African success is inevitable. Just so many places left in the world where opportunity still abounds. Multinational back doors are a safer way to enter a large continent where infrastructure, governmental ineptitude and corruption make for a difficult obstacle course.
disc.: long SSL, STO, VOD, FTE companies with challenges in a market place fecund with opportunity.
Norwegian Prime Minister Jens Stoltenberg, up for re-election in September, proposes a tax increase on oil companies and multinationals, a move the industry warns could undermine Norway’s reputation as a stable environment for oil company investments. Statoil (STO) complains the plan would reduce the attractiveness of future projects, particularly marginal fields. STO -1.8% premarket. [View news story]
Pampering the parasites, pauperizing the producers. Governments never learn.
Good things come to all who are patience...and/or wise enough to know when to exit too. COP is a keeper. I am satisfied with divy's given restructuring and long term plan.
By the way, nice analysis Tim. Must be nice to be both young AND smart! Great job!
I agree with you completely. AT&T has gone through many permutations, sometimes they make consummately unwise steps and misjudgments (T-Mobile), but they always seem to get over. SouthWestern Bell and to a lesser degree BellSouth is who we are looking at when we see T today. SWB under Whitiker had the right stuff.
I'm holding T, and if it dips significantly, guess what, I'm adding more.
3 Reasons Why Vodafone Is A Better Buy Than Verizon [View article]
Has VOD management even intimated what markets they might want to expand into given the loss of VZ wireless payments? The global landscape in Europe for telecoms is flat - and is going stay that way for a considerable ammount of time. VOD sold out of China Telecom, and we all know about the Indian (Essar Ltd.) debacle vis-a-vis taxes. They like Germany, but even they are slowing down economically, and how much money can they make moving in cable (bundling of services) in Continental Europe really?
Is Africa a target? France Telcom is big here along with South African low-cost firm...so where is VOD going deploy this cash to reap as profitable and secure growing harvest as VZ Wireless?
Troubling times really when you consider VOD's managements historical missteps, they remind me of a cash rich young 'adult' as an imprudent inheritor of a sizeable and complex estate.
Vodafone (VOD) wants $130B from Verizon (VZ) for its 45% stake in Verizon Wireless, the WSJ reports. The paper notes Verizon, which has reportedly been eying an initial bid of $100B, seems to be using a PR campaign - promising Verizon can finance the deal, insisting Vodafone's tax bill will be small, etc. - to bring a reluctant Vodafone to the negotiating table. Sources claim no formal offer has been made by Verizon yet. (Jefferies) [View news story]
I agree with your thoughts Mr. Gordon, however the thought has crossed my mind that VOD may not want to perpetuate what could be less than a friendly business relationship...
Vodafone's (VOD +0.2%) dividend (5.1% yield) isn't dependent on the huge cash distributions it receives for its 45% stake in Verizon Wireless, insists CFO Andy Halford. "The amount of cash we generate at the moment is a little higher than the dividend that we pay out," he claims. Halford didn't provide fresh details on Vodafone's plans for the stake in light of Verizon's strong interest in buying it (and ending the distributions). Meanwhile, Vodafone has launched Red, a giant pan-European ad campaign touting its data services and unlimited voice/text packages, and seen as an effort to combat the threat posed by VoIP and Web messaging services. [View news story]
I agree 100 percent Esekla with your analysis.
That is why I'm concerned (potential VZ Wireless sale), because I'm not too impressed with VOD's management across time.
Total SA: A High-Yielding Oil And Gas Stock Strengthening Its Presence In Qatar [View article]
Nice follow-up Heather.
Total SA is one of the world largest integrated oil companies. It pays a solid dividend, and I thankfully write down all these Euro-taxes quite legally as a percentage of my own foreign dividend accumulation(s) on Form 1066 provided by the IRS.
