Looks like the bulls will be pounding the table again today.
Does that negative $1.05 consensus include the one-dollar per share that they claim they will pay as a dividend? Will they borrow that dollar per share or dip into whatever meager cash position that remains? Either way it will put in nice dent in their "clean balance sheet."
The fundamentals are being ignored. There's way too much risk here for me to do anything but sit on the sidelines and watch. I don't want to be in competition with the fixers.
Please fix your email servers. Please stop deliberately slowing down my windows 8.1 box in your attempts to get me to think I need windows 10. A once great and innovative company has gone down the "planned obsolescence" road. Detroit never came back after the 1970's. The same thing could happen in Seattle.
Sentiment: Strong Sell
The entire oil patch is suspect at this point. The latest run up in stock prices reflects panic buying on Wall Street. The big boys are in fear of the oil companies going belly up and therefore being unable to pay off the huge loans that were taken out to finance shale drilling. The big banks don't want to have to write off these loans so they are bidding up the stock to help keep the companies solvent.
Yo-Yo Ma plays the cello. But props for the metaphor.
I've got to admire the conviction of anyone who's buying right now. Hard to understand the logic behind it. I just don't see how a V-shaped recovery happens at this point. Best of luck.
Remember the shortage of tanker cars? There's still a shortage except now they are no longer rolling. They are parked in sidings and being used for oil storage. (According to a recent Wall $treet Journal piece.)
I read somewhere over the weekend that the refiners are cutting back production. They have run out of storage and it's still several months before the "driving season" kicks in. You'll need a little patience and a lot of luck to do much here. The question that must be answered is: Can COP stay afloat until oil recovers?
Full story in the New York Times if you care to read more. Time to tighten the old belt a little bit more?
The PSAC state football championship game is being broadcast in wide screen format yet Comcast passes it through to subscribers in old school 3 x 4 format. This is what you get for $90 a month.
"we" usually do mind our own business. It is Obama-rama-ding-dang who is flapping his jowls out of school.
Who can say for sure what's going on over there. It's beginning to look like the unraveling of the Japan market (which ten years later has still not recovered). Hard for COP to catch a break right now. Will the dividend still be "protected" by cash flow with Chinese economy faltering? 30% market correction is impossible to ignore. It will be a looooong time coming back!
Sentiment: Strong Sell
Over sixty tankers loaded with Iranian oil are bobbing around the Arabian Sea just waiting for the sanctions to be lifted. Refiners will be running at 100% capacity.