They have hurt the real owners of PFE, the shareholders. Company needs to do massive stock buyback to compensate shareholders for lost opportunity when AGN deal announcement last Fall derailed the stock move toward $40's. The Limey and the BOD should pay the $150mm AGN expense from their own compensation/stock options. After all, shareholders didn't want that deal. As it stands, the Limey and the BOD act on their own, are hostile to the shareholders, and need to be voted out..
Management would get better if the Limey and the board slicks would listen to the shareholders instead of themselves. Shareholders didn't want to overpay for AGN or AZN deal before it. Instead, these management "geniuses" accomplished nothing, but to lose $150mm on expenses and draw scorn on the company as tax dodgers. Oh, but I guess they got deal bonuses and stock options. What did shareholders get? How about shaft up the #$%$. And how about the broken stock price momentum higher from last Summer, when the stock was moving toward $40. BTW, $40 isn't a new high. Long term shareholder/sufferers remember 8-9 years ago when the stock was in mid-$40's.
IMO the Limey and the lap dog BOD are more interested in self-serving than interests of shareholders.
Shareholders didn't want the AZN merger or the AGN deal. Execs going on an agenda that didn't serve the shareholders pressed on until they were stopped by outside forces. What is the motive for execs to continue trying to do deals the shareholders don't want, that ultimately hurt the company? Maybe they all talk to themselves in the boardroom instead of listening to the shareholders. Maybe they are just so arrogant they don't care what the shareholders think. Maybe they are just focused on their deal bonuses and stock options. Or perhaps they are gaming the system on stock trades. Don't know; just wondering.
Seems to me the boardroom slicks have cost the individual shareholders break-up fees/expenses and opportunity costs as the share price lost momentum in its advance toward $40's. Long term shareholders recognize that getting to the $40's is just recovering lost ground from 8-9 years ago. I guess the execs got deal bonuses and options, while getting scorn piled upon the company, and screwing over the shareholders. Great Job!
Isn't that great. Only going to cost us $400mm....maybe, to un-do a deal the shareholders didn't want in the first place, and has brought scorn onto the company. The Limey and his flunky BOD should have to pay it. If they hadn't done this stupid deal, I think the stock price would have seen $40 or more by now. BTW, I guess the execs all got deal bonuses for this mess.
Maybe $100 oil streak was just abnormal. Maybe oil will stay below $40 until there is nuclear war between the Sunnis and Shiites in the Mideast. How long do you think it will take before that happens?
What a difference in 2 weeks since I posted this. Here in N. Illinois corn looks very healthy. Warmer, drier weather has really made a difference. We are starting to need some rain now, but that is forecast for tonight. I doubt price will get to last years lows, but IMO will certainly be weaker than I had anticipated 2 weeks ago.
My feeling is that the pullback today was just a correction after a long run-up. I believe the excuse was USDA keeping yield unchanged. The reduction in excellent crop acreage was stated, but no reduction in yield. Interesting. I believe we will see $5 corn by September, and even higher eoy and next year. JMHO.
To my thinking if the increase in oil supply to glut status was due to tight oil, then the oil price would have been gradually eroding as the tight oil supplies became more plentiful over at least last couple years. Instead, oil price was $90+ for several years until about July when it started to drop, and then after OPEC no cut announcement, it significantly dropped. IMO the oil glut results from significant, purposeful overproduction which must result in a period of underproduction which will be forthcoming.
The CEO departure has prompted speculation that there must be some really bad news coming. That may be so, but it also coincides with the news of Blackrock's stake. I'm curious if he was forced out or bought out by the major shareholders, and if this signals increases forthcoming in their stakes, possibly buy out of the company. Even with rigs being stacked and scraped, the RIG's assets are over 2X the stock price. This is the set-up that occurred with many of the buy-outs that Icahn and Blackrock have done in the past.
I don't believe it is rational. So, there must be something causing it other than normal market forces. It is costing some entity a lot to make the irrational move happen. So, the question is how long can they keep it up? My guess is that the dollar will have completely reversed to July levels by early next year. But that is just my guess. And if it is the Fed that is causing dollar strength anomaly through manipulation, it has a lot of firepower to continue playing its game. We'll see.
Gold and commodities have been down since the dollar has run-up in July. During the last 5 years dollar run-ups have lasted 6-9 months or less. This one began in July. If history prevails we will be back to prior levels by early next year at most. Gold should therefore be back to July levels by then. Now, why has the dollar been so strong since July. IMO it was primarily anticipation of end of QE and Fed tightening rates. How can Fed raise rates? Consider the amount of additional interest that would be required for US debt. Moreover, the Fed must consider the true state of the economy. Weakness has been shrouded by prior Fed action. Can the Fed and the Obama administration now reveal that US economy improvement has been a sham of their creation? I don't think so. Instead, I think we will see QE forever, and the dollar will return to the dustbin. JMHO.
Chile's big export is copper. China is the big copper buyer. China has the ability to use copper purchases as leverage. They can buy from Chile or somewhere else, and they can adjust the scale of their purchases up or down. A more cooperative Chile gets more copper purchases and vice versa.
Stock price seems to have bottomed. Upward pressure on price is seen, even when oil price is down. Anything other than a terrible earnings report will cause this stock to move back into $40's.
I think Chilean officials would be intimidated by a Chinese company as the Chinese government would be understood as backing the company's play, since acquiring gold is in that government's interest as it moves toward gold backed yuan. China can exert pressures on Chile that Canada would not.
Chinese gold producers are ready to do deals. IMO this was deal hinted by African Barrick CEO. I think it is also possible that a deal for a portion of Pascua-Lama could get that project producing and contributing to ABX bottom line and help pay down some debt.
The reason gold has been down since July is the run in the dollar. Last week dollar run started to roll over. In coming weeks it should revert back to July levels. Since Gold and commodities have tanked during this period, I expect them to rally as the dollar comes down. One could ask why dollar rally should end, and not just head fake. If you look at dollar charts going back 5 years, you will see that there have been several dollar run-ups. They typically go from beginning to complete reversion to mean in 6-9 months. Well, this one started in July, and now we are 3 months in. That is about typical for peak. There are no fundamental compelling reasons for dollar to be strong. US is still largest debtor nation. Money printing may stop at some point in the future, but what about all the un-backed paper that has already been printed that has debased the currency. The Chinese have been accumulating gold in anticipation of replacing the dollar with yuan as reserve currency. China hasn't acquired the debt US has, and is much more financially stable. GLD, SLV are the best protections against the coming dollar devaluation.