Total in the 40's (ADR pricing) still represents an excellent long term investment regardless of M. Hollande and his confiscatory tax scheme to keep France afloat through the debt crisis. Replacement ratio is good, FCF is good, debt is controled, and this stock is globally and economically diversified. If you are a oil and gas investor it is hard to turn away from Total.
Do your own "dd" and remember even our domestic giants XOM, CVX and to a lesser degree COP have considerable international footprints. We do afterall live and function in an integrated and co-dependent international world - certainly economically.
General Electric: The Hazards Of A Perfect Stock Even After Solid Earnings [View article]
Hi RS:
GE like any mega equity has its plus and minus column. The question for an investor I suppose is what are your expectations are.
I have been a long time GE holder, I suppose it qualifies as a core holding as a percentage of my portfolio. That said, my cost basis must on average be in and around $28/share approximately. I rode out the drop to $5, but didn't have the courage to scoop up more - a regret that was a valuable learning experience in and of itself. For a year or so I have begun DRIPing again.
But, like management or not this behemoth is well position to take positive advantage of an eventual and yes inevitable, (isn't that why we are all investors - we actually see beyond "doom and gloom", right?) domestic and international recovery. The global recovery has been painful, in Europe it is very painful to put it respectfully, and in the US it has been actually been shocking slow...but, if you believe in a future of reasonable growth then GE is going to a significant player by sheer dint of its economic prowess, and prices in the 20's will be the new "Wow" story of "...sure wish I'd gotten in then!" of the future...
Just consider the value of a dollar presently, and then think of this giant at and around one Jackson...really! It may not be "perfect", but tell me what is??!!
ConocoPhillips: Cashing In On The Eagle Ford Shale [View article]
Thank you Micheal for another excellent follow-up.
You are not only correct about COP's short and long term prognosis, but you are assuredly right about Washington. To say that we have no coherent national energy policy is put it mildly and very politely; this administration just encapsulates the broader dysfunctional behavior we see in the federal government in so many vital areas that need enlightened self-interest, and a positive "America First" outlook and practice. This means domestic and international economic positions that are devoid of SuperPAC's and international cabal's masquerading as policy institutes and objective "think tanks".
We don't have to be "isolationist" or "xenophobic" or even "Ayn Rand(ish)" in total to have accelerated and pragmatic growth of our (proven) energy resources by both federal and state governments.
So what's to do with a world that's not going to change anytime soon...first your own due diligence I believe...and then buy (more) COP at every reasonable dip & opportunity. By the way these mission critical figures are fascinating, I wonder how STO stacks up in comparison? Subject possibly of another prescient observation on your part, possibly?
Again, thank you for your continuing contributions.
5 Bakken Oil Plays For Your Portfolio [View article]
Nice article Michael.
I agree with several points you made. Most notably Whiting (http://bit.ly/LLKVdP), they would make an excellent acquisition target for several oil majors: XOM, STO, and, possibly COP.
I do not own Whiting, but see it as a natural fit for the above mentioned companies given the acreage, below ground resources, and the forward looking business plans of these firms seeking to insure a stable and more predictable (if not 'pro-growth' per se) business environment. These ideas had been advanced before on SA with regards to STO, but, alas, nothing materialized as the premium might be too large for a 'small(er)' major to swallow.
Alaska lawmakers on Sunday gave final approval to a bill backed by top North Slope producers Conoco (COP), BP and Exxon (XOM) to slash state oil production taxes, doing away with a methodology that increases tax rates as oil prices rise. Supporters say the cut will set the stage for future growth as Alaska tries to reverse declining oil output; critics say it will severely damage the state's finances. [View news story]
Alaska can possibly move forward economically now that Sarah Palin is gone from the State house.
Demagogues..."what are they good for, absolutely nothing".
Oil and gas are Alaskan lifeblood economically. And, did I fail to mention...how 'bout an economic policy that dares to put America First and nudge us closer to lack of dependence on overseas crude.
