COP is taking a big position in Lukoil. do you really trust the Russians? I mean, right now they are giving the shaft to Shell and Exxon in the Sakhlin Islands. What makes Mulva so sure they won't do the same to COP?
Difference, Russian gov't is screwing Shell and Exxon.
COP is buying (and has been for a "long" time now) into a russian company. If Russian gov't wants to screw COP, they have to screw LUK and even a 20% COP ownership, LUK is 80% Russian.
Now COULD Russia (gov't) or Putin, find a way to screw COP on the LUK deal. Yep, sure could. But fallout for doing that would be much greater than from the RD/XOM issue.
A simplistic (and not completely accurate but good enough) way to look at is this. Putin feels that XOM/RD are taking from Russia due to the good deals they extracted in the past when they held the upper negotiating hand. COP otoh, is investing in Russia via LUK not taking from them.
If you're looking for perfection you won't find it. There is always a wart or two. Buying when the coast is clear will lose you money every time.
The problems presented by Russia are minor placed in proper historical perspective. The oil industry has seen worse. Russia cannot survive without markets for its oil, so it has to work with the the EU, USA, Japan, so there are limits to the games it can play.
About the only thing relevant from the latest dust up is less oil investment will be flowing to Russia in the future restricting supply in an already tight market.
Russia is the lesser of all the evils. Venezuela snatching everything back. mideast has their issues. In Nigeria, angry militants are trying to kidnap oil company folks and trying to stop production.
Vladimir Putin tends to be good to people who treat him (and of course his country) good and more importantly with respect. JJ and company have been treating them very right. Of course in the long run anything is possible, but in the near term it's smooth sailing for COP as it rides that big bear.
Waterdog, try a message board for RNE. It's pretty good for investors interested in Russia/Central Europe markets.
TRF is the oldest US fund investing in Russia. I never had a stake it it so I can't really comment about it.
I have 600 MTL shares. Very happy with it. I'll buy more if the stock goes under $30. They have a nice div of about $1.5, paid annually. You have to get in before the end of May if you are interested in it.
I sold my holdings in MBT at $57 after my investmet doubled. I wish I bought back in when MBT was trading at $48-49 during recent weakness...
I love COP due, in part, to it's exposure to Russia. Russia is a growth story. That gives a nice kick to COP.
Thanks for your message. I'll look into all of your suggestions.
Currently my largest holding is SGG, a German company into high-tech materials. They've recently announced that they will voluntarily delist from the NYSE to avoid fee and regulations. If anything, since making this announcement, share prices have gone up. I'll still be able to trade my shares OTC. I'm also doing very well SPWR, a solar energy company owned by Cypress Semiconductor.
Thanks again for your info.