Linn Energy Faces Yet Another Bear Attack [View article]
As I understand the accounting discussion, it relates to a timing issue: should the cost of a purchased "put" (hedge) be deducted against earnings when the put is bought, or spread out over the lifetime of the put.
When a company has a consistent strategy of buying long term puts each year, I'm not it makes much of a net difference whether the company deducts 100% on one put in a year, or 20% each on five puts.
The first time Barron's published the article, I thought it was newsworthy. However, there seems to be little new information in their recent follow-up.
"It's the entire basis of your article but barely any mention as to why, other than "he's from Intel". Elaborate!"
Ashraf may or may not be proved right, but I think he did say why:
"Intel is a unique company in this industry - it controls the world's most advanced (and arguably agile) semiconductor factory network "
"it is clear that the selective, high margin foundry business will be a source of growth and steady income going forward. This levers Intel to the broader semiconductor market in a way that making PC chips, server chips, and even mobile processors doesn't.
"The best choice for the job of overseeing Intel's next big growth area is Brian Krzanich, the person who successfully led the manufacturing group for years."
Weekend Developments: Signal And Noise [View article]
"That in private moments the French Socialists are critical of Germany and Merkel is a dog bites man story, even if the Financial Times thought it worthy of front page coverage over the weekend."
The English are fomenting trouble between the Germans and French? Who would have thought that possible?
Newfield Exploration Surges After Results [View article]
Bottom line is up ... top line is up ... time to buy.
Perhaps it is that simple, but for the sake of completeness I think it would be worth mentioning that the same issues that bedevil Chesapeake and Sandridge are also present here.
I'm talking about high levels of existing debt, taking on significant debt to fund drilling programs, current low prices for natural gas and nat gas liquids, asset write downs, high product transportation costs and the recording of interest payments as assets instead of costs. (While that recording practice is fully acceptable to government, it is still something investors should keep in mind.)
This may well be a good trade, but I don't see it as along term investment.
Molycorp: Are Debt Covenants The 'Smoking Gun?' [View article]
All these determinations are estimates within management's reasonable discretion. Personally, I think the reverse is more likely: they estimated the net assets and then sized the new debt accordingly.
In any event, it's a story stock, that a crappy past will blossom into a bright future as soon as shortages occur. You either like the story - or you don't.
How Does Monish Pabrai's Position In Chesapeake Energy Qualify As 'Dhandho' Investing? [View article]
"3) Thanks to Carl Icahn and Southwestern, CHK has one of the best boards in America, including Archie Dunham and Lou Simpson. And of course Icahn and Southwestern helping guide to shareholder value. Heck, Icahn could personally lend them 10B if it came to that."
Icahn and Southeastern (not Southwestern) owned their shares before Chesapeake crashed and burned.
If this was really one of the best boards, would all these trouble have befallen Chesapeake?
Why Reinhart And Rogoff Still Matter [View article]
Linn Energy Faces Yet Another Bear Attack [View article]
Does your bookie advise you to stay away from all MLPs and REITs, or just this one?
Why Reinhart And Rogoff Still Matter [View article]
Linn Energy Faces Yet Another Bear Attack [View article]
Or being more discriminating about what we accept as true ...
Linn Energy Faces Yet Another Bear Attack [View article]
When a company has a consistent strategy of buying long term puts each year, I'm not it makes much of a net difference whether the company deducts 100% on one put in a year, or 20% each on five puts.
The first time Barron's published the article, I thought it was newsworthy. However, there seems to be little new information in their recent follow-up.
Chesapeake Sells Another Marcellus Package At Low Valuation: Transaction Analysis [View article]
Soon they will run out of things to sell ...
Intel Makes The Right CEO Choice [View article]
Ashraf may or may not be proved right, but I think he did say why:
"Intel is a unique company in this industry - it controls the world's most advanced (and arguably agile) semiconductor factory network "
"it is clear that the selective, high margin foundry business will be a source of growth and steady income going forward. This levers Intel to the broader semiconductor market in a way that making PC chips, server chips, and even mobile processors doesn't.
"The best choice for the job of overseeing Intel's next big growth area is Brian Krzanich, the person who successfully led the manufacturing group for years."
What Happens When You Sell An MLP? [View article]
Weekend Developments: Signal And Noise [View article]
The English are fomenting trouble between the Germans and French? Who would have thought that possible?
Newfield Exploration Surges After Results [View article]
Perhaps it is that simple, but for the sake of completeness I think it would be worth mentioning that the same issues that bedevil Chesapeake and Sandridge are also present here.
I'm talking about high levels of existing debt, taking on significant debt to fund drilling programs, current low prices for natural gas and nat gas liquids, asset write downs, high product transportation costs and the recording of interest payments as assets instead of costs. (While that recording practice is fully acceptable to government, it is still something investors should keep in mind.)
This may well be a good trade, but I don't see it as along term investment.
Molycorp: Are Debt Covenants The 'Smoking Gun?' [View article]
In any event, it's a story stock, that a crappy past will blossom into a bright future as soon as shortages occur. You either like the story - or you don't.
Stock Market Triple Fantasy [View article]
*pedal
(Think cars, not flowers.)
How Does Monish Pabrai's Position In Chesapeake Energy Qualify As 'Dhandho' Investing? [View article]
Icahn and Southeastern (not Southwestern) owned their shares before Chesapeake crashed and burned.
If this was really one of the best boards, would all these trouble have befallen Chesapeake?
9 NYSE International 100 Dogs Hunt 6.5% To 24.7% Net Gains In April [View article]
Microsoft And The Windows 8 Conundrum [View article]
Microsoft is definitely not a "hot" company, but is "hotness" a necessary condition for a consumer facing tech company to survive and thrive?
If it is, who will replace Microsoft, Apple and Google?