Exxon Mobil (XOM) says CEO Rex Tillerson’s total compensation reached $40.2M last year, up 15% Y/Y, with much of the increase due to a change in pension value and other deferred compensation earnings. Tillerson's salary rose to $2.5M from $2.4M; effective Jan. 1, his salary increased to $2.7M. [View news story]
The Great Sub-Saharan Opportunity [View article]
disc.: long SSL, STO, VOD, FTE companies with challenges in a market place fecund with opportunity.
Norwegian Prime Minister Jens Stoltenberg, up for re-election in September, proposes a tax increase on oil companies and multinationals, a move the industry warns could undermine Norway’s reputation as a stable environment for oil company investments. Statoil (STO) complains the plan would reduce the attractiveness of future projects, particularly marginal fields. STO -1.8% premarket. [View news story]
What's Up With Conoco's Dividend? [View article]
By the way, nice analysis Tim. Must be nice to be both young AND smart! Great job!
disc.: accumulating under $60 (dips).
AT&T's Latest Improvements Unleashing Growth [View article]
I agree with you completely. AT&T has gone through many permutations, sometimes they make consummately unwise steps and misjudgments (T-Mobile), but they always seem to get over. SouthWestern Bell and to a lesser degree BellSouth is who we are looking at when we see T today. SWB under Whitiker had the right stuff.
I'm holding T, and if it dips significantly, guess what, I'm adding more.
disc.: Long T.
3 Reasons Why Vodafone Is A Better Buy Than Verizon [View article]
Is Africa a target? France Telcom is big here along with South African low-cost firm...so where is VOD going deploy this cash to reap as profitable and secure growing harvest as VZ Wireless?
Troubling times really when you consider VOD's managements historical missteps, they remind me of a cash rich young 'adult' as an imprudent inheritor of a sizeable and complex estate.
Ideas, SA community, please.
disc.: long VOD, but wary...
Vodafone (VOD) wants $130B from Verizon (VZ) for its 45% stake in Verizon Wireless, the WSJ reports. The paper notes Verizon, which has reportedly been eying an initial bid of $100B, seems to be using a PR campaign - promising Verizon can finance the deal, insisting Vodafone's tax bill will be small, etc. - to bring a reluctant Vodafone to the negotiating table. Sources claim no formal offer has been made by Verizon yet. (Jefferies) [View news story]
Vodafone's (VOD +0.2%) dividend (5.1% yield) isn't dependent on the huge cash distributions it receives for its 45% stake in Verizon Wireless, insists CFO Andy Halford. "The amount of cash we generate at the moment is a little higher than the dividend that we pay out," he claims. Halford didn't provide fresh details on Vodafone's plans for the stake in light of Verizon's strong interest in buying it (and ending the distributions). Meanwhile, Vodafone has launched Red, a giant pan-European ad campaign touting its data services and unlimited voice/text packages, and seen as an effort to combat the threat posed by VoIP and Web messaging services. [View news story]
That is why I'm concerned (potential VZ Wireless sale), because I'm not too impressed with VOD's management across time.
GDF Suez Is Still A Good Long-Term Play With A Price Target Of $25 [View article]
I too remain long GDFZY, though not accumulating at the moment unless under $20 and dry powder available.
Total SA: A High-Yielding Oil And Gas Stock Strengthening Its Presence In Qatar [View article]
Total SA is one of the world largest integrated oil companies. It pays a solid dividend, and I thankfully write down all these Euro-taxes quite legally as a percentage of my own foreign dividend accumulation(s) on Form 1066 provided by the IRS.
Total in the 40's (ADR pricing) still represents an excellent long term investment regardless of M. Hollande and his confiscatory tax scheme to keep France afloat through the debt crisis. Replacement ratio is good, FCF is good, debt is controled, and this stock is globally and economically diversified. If you are a oil and gas investor it is hard to turn away from Total.
