factoring in organic profits if soybean yields are normal will only add more to the bottom line. So FWD P/E is 1.35 here - I see a double or triple in REGI this year.
2 Latin American Plays On An Improving Chinese Economy [View article]
I held EPU, GXG, also EWZS in fall of 2010. During the right market cycle they can all do quite well. However, since the market has been climbing for 6 months, it's not a sure thing. At market highs stocks tend to churn - the indices remain at steady levels, with individual stocks that haven't spiked going up, and others going down. This condition is best for a stock-pickers market, not an index trade.
One particular stock with a good upside for this year is REGI, a biodiesel producer. Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago, stating they will receive a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...to be booked during this quarter.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings. With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS during this quarter.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60. That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE. I see a potential TRIPLE in this stock price as this plays out this year.
Natural Gas: Will 2013 Goldilocks Turn Into A Bear? [View article]
While natural gas has oversupply and tight margins, one stock that has guaranteed gains and huge demand for the next year is the biodiesel producer Renewable Energy Group, which will get a tax credit for every gallon sold to be blended into diesel.
Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago without fanfare - wasn't even picked up by Yahoo finance or many other newsfeeds.
In the 8K, REGI stated they expect a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...WOW!
The 2012 blender credits will be realized IN CURRENT QUARTER.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings.
With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS for THE CURRENT QUARTER.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60
That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE.
I see a potential TRIPLE in this stock price as this plays out this year.
Which Oil Services Stock Is The Best Bet For 2013? [View article]
Oil services are tightly correlated to the price of crude. One stock that has guaranteed gains for the next year is the biodiesel producer Renewable Energy Group, which will get a tax credit for every gallon sold to be blended into diesel.
Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago without fanfare - wasn't even picked up by Yahoo finance or many other newsfeeds.
In the 8K, REGI stated they expect a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...WOW!
The 2012 blender credits will be realized IN CURRENT QUARTER.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings.
With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS for THE CURRENT QUARTER.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60
That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE.
I see a potential TRIPLE in this stock price as this plays out this year.
Paybacks Are Hell, But Volatility Creates Opportunity [View article]
" self-gratifying, self-centered expediency, not what is morally right. Totally obsessed with instant gratification." ... Agreed. But the solution is not to dismantle medical care programs, social security, the educational system, and public services like police, firefighters, etc. The solution is to believe in shared sacrifice and raise EVERYONE'S taxes back to the levels 12 years ago - those tax rate levels were still low compared to our grandparents productive years in the 50s, 60s, and 70s. There is no free lunch when you just want to reap the rewards of a first world country but charge it all on a credit card.
Fiscal Thursday: To Cliff Or Not To Cliff - That Is The Question [View article]
Just vote in a 0.05% equity trade transaction fee and be done with it. It would not, relatively speaking, hurt retail investors - trades of $10,000 or $100,000 would see a tiny fee of $5 to $50, but the big firms would raise plenty of revenue for uncle sam and at a tiny cost percentage of a typical trade's profits. If the math works, we won't need to pinch individuals or businesses due to the massive trading volume in the US markets. If it needs more to balance the budget, vote for closing US bases overseas that are located in countries with no real threats within 2000 miles of their borders.
Fiscal Cliff: Let's Call Their Bluff [View article]
If the data cited are actually correct, a financial transactions tax of 0.05% would be a fairly painless way to raise revenues. For the retail investor who trades in lots between $10,000 and $100,000, the tax would amount to $5 to $50 on trades of this size. A much smaller slice of the pie to give up to raise revenues than, for example, raising the top income tax rates by 5%.
How T. Boone Pickens Led Me To 2 Great Stock Picks [View article]
HAL was a great buy at the lows in 2011. Right now it could go either way short term, but remains an excellent long term play. One stock with both short term and long term catalysts is the small cap oil wholesaler $LPH. They are poised for 70% forward EPS and sales growth over the next 5 - 6 quarters, based on pickup in industrial oil demand and consumer gas consumption in heavily industrialized Shanxi province in China. Between the closing of an acquisition in September (which increased storage capacity by 80%), and the pickup in oil demand across China, these two catalysts ensure continual QoQ and MoM net income growth throughout next year. LPH has no debt, having purchased their latest facility entirely from profits and without shareholder dilution, and has no stock warrants (a few leftover warrants from a 2009 expansion were allowed to expire in November). Their auditior performed a reconciliation of 2009 to 2012 SAIC/SAT tax filings versus SEC filings, including directly observing data on PRC computers in the state tax office, which makes this stock very legitimate.
