I had bought at 49 and sold half of it when it got above 55. no reason not to trade the range in between the dividends. Doesn't appear like the sentiment will switch anytime soon. Company is good its just the market that's broken. We desperately need a correction to reset this market. I moved back to 60% cash.
I haven't done all the research work on oxy itself yet, but I do plan to hold both. I think CRC could be the next EOG. I like the OXY assets and agree they could spin off more of the assets. you could get CRC this year and another spinoff in the future for the MLP able assets.
After reviewing all 219 pages of the form 10 for the spin off, I bought OXY. Oxy will keep the Permian, International, chemical and pipeline assets. CRC will keep the California assets. Based on the Form 10, CRC accounts for 17% of OXY's revenues. This currently values CRC at 13.3 B in market cap. Here is my valuation case for CRC. These assumptions are based on if OXY would issue 1 for 1 stock spin off to compare.
4.2 B in revenues
869 M in net income
1.10 in EPS (Based on 2013 EPS)
10 - 15% growth rate
Current CRC valued stock price $17
Based on 2016 projected earnings and assuming a modest 15 P/E, CRC could easily trade at $22. That is a premium of 30% of what its being valued at as part of OXY. As for OXY itself, It would be worth $83/ share and sport a 3.46% dividend yield. That would give it a payout ratio on 50% which isn't very bad. They could easily keep that dividend.
I posted on this forum just a few weeks ago with my calculations of a price target of 112.50 and no one cared but now Piper Jaffray says so and everyone cares lol.
I am long the stock and love the White Wave story. My biggest short term concern is almond prices and the drought in California. I am waiting to see how this plays out and if WWAV is smart enough to hedge prices. This is a short term catalyst that can move the stock lower in the short term and create a better price entry if it goes badly. Got my position but also have cash waiting should we get a good pull back in this stock cause of it.
I will take the opposite side of that bet. No one expects good earnings hence why the stock has been selling off. I believe they will be just fine on earnings. Day rates are stabilizing, older rigs are being retired and new markets are opening up like mexico. Ensco is the best in the offshore sector with low debt. low payout ratio and the highest dividend. I would be loading up around 48 to 50 and get rich slowly.
I am waiting for a pull back to put more money to work. 4.7% yield is good but I would like to see if I can get a better deal.
I don't see where everyone keeps saying mixed guidance. they raise revenues from 7.5 to 7.6 billion and raised the EPS from 3.50 - 3.60 to 3.60 - 3.65. If you go buy their own guidance that puts them on a path to 7.50 (split adjusted) EPS for 2017, I would say they are clearly beating their own goals. If CELG sells off at all, I will be adding to it. this will be back to $150 by 2017 for another double on top of the last one. This stock just keeps doubling and makes me feel like a genius for buying it.
I had bought at $32 and took some profits on it when it got above 36. now i am just waiting for it to come back down to put that money back to work. I always have some cash ready for good sell offs. Its part of being a good investor.
Even though I'm a shareholder, I do find it a bit ironic they spent 2 years buying back tons of stock just so they could issue all that stock back to buy DTV. I guess we could consider that prepaid lol. I might be the exception, but I like the DTV merger.
Glad I sold my GSK at a much higher price. This company is doing poorly. revenues continue to decline. All the financial engineering in the world cant overcome bad sales. I think the corruption that we see from them in China along with poor sales makes the dividend no longer worth the risk.
For long term investing. All you do is buy and set up a DRIP. the dividends account for most of the gains. Over the long term the price you pay really isn't as important at the yield your getting. Once you have your position and the DRIP set up then you still have to monitor the company to ensure its preforming well and nothing is happening that can put the dividend at risk.
agree, with trading at less then 11x earnings and having a very nice 5% yield, this one is a no brainer.
Maybe CELG can design a drug that prevents people from saying stupid things while public speaking. I'm sure Yellen could use it.
I should call Janet Yellen and see what her numbers are for the new chron's disease drug. Maybe my numbers are too aggressive. Personally anyone who would sell anything on her remarks is too stupid to be in the market to begin with.