Do your own "dd" and remember even our domestic giants XOM, CVX and to a lesser degree COP have considerable international footprints. We do afterall live and function in an integrated and co-dependent international world - certainly economically.
disc.: long TOT
General Electric: The Hazards Of A Perfect Stock Even After Solid Earnings [View article]
GE like any mega equity has its plus and minus column. The question for an investor I suppose is what are your expectations are.
I have been a long time GE holder, I suppose it qualifies as a core holding as a percentage of my portfolio. That said, my cost basis must on average be in and around $28/share approximately. I rode out the drop to $5, but didn't have the courage to scoop up more - a regret that was a valuable learning experience in and of itself. For a year or so I have begun DRIPing again.
But, like management or not this behemoth is well position to take positive advantage of an eventual and yes inevitable, (isn't that why we are all investors - we actually see beyond "doom and gloom", right?) domestic and international recovery. The global recovery has been painful, in Europe it is very painful to put it respectfully, and in the US it has been actually been shocking slow...but, if you believe in a future of reasonable growth then GE is going to a significant player by sheer dint of its economic prowess, and prices in the 20's will be the new "Wow" story of "...sure wish I'd gotten in then!" of the future...
Just consider the value of a dollar presently, and then think of this giant at and around one Jackson...really! It may not be "perfect", but tell me what is??!!
disc.: long GE and Drippin' if not rippin'...
ConocoPhillips: Cashing In On The Eagle Ford Shale [View article]
You are not only correct about COP's short and long term prognosis, but you are assuredly right about Washington. To say that we have no coherent national energy policy is put it mildly and very politely; this administration just encapsulates the broader dysfunctional behavior we see in the federal government in so many vital areas that need enlightened self-interest, and a positive "America First" outlook and practice. This means domestic and international economic positions that are devoid of SuperPAC's and international cabal's masquerading as policy institutes and objective "think tanks".
We don't have to be "isolationist" or "xenophobic" or even "Ayn Rand(ish)" in total to have accelerated and pragmatic growth of our (proven) energy resources by both federal and state governments.
So what's to do with a world that's not going to change anytime soon...first your own due diligence I believe...and then buy (more) COP at every reasonable dip & opportunity. By the way these mission critical figures are fascinating, I wonder how STO stacks up in comparison? Subject possibly of another prescient observation on your part, possibly?
Again, thank you for your continuing contributions.
disc.: long COP.
5 Bakken Oil Plays For Your Portfolio [View article]
I agree with several points you made. Most notably Whiting (http://bit.ly/LLKVdP), they would make an excellent acquisition target for several oil majors: XOM, STO, and, possibly COP.
I do not own Whiting, but see it as a natural fit for the above mentioned companies given the acreage, below ground resources, and the forward looking business plans of these firms seeking to insure a stable and more predictable (if not 'pro-growth' per se) business environment. These ideas had been advanced before on SA with regards to STO, but, alas, nothing materialized as the premium might be too large for a 'small(er)' major to swallow.
long: XOM, COP, STO
Alaska lawmakers on Sunday gave final approval to a bill backed by top North Slope producers Conoco (COP), BP and Exxon (XOM) to slash state oil production taxes, doing away with a methodology that increases tax rates as oil prices rise. Supporters say the cut will set the stage for future growth as Alaska tries to reverse declining oil output; critics say it will severely damage the state's finances. [View news story]
Demagogues..."what are they good for, absolutely nothing".
Oil and gas are Alaskan lifeblood economically. And, did I fail to mention...how 'bout an economic policy that dares to put America First and nudge us closer to lack of dependence on overseas crude.
Exxon Mobil (XOM) says CEO Rex Tillerson’s total compensation reached $40.2M last year, up 15% Y/Y, with much of the increase due to a change in pension value and other deferred compensation earnings. Tillerson's salary rose to $2.5M from $2.4M; effective Jan. 1, his salary increased to $2.7M. [View news story]
AT&T: 14% Return Year To Date, Now What? [View article]
The broader question is, however; does that warrant selling or just (continuing) going long?