A Sea Of Opportunities In Japanese Equities [View article]
Comparing Japan and China, both are very undervalued presently, however, China is undervalued AND has selected industries poised for double-digit growth based on national trends. One such area is oil and gas - a recent pickup in industrial production has triggered industrial oil use by coal companies and other heavy industry. In addition, a pickup in auto sales and a general consumer trend towards increasing urbanization and middle class spending has driven gasoline consumption higher. GDP overall is projected to be right around 8% next year, and in Shanxi province growth will be around 10%.
$LPH, the largest private oil wholesaler in growing industrialized Shanxi province, is poised to capitalize on this growth, having just completed an acquisition of a turnkey oil storage facility that adds 80% to their existing storage capacity and which will add 70% to net income over the next 5 or 6 quarters. The facility was paid for with cash, not via dilution, and there are no stock warrants leftover from a prior (2009) expansion. The CEO has been with the company 17 years since its inception, and understands how to arbitrage oil sales in a climate where price controls change over a 22-day lookback window for crude oil. Between oil demand growth at their 2 existing facilities and sales growth at their newest facility, these two strong catalysts ensure that EPS will keep increasing QoQ and MoM for the foreseeable future. This company has also established legitimacy with their auditor performing a reconciliation of 2009 to 2012 SAIC/SAT tax filings versus SEC filings, including direct observation of tax filings on PRC computers in the state tax office.
Bakken Upgrade And New Ghana Discovery May Rally Hess [View article]
$LPH - MoM growth will be shown in wholesale oil and gas product sales for November, which repeats the pattern catalyst that started after Huajie (new acquisition) sales figures began being released in October. Calm before the uptick. This stock is an excellent pick for those who want to buy and sit back - you know which direction sales are going for the next 6 quarters, and PPS will follow. Huajie facility ramp-up plus economy picking up in China make for a double catalyst for the foreseeable future - forward EPS for second half of next fiscal year is 70%-range growth.
Atlas Pipeline: Pullback On Recent Acquisition And Offering Creates Opportunity [View article]
I think Atlas Pipeline is a good choice for a conservative pipeline stock, given how they are positioned for growth. Small cap overseas oil stocks have much more short term growth potential, but accompanying higher beta. The exploration and production stocks (E&P) tend to have higher risk overall compared to pipelines and wholesalers/distributors.
In contrast, wholesalers and distributors can count on steady customer demand and do not have high overhead and risk from uncertain exploration projects. One overseas oil stock in this category with a strong QoQ growth ahead is oil wholesaler Longwei Petroleum (LPH), which closed an acquisition in late September for a new turnkey facility that is expected to provide 70% upside to EPS over the next 6 quarters. The company has been well-vetted, having completed in July a reconciliation of SAIC/SAT tax filings verus SEC filings that covered three years (7/1/09-3/31/12), in which their auditor directly confirmed filing data on PRC computers in the state tax offices. Longwei has operated in a shareholder friendly manner, with a track record of rescinding an S-3 two years ago because the CEO (who holds a 33% stake) did not want to raise capital for expansion at depressed market prices that would have reduced shareholder value via dilution. Instead, they took the long road of saving for almost 18 months and plowing profits into an acquisition of a third facility. The company has grown from one facility with 50,000 tons oil storage capacity in 2009 to three facilities and 220,000 tons oil storage capacity in September 2012. LPH CEO has been with the company since its inception 17 years ago. They executed good planning prior to their latest acquisition with having recently rebuilt inventory levels and lock-in advances at refineries, as well as having sales staff on the ground for month at the new facility location, so that when the deal closed, within 15 days they were selling oil product from the new facility, and within 30 days they had 16 major customers who had signed contracts. EPS is expected to grow 70% -- from a trailing 12 months EPS of $0.62, to a TTM EPS of $0.77 by this coming June, and then to an EPS of over $1 by the end of next fiscal year. The company has engaged a new IR firm and has taken steps to provide continuous PR news updates as monthly sales figures become available and as any developments occur.
