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Matsebula

Matsebula
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  • Keystone approval could be "light bulb moment" for investing in Canada [View news story]
    @Blue22 is right. Maybe if the US is concerned about the aquifer it should stop subsidizing corn crops for the purpose of making ethanol. I am amazed at the misinformation some people are trying to pass off. All the filings are public, so go read them. The supplemental EIS is public, go read it. For those who wonder why the US would take Canadian oil for export, rethink your position. A TransCanada media guy described it like this:

    "CALGARY, Alb. — I would like to respond to several of Jude Isabella’s factually inaccurate remarks about TransCanada and the Keystone XL Pipeline project (“A Canadian warns Americans about tar sands oil,” Page A4, Aug. 21).

    Isabella incorrectly states that crude oil will be transported by Keystone XL to Texas refineries “for shipment to Asia.” This myth simply does not hold any water whatsoever. The United States is an overwhelming importer of crude oil, consuming nearly 7million barrels of foreign crude oil a day.

    The crude oil coming from Venezuela and the Middle East is more expensive than the Canadian and North Dakotan crude oil Keystone XL will safely transport.

    It makes no sense for refiners who have signed 18-20 year commitments to buy cheaper domestically produced oil, pay additional shipping fees to “ship it to Asia” while still importing 7 million barrels a day of higher-priced oil.

    To continue her Star Wars analogy, that would be like the Ewoks importing trees from the ice planet of Hoth to make tree-houses while selling their own trees from Endor for a discount on Tatooinee." James Millar, TransCanada
    Apr 4 04:39 PM | 3 Likes Like |Link to Comment
  • The Sell Off In Penn West Is A Buying Opportunity [View article]
    Here on the ground in Cowtown, PWE is having a hard time. If you know any engineers or geologists that want work, PWE will take them, because theirs are leaving. Selling off assets and getting into different plays is long term, not short term, so explains why the company will take time to sort itself out. Assets equal future profits, so why would selling be a good thing?

    For more of the same, look at Talisman. Hal Kvisle is a pretty smart dude, but they are selling assets and cutting employees to make their changes. Change in the patch nearly requires amputation, and takes lots of time. Getting your asset mix wrong or misreading the economy is hard to reverse. Very expensive.

    In my view, there are other companies like MEG, CNRL, or Suncor would represent much better value.
    Nov 8 10:11 PM | 4 Likes Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    Helix, these are all of the things I heard on the call as well. I think you did a good job of making all the inferences that were there to make. Nice article.
    Jan 25 02:40 PM | 1 Like Like |Link to Comment
  • Apple: The Ultimate Value Play At $520 [View article]
    Bill, why not offer some reasoning to add to the debate? His perspective does something to show the standard AAPL is being held to, which is pretty lofty considering the cash/profit it generates.

    I seem to recall AAPL trading within around the 15 P/E range, which is what the author is using to compare with WMT. Last time it traded at such a low PE it had less cash and that was in 2008. So now, if you look at PE ex-cash, it is an even better buy than it would have been then.
    Jan 11 02:39 PM | 3 Likes Like |Link to Comment
  • "Despite the popularity of cheap smartphones, this will never be the future of Apple’s (AAPL -0.1%) products," says SVP Phil Schiller in an interview with a Chinese paper. He adds that in "every product that Apple creates, we consider using only the best technology available." The remarks throw cold water on reports of a cheaper iPhone featuring less costly materials, and particularly on a Bloomberg report that Apple is considering retail prices of just $99-$149 for the device. Update: The interview's text has been significantly revised[View news story]
    People want easy to use, smooth interface, etc. The average person cares less about what is under the hood as long as doing what they want to do is simple and smooth. And, the design is very appealing.

    I used to think Apple was about cool. Not anymore. USAF pilots don't care about cool, they just want their flight manuals, which are now on iPads.
    Jan 10 05:00 PM | 4 Likes Like |Link to Comment
  • Apple's Cash Hoard Is An Asset, Not A Liability [View article]
    Adam, your point is taken, and apologies if my tone was off.

    What comes to mind is Ray Kroc asking a bunch of B-school students what business they thought McDonald's was in. They figured burgers, but he said "land."

    Strategies evolve. Maybe we will look back at this period as the time when AAPL made a big shift in its strategy. It has been a fluid business for a long time. If they wait a year or two they could BUY Microsoft. Whole. Might never happen, but it could...

