Orange A Buy With Rebounding Performance And Possible Asset Spin-Offs
Oct. 30, 2014 4:14 PM ET | 1 comment | About: Orange (ORAN)
•Middle East/Africa region continues to see growth in customers and revenue.
•Revenue declines were lower than past quarters, showing a rebound in revenue.
•Company said to be exploring sale or spinoff of several international assets.
Alpha Natural Resources Inc. (ANR), the biggest U.S. producer of metallurgical coal, said more production cuts by the industry are likely because the market remains oversupplied.
Why Yahoo stock is surging ? Here's part of an article from Yahoo Finance. "Another possibility: Investors have begun to give Yahoo more credit for the potential to divest its Alibaba and Yahoo Japan stakes without paying taxes. On Yahoo's conference call last week, CFO Kenneth Goldman sounded encouraged about selling Alibaba without incurring a tax bill. "I have used the word 'optimistic' and I'll stick with the word 'optimistic' that we can effect a structure that makes good economic and tax sense," he said.
The tax bill could make a huge difference in how investors value Yahoo. Starboard estimated in its letter to Yahoo that a tax-free divestment of the Alibaba and Yahoo Japan stakes could save the company $16 billion. Similarly, Piper Jaffray estimated in a note last week that the company's sum-of-the-parts valuation is $56 per share assuming no taxes versus $41 per share with a 38 percent tax rate. "
I think that's a result of Yahoo owning a large position in Alibaba. As Alibaba shares go , so does Yahoo shares . It has nothing to do with Yahoo's performance . And by the way , that CEO resigned after he turned down the MSFT offer.
DWA now sells for a mere 400 times earnings . In that twisted world of Hollywood fuzzy math , that's a steal. But I will say this , it's better than a loss , which had been the norm for a couple of years.
You could very well be right , but I'd like to see real consolidation in the industry by reducing the number of competing coal companies , which would give the remaining companies real influence on supply and pricing. Coal companies may never return to the high flying producers they once were , but it doesn't mean that they should have to teeter on failure. You may have or have not seen what CEO Kleinfeld has done at AA to turn around really dismal Aluminum refining operation. It just proves you don't have to stray very far to make an old industry new and lucrative . All I'm asking is to not rule out doing something else. Fracking sand is very much in demand and , I think , easier and healthier to mine than coal. And I'm not worried about the debt load. If you do something that makes money the debt load gets paid off eventually. So , I want Boyce to get back to work and stop relying on the coal business for something to happen , because it's not going to. If he wants coal to remain useful then he needs to go into the power generation business or the metal refining business and do something to take charge of coal's future , because talking about it is just that , talk. .
and get to work. All that rah rah sis boom ba is great , but instead of a cheerleader we need a doer. Now is the time to start a gasification project in the US of A. With the stock at it's lowest point , it seems a cinch to merge with a coal fired utility , maybe Exelon . Just do something other than just coal . I know , he can't hear me because he never stops talking and when he does he can't hear because of those damn coal brickets in his ears.
Let Softbank turn DWA into the second coming of DIS, because the Katzenberg model is too painful. By the time he gets the DWA TV channel going , I'll be an old man. And without significant earnings and cashflow, he's going to have to borrow a lot of money for the start up of the TV strategy.
There is no question ,that , ESV is best of breed in Offshore and Deep water. Maybe Cramer bought at the top, but ESV will fair better than DO and RIG if oil prices remain low for an extended period .Why? Because producers want the best equipment with the best results . That said , ESV is going to see significant reductions in Revenue , Net Income and Earnings as day rates plummet and Drillers scramble to compete for fewer available contracts . But who are you going to choose between when DO is offering a 20 year old rig and ESV is offering one built last Tuesday for the same price ? Also many ESV customers have relief from lower oil prices . Contracts had been written to lower day rates if oil fell to certain levels . This allowed customers not to lose money on a well drilled with ESV . While ESV will suffer along with the rest of the industry their business should fair better than most. But other issues remain as ESV is in the midst of more rig upgrades and the sale of a few older models bringing into play the effects of financing these changes . No doubt , that if ESV cannot sell these older rigs , they will be paying more to finance the new ones . My assessment is that ESV will go lower if oil prices remain or fall lower based on their new rig quandary . If prices make a significant recovery , the sales of the older rigs should come thru and day rates and contract backlogs should pick up. And lets not forget that the dividend is at risk if oil prices remain subdued.
But with sanctions against Russia there are probably earnings and revenue revisions coming. TOT's Russia production represents 10% of TOT's total production. So the $50 something range seems about right for short term future earnings and revenues . Is this a good longer term investment ? You probably need a cast iron stomach. Why? Mostly geopolitical reasons . And of all those possibilities in the world ,West Africa seems to be the next oil sensitive one . TOT has a big stake in Nigeria . I nor anyone else can know for sure what will play out in Africa . I suppose you can drill offshore during an epidemic. And while TOT has been a reliable high paying European company , European companies are notorious for reducing dividends with lower earnings , not to mention that ,currently the dollar is gaining strength against all foreign currencies , which translates into lower dividend from currency translations. The thing to take away from my assessment is that TOT is most likely a decade in the making , unless Russia and Africa have a change in their outlooks . If TOT were to consider a US or Canadian purchase, I would change my tune .