Major Funds Increasing Emerging Market Allocations [View article]
A good choice for more aggressive overseas funds is to focus on energy stocks with an excellent track record. Small cap overseas oil stocks have much more short term growth potential, but accompanying higher beta. One overseas oil stock with a strong QoQ growth ahead is oil wholesaler Longwei Petroleum (LPH), which closed an acquisition in late September for a new turnkey facility that is expected to provide 70%upside to EPS over the next 6 quarters. The company has been well-vetted, having completed in July a reconciliation of SAIC/SAT tax filings verus SEC filings that covered three years (7/1/09-3/31/12), in which their auditor directly confirmed filing data on PRC computers in the state tax offices. Longwei has operated in a shareholder friendly manner, with a track record of rescinding an S-3 two years ago because the CEO (who holds a 33% stake) did not want to raise capital for expansion at depressed market prices that would have reduced shareholder value via dilution. Instead, they took the long road of saving for almost 18 months and plowing profits into an acquisition of a third facility. The company has grown from one facility with 50,000 tons oil storage capacity in 2009 to three facilities and 220,000 tons oil storage capacity in September 2012. LPH CEO has been with the company since its inception 17 years ago. They executed good planning prior to their latest acquisition with having recently rebuilt inventory levels and lock-in advances at refineries, as well as having sales staff on the ground for month at the new facility location, so that when the deal closed, within 15 days they were selling oil product from the new facility, and within 30 days they had 16 major customers who had signed contracts. EPS is expected to grow from trailing 12 months EPS of $0.62, to an TTM EPS of $0.77 by this coming June, and then to an EPS of over $1 by the end of next fiscal year. The company has engaged a new IR firm and has taken steps to provide continuous PR news updates as monthly sales figures become available and as any developments occur.
Patience When Investing Gets You The Big Candy Bar [View article]
1. fundamentals
2. technicals
3. sector trend
4. market trend
I get into trouble sometimes buying when there is a game changer on fundamentals, yet technicals show the chart is due for a pullback, the sector shows a reversal, or the general market is up too far too fast and due for a pullback. I tend to have trouble scaling into a position in such situations. Buying a full position should be reserved for when all ducks 1 through 4 are lined up and pointing higher - market at a bottom; sector looking promising; technicals show a double bottom is at hand rather than mid-to upper end of 52-week range, and fundamentals show profits are expected to rise.
Baker Hughes: Profitability Analysis [View article]
6 Oil And Gas Stocks Undervalued Compared To The Graham Number [View article]
Renewable Energy Group (REGI), largest independent biodiesel producer in the US. Statistics from E*Trade:
Current P/B = 0.58
Current TTM EPS = 2.662
Current PPS = 6.34
Book value = PPS / (P/B) = 10.93
Graham's Number = 25.59 = SQRT ( 22.5 x 2.662 x 10.93 )
So PPS = 6.34 = 0.25 x 25.59, or a factor of 4 undervalued.
REGI just issued an 8K under the radar on January 8, which projected that the dollar value of the Federal blender tax credit retroactive for 2012 biodiesel sales will equal 1/3 of 2012 gallons sold. One-third of 180 million gallons = $60 million additional revenue, according to the 8K will be booked in this quarter. With 30 million outstanding shares in round numbers, that is $2 added to EPS.
For 2013, assume sales will be AT LEAST 30% higher due to 28% increase in 2013 vs. 2012 federal biodiesel blending mandate, and due to several acquisitions by REGI in 2012. So the blender tax credit for the current year adds another $2.60 to EPS.
GreenHunter Energy (GRH +6.9%) is initiated at Outperform with a $3 target at Boenning & Scattergood, which cites operations in major shale plays led by Appalachia and recent Eagle Ford acquisitions. The firm says revenue and earnings growth will be driven by continued expansion of services in all plays, acquisitions and utilization of assets including SWD and trucking. [View news story]
Bottom line is for the current year EPS should easily attain $4.60 just from the credits, factoring in organic profits if soybean yields are normal will only add more to the bottom line. So FWD P/E is 1.35 here - I see a double or triple in REGI this year.
2 Latin American Plays On An Improving Chinese Economy [View article]
One particular stock with a good upside for this year is REGI, a biodiesel producer. Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago, stating they will receive a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...to be booked during this quarter.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings. With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS during this quarter.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60. That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE. I see a potential TRIPLE in this stock price as this plays out this year.
http://1.usa.gov/11mje52
Natural Gas: Will 2013 Goldilocks Turn Into A Bear? [View article]
Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago without fanfare - wasn't even picked up by Yahoo finance or many other newsfeeds.
In the 8K, REGI stated they expect a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...WOW!
The 2012 blender credits will be realized IN CURRENT QUARTER.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings.
With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS for THE CURRENT QUARTER.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60
That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE.
I see a potential TRIPLE in this stock price as this plays out this year.
http://1.usa.gov/11mje52
Which Oil Services Stock Is The Best Bet For 2013? [View article]
Two things guarantee big profits - (1) Congress has mandated 1.28 billion gallons of biodiesel be purchased and used by diesel producers as blended stock for 2013, up 28% from 2012. (2) On 12/31/2012, congress passed the $1 per gallon blender tax credit for biodiesel for both 2013 sales AND RETROACTIVE for 2012 sales.
