U.S. ethanol continues to be in high demand in Canada, Brazil, China, etc. Investors are missing the boat here. Meanwhile, Washington continues to interfere with the domestic energy industry.
This from a "Market Watch" story: "..an Iranian official was quoted as saying it would be “illogical” for Iran to freeze production ..." So there it is; Iran is not on board..........
The numbers look pretty good, thanks for the work. Too bad no one can factor in the damage that will be done if or when they have to add debt and/or spin off assets. And all very much depends on the length of time it takes for oil prices to recover and to what level they can rise to.
Heard a guy on one of the TV business channels Friday who is very bullish on U.S. domestic producers for the long haul. Said that the U.S. will be the most stable and dependable place to contract oil purchases going out the next decade. He cited social, political, economic conflict in the Middle East, Nigeria, Venezuela, etc. as problematical. Made a lot of sense, but I'm not buying here either.
Manuel, that's going back a really long time! Everyone involved in the Rubbermaid deal is long gone. However, you make an interesting point. What, NWL was around $50 per back then? Hmmmmmm
Verizon's top line is not dependent on commodity prices. Verizon sells a service. Who was saying that VZ could not pay its dividend? I want to know so that if that person turns up in an interview I can safely ignore his or her advice.
$40 does not seem like much of a spike. It would be nice to see oil stabilize around that price. But what if the dividend is eliminated? It would be very painful but at least it would be a lot smarter than to sustain the dividend by borrowing. Extreme caution is recommended here. This is not for the faint of heart.
"... they have extended projected capital spending budget cuts through 2017... ." They are willing to sacrifice exploration and development so they can continue paying the dividend. This is called "robbing Peter to pay Paul." What happens when they run out of cash? How do they grow the company two or three years down the road? At some point they have to start borrowing.
I got out of this one before the end of 2014. Since then MCD seems almost bulletproof (observe today's gain in spite of lousy sales numbers). It almost looks like a good candidate for some channel trading - low $90's buy / high $90's sell.
You are correct in recognizing that MCD is no longer a growth stock. However, I would watch very carefully if/when interest rates start going up. Dividend stocks usually get hammered. Have an exit strategy. You can always get back in after the "professional investors" have calmed down.
At 8 times that puts COP under $30. Proportionally the dividend would be about $1.50 at current yield. Of course Jones could be overly pessimistic in their analysis.
Well, it's always an honor to hear from one of the Great Thinkers of our New Age of Enlightenment. I guess we can all learn a thing or two from rwh4fshg.
Manuel, you got it mostly right. It happened in Japan, not china. But you 100% right about another bad news day for the golden arches.
Wouldn't be my first mistake in the market. I fully expect that COP will recover at some point, the trick is to figure out when. I no longer have the stomach or investment horizon to mess around in commodity driven stocks. I just never seem to get the timing right. Bought COP before the PSX spinoff so I've been through the entire cycle once and do not intend to hang around and go full circle again. I DID make some money so, yeah, I'm convinced I did the right thing. Isn't making a profit the whole point of this exercise? The stock market is what it is, I don't like to make a moral issue out of every trade.
How does the price of oil get cut in half and COP is still trading in the high 60's? It does not make sense to me. Every commodity driven stock I've ever looked at the share price was driven by the price of the underlying product. Take a look at gold or copper miners the past few years. What am I missing? Someone posted that the dividend is in danger - another a negative that the market seems to be ignoring. I've sold my COP shares and would not touch another oil or oil services company at this time.
I own other stocks. Agree about reinvesting divvys. But dividends don't make sense when you are losing principal. These fast food joints are cannibalizing themselves. Less than ten minutes drive from my home I have four McDonalds. Also have Wendys, Burger King, Taco Bell, Arby's, Chinese places, pizza shops, mall food court, grocery store food court, three or four Subways plus the usual selection of independent and chain sit-down restaurants (Appleby's, Cracker Barrel, Panera Bread, Chipotle). All are chasing a finite number of customers. While other sectors are consolidating the restaurant industry seems to be fragmenting more and more. I guess I just don't like the restaurant stocks at this point.