“Two out of the last four films have lost money but they didn’t put the company at risk. The company is strong and profitable. It will be around for a long time.” I don't know what financial statements he's been looking at. Maybe he looks at statement prepared just for him and not the ones the rest of the world sees.
"Orange SA, France’s largest phone company, is considering a separation of its African assets in an initial public offering to free up funds to bolster its European business : " This is not news to me. Did anyone other than ORAN management think that Africa was the solution to their European woes? If you asked me what Africa needs ,I would have said water and waist water development ,not high speed internet and iphone service.
The Dow Chemical Company Earns “Buy” Rating from Citigroup Inc. (DOW)
Posted by Scott Davis on Oct 6th, 2014 // No Comments
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The Dow Chemical Company logoThe Dow Chemical Company (NYSE:DOW)‘s stock had its “buy” rating reaffirmed by Citigroup Inc. in a research note issued on Monday. They currently have a $58.00 price objective on the stock, down from their previous price objective of $62.00. Citigroup Inc.’s target price would suggest a potential upside of 14.58% from the stock’s previous close.
Peabody Energy (NYSE:BTU)‘s stock had its “hold” rating restated by analysts at Deutsche Bank in a research report issued to clients and investors on Thursday. They currently have a $16.00 price objective on the stock, down from their previous price objective of $19.00. Deutsche Bank’s price objective would suggest a potential upside of 36.99% from the company’s current price.
The dividend can hold a stock up , but not this one . Typically it would for a very good conservative company with great fundamentals and business outlook( and management etc. etc. ). In the case of BTU the dividend is not safe . Sooner, rather than later , BTU may need the cash to pay down debt , fund closures of mines etc. , in an effort to continue to consolidate operations (get smaller) and try to get back to profitability. It's better to have earnings than pay a dividend . So don't count on BTU to keep this one .
I couldn't agree more . A turn around could happen in two years , five years , ten years or never. And with the market appearing to be topped out , everything seems poised to sell off , not just coal . So , as you imply , there's plenty of time to invest and lose your money with BTU. Waiting for a definite change in coal's resurrection is the prudent thing to do .
Why Canadian pipeline companies are moving billions in assets to U.S. subsidiaries
Geoffrey Morgan | October 2, 2014 11:57 AM ET
More from Geoffrey Morgan | @geoffreymorgan
TransCanada Corp. announced on Wednesday it would sell its remaining 30% stake in the Bison pipeline.
Scott Dalton/BloombergTransCanada Corp. announced on Wednesday it would sell its remaining 30% stake in the Bison pipeline..
CALGARY • Canadian pipeline companies are moving billions of dollars worth of assets to their U.S. subsidiaries, a move that allows them to pay less in tax and raise more capital for their major projects.
Peabody Energy: The Best Coal Stock
Oct. 1, 2014 5:13 AM ET | 13 comments | About: Peabody Energy Corporation (BTU)
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
•Thermal coal market likely to improve in near term due to increase in coal-fired electricity generation and improvement of rail issues in U.S.
•Met coal markets likely to remain soft in near term due to excess coal supply.
•BTU has strong liquidity position, which will allow it to survive through industry downturn.
The U.S. Coal Industry has been passing through tough industry conditions. The industry has been adversely affected by strict government regulations, lower natural gas prices, weak economic conditions in important global markets and depreciation of the Australian Dollar. Also, coal markets, especially met coal markets, have been oversupplied, which has kept a lid on a coal price recovery. I believe in the near term, the Coal Industry conditions will remain challenging as demand for coal remains weak and coal supply remains excessive. In the long term, better coal supply management, an increase in natural gas prices and improvement in key global markets will portend well for the Coal Industry. I believe Peabody Energy (NYSE:BTU) is the best coal stock to play a coal market recovery in the long term. The company has a diverse geographical operational base (in the U.S. and Australia), and it own quality assets in low cost regions of the Illinois Basin and PRB. BTU has a strong liquidity position and no significant debt maturity in the near term. Also, BTU will navigate through the current tough industry conditions and thrive once coal market fundamentals improve.
(You can read the whole thing at there site. Personally ,I take this kind of writing with a grain of salt)
•Stephane Richard, the CEO of giant French telco Orange (ORAN -2.6%), has confirmed to Le Monde Orange will offer Netflix's (NFLX -2.8%) services to pay-TV clients through its set-tops. "The negotiations were tough but are finished. There is no reason to penalize Orange customers, who will have a much better experience using Netflix through the box."