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Hess Corporation Message Board

  • lacarbuyer lacarbuyer Sep 23, 2011 2:51 PM Flag

    looks like a buy here at $51.25

    ceo paid $57.17 on 9/12/11 for $10 million worth of shares seems like not a bad place to start to dip my toe in the well any thoughts

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    • It is hard not to like HES in here, trading near book with expansion in volumes + very high pay potential in Ghana; monetizing Australia and succesful Bakken exploitation. Credit Suisse and Barclays have $100+ targets. If one reads the tea leaves, HES must be confident of ongoing plays to lever up to buy Utica properties + the "insider" buy of John Hess. The other side of the coin is that the European problems and a potential economic implosion may trump the success of HES. An interesting interview with John Taylor (runs the $8.5 billion FX Concepts which mostly trades currency and has been spot on in viewing the markets, the Euro and the U.S.'s economic woes) in this weekend's Barron's. Taylor is positive on commodity-based currencies and feels oil is a solid long-term bet on the next growth cycle. In five years, he says, "we could see oil at $500 a barrel. I would be a buyer on dips of oil."

      The problem for investors is how will the macro implosion affect worldwide growth and both stock prices and the price of oil. Do you load up now? For me I am taking a very cautious view of the market and holding a significant position in HES and acquiring some DVN. I will place this at the back of the portfolio and acquire more in stages on the downside. I am looking for a 3+ year hold and look to the pricing of both HES and DVN during the crisis of 2008 to offer some (hopeful) support. Overall we may see a collapse of the overall market and commodities. This collapse will curtail drilling and push out the marginal producers. In the meantime, take-away infrastucture in the Bakken will improve and the gap between Brent crude and WTI will close. It is a very scary time and HES may be a great stock in a very ugly stock market. If we get stabilization in the near term you may see HES move up at $3 intervals. If Europe implodes you may see the same on the downside. Interesting times and I wish everyone luck...

      • 1 Reply to wist2000
      • I've been considering Hess given its current valuation, however its chart has me concerned. In the past three years it's failed to stay above its 2008 crash level. It thus has significantly underperformed the S&P 500 which itself hasn't performed that well. The duration of this underperformance would seem to indicate the co. has some significant problems. Have these issues been resolved? I appreciate any insight that can be given.

    • A forty percent drop,since july.

    • Agreed, I'm in and picked up some APA as well.

56.67-0.14(-0.25%)Aug 26 4:02 PMEDT