A few weeks back, I penned an article questioning Chesapeake Energy’s (CHK) management and their ability to deliver value for shareholders, despite amassing a wealth of assets. While these doubts do not preclude me from holding my long position in CHK preferred D shares, I hesitate to add to my position, as CHK already comprises [...]
Bloomberg carries this story about Petrobras (PBR) possibly delaying their huge $25B share sale (17% of current market cap) to fund exploitation of some promising deepwater prospects off the shore of Brazil. Unfortunately for them, the recent global market slide has dropped PBR 15% and is endangering the transaction. Comparing PBR’s one-month chart to the [...]
Following on last post’s observation of the implications of an economic recovery taking hold, I present readers with a trio of intriguing stories from the Wall Street Journal. First, EOG Resources (EOG) announced a change in focus as it seeks to apply new horizontal drilling techniques to search for oil. Despite the company’s assertion that [...]
THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET Enlightened-American Portfolio: -2.3% through Jan, 2010 (my actual IRR, including cash balance) DJIA: -3.5% Nasdaq: -5.4% S&P 500: -3.7% DJ Wilshire 5000: -3.5% Russell 2000 (smallcap): -5.1% Our portfolio outpaced all major indices thus far out of the gate in 2010. As always, this outperformance can not be attributed to any [...]
Today’s FT ran an analysis piece with the sardonic headline “Back To Petroleum”, making reference to BP’s attempt to rebrand themselves as “Beyond Petroleum.” While the main thrust of the article deals with BP’s waffling on its alternative energy commitment, the sections that most intrigued me were some of the analyst statements quoted in the [...]
Long-time readers know my bullish views toward the energy sector. In the past, I’ve counselled against using weekly inventory numbers in considering long-term investments in the space and today’s bullish inventory numbers, while propelling a nice rally in the energy names, is no different. The case for energy scarcity does not pivot on how much oil [...]