    I get that people want them to use the cash to stimulate share price. That is a pretty short-term use, in my opinion. My guess is that the potential use for that cash is being held deep in the vault somewhere and that it will be surprising when we see it.

    Thought provoking article.
    Jan 10 04:37 PM | Likes Like |Link to Comment
  • How Long Can Lockheed Martin Keep The Yield Up? [View article]
    @Jon, the advantage of the carrier group is beginning to erode. The Chinese just broadcast a successful carrier landing. It may take a while, but the game is changing. For the US to maintain hegemony (long term) will become increasingly difficult. Even here in Canada the Navy is starting to become front and center.

    Unmanned platforms are the future, IMO. Re spending there are a lot of legacy systems that cost a lot of money to maintain. Accelerating the cycle of disposal is pretty critical too.

    Just my $.02, I am also not a defence expert.
    Jan 10 01:14 PM | Likes Like |Link to Comment
  • How Long Can Lockheed Martin Keep The Yield Up? [View article]
    Interesting article, Dana. I enjoyed it.

    Military tech is a pretty quick-changing area, but the name of the game is who multiplies force the most. Drones are an awfully good bet, as are sensors and anything that contributes to better decision making and more efficient application of force.

    Reading up on defense doctrine and strategy isn't for everyone, but if you want to know where things are going it is essential.
    Jan 7 06:43 PM | Likes Like |Link to Comment
  • Apple's Cash Hoard Is An Asset, Not A Liability [View article]
    It is hard to know you are actually serious Adam, when you say that:

    "There's clearly no way to profitably invest $100B"

    Seems to me that the profit shows up in quarterly reports as 'other income' or something very close to that.
    Jan 7 01:53 PM | Likes Like |Link to Comment
  • Apple's Achilles' Heel: Samsung Has An Arrow Pointed Straight At It [View article]
    So Apple got where it is not being a 'market share' company, and now you think it should worry about market share??? The giant pile of cash should convince you of the silliness of that perspective if nothing else does. No debt, gobs of cash, Christmas, blue sky opportunity in China and India. Market share might drop, but as long as there is an incremental increase in purchasers the net result is increased operating profit at 40+% margin. Which, with zero debt translates into better bottom line results than it might at say, Samsung, which has about a 12.5% debt to equity ratio. Groan.
    Dec 12 06:44 PM | Likes Like |Link to Comment
  • Apple (AAPL +3.1%) has bounced to $546 with the help of positive analyst commentary. While Morgan Stanley talks up potential iTV interest, JPMorgan is raising its forecast for Q4 AT&T (T) iPhone activations to 8M from 7M. Also, ISI's Brian Marshall is expecting a strong Chinese iPhone 5 launch - China Unicom (CHU) just announced its pre-orders have topped 300K. (Apple Monitor[View news story]
    Wait for it, Chicken Little. Yeesh.
    Dec 11 01:23 PM | 3 Likes Like |Link to Comment
  • How Much Is Apple's Lack Of Debt Worth? [View article]
    Debt also introduces the potential for failure and the need to manage the company very tightly. This is a benefit. Having tons of cash around makes people feel secure, but having $120B around not employed in a gainful way is difficult to take. Perhaps Mr. Jobs thought it would be great to have a war chest to sue people with.

    As for IRR, look at the financial statements and find income from other sources. They invest it and make money too.
    Dec 7 03:03 PM | Likes Like |Link to Comment
  • Apple's Margin Hike Sell-Off: Should You Care? [View article]
    Purchasing power, anyone.
    Dec 6 11:18 AM | Likes Like |Link to Comment
  • Apple's Margin Hike Sell-Off: Should You Care? [View article]
    No kidding. Just look up high frequency trading. Those trades are lucky to take one second, let alone multiple seconds. High-volume, lots of fractions of cents, and lots of money made. Just one article of several.

    http://nyti.ms/TR7Gix
    Dec 5 04:10 PM | 1 Like Like |Link to Comment
  • Apple: Bottom Target Hit, And New All-Time Highs Coming [View article]
    Sometimes the right answer is patience. You are making the assumption, I think, that I bought at $700+. Which is the wrong assumption. On other holdings, I do sell calls, but AAPL is a bit too rich for me just yet for that.

    I don't know where my other comment went, but I will check in with you in January to let you know how my faulty "homework" has turned out.

    Out.
    Nov 30 12:50 AM | Likes Like |Link to Comment
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