REGI filed an 8K two days ago without fanfare - wasn't even picked up by Yahoo finance or many other newsfeeds.
In the 8K, REGI stated they expect a retroactive biodiesel blender 2012 credit -- equal to 1/3 of number gallons sold in 2012...WOW!
The 2012 blender credits will be realized IN CURRENT QUARTER.
Assuming they are on-target for 2012 gallons at around 180 million gallons, that is a whopping $60 million credit all applied to the January to March 2013 earnings.
With a sharecount in round numbers of 30 million, that means about $2 added to quarterly EPS for THE CURRENT QUARTER.
For the remainder of 2013, assume roughly 30% increase in gallons sold (180 x 1.3 = 234 million gallons) x a credit of 1/3 = $78 million, which divided by 30 million shares adds another $2.60 to 2013 EPS. (With the acquisitions that REGI has done and the increase in RFS2 mandate to 1.28 billion gallons from 1.0 billion gallons, that 30% increase should be easily achieved in 2013.)
BASED ON THAT EPS for 2013 should be OVER = $2 (retractive) + $2.60 (new credits) = $4.60
That makes FORWARD P/E better than 1.35 or smaller. A LOT OF ROOM FOR GROWTH HERE.
I see a potential TRIPLE in this stock price as this plays out this year.
http://1.usa.gov/11mje52
Paybacks Are Hell, But Volatility Creates Opportunity [View article]
Fiscal Thursday: To Cliff Or Not To Cliff - That Is The Question [View article]
Fiscal Cliff: Let's Call Their Bluff [View article]
How T. Boone Pickens Led Me To 2 Great Stock Picks [View article]
A Sea Of Opportunities In Japanese Equities [View article]
$LPH, the largest private oil wholesaler in growing industrialized Shanxi province, is poised to capitalize on this growth, having just completed an acquisition of a turnkey oil storage facility that adds 80% to their existing storage capacity and which will add 70% to net income over the next 5 or 6 quarters. The facility was paid for with cash, not via dilution, and there are no stock warrants leftover from a prior (2009) expansion. The CEO has been with the company 17 years since its inception, and understands how to arbitrage oil sales in a climate where price controls change over a 22-day lookback window for crude oil. Between oil demand growth at their 2 existing facilities and sales growth at their newest facility, these two strong catalysts ensure that EPS will keep increasing QoQ and MoM for the foreseeable future. This company has also established legitimacy with their auditor performing a reconciliation of 2009 to 2012 SAIC/SAT tax filings versus SEC filings, including direct observation of tax filings on PRC computers in the state tax office.
Bakken Upgrade And New Ghana Discovery May Rally Hess [View article]
Atlas Pipeline: Pullback On Recent Acquisition And Offering Creates Opportunity [View article]
In contrast, wholesalers and distributors can count on steady customer demand and do not have high overhead and risk from uncertain exploration projects. One overseas oil stock in this category with a strong QoQ growth ahead is oil wholesaler Longwei Petroleum (LPH), which closed an acquisition in late September for a new turnkey facility that is expected to provide 70% upside to EPS over the next 6 quarters. The company has been well-vetted, having completed in July a reconciliation of SAIC/SAT tax filings verus SEC filings that covered three years (7/1/09-3/31/12), in which their auditor directly confirmed filing data on PRC computers in the state tax offices. Longwei has operated in a shareholder friendly manner, with a track record of rescinding an S-3 two years ago because the CEO (who holds a 33% stake) did not want to raise capital for expansion at depressed market prices that would have reduced shareholder value via dilution. Instead, they took the long road of saving for almost 18 months and plowing profits into an acquisition of a third facility. The company has grown from one facility with 50,000 tons oil storage capacity in 2009 to three facilities and 220,000 tons oil storage capacity in September 2012. LPH CEO has been with the company since its inception 17 years ago. They executed good planning prior to their latest acquisition with having recently rebuilt inventory levels and lock-in advances at refineries, as well as having sales staff on the ground for month at the new facility location, so that when the deal closed, within 15 days they were selling oil product from the new facility, and within 30 days they had 16 major customers who had signed contracts. EPS is expected to grow 70% -- from a trailing 12 months EPS of $0.62, to a TTM EPS of $0.77 by this coming June, and then to an EPS of over $1 by the end of next fiscal year. The company has engaged a new IR firm and has taken steps to provide continuous PR news updates as monthly sales figures become available and as any developments occur.
Major Funds Increasing Emerging Market Allocations [View article]