Worley Parsons was hit badly overnight after admitting mining projects will drop revenue and backlog.
This is a larger version of the FLR problem of declining mining project emphasis before other divisions are ready to burn those elusive elephant projects that are always a quarter or two away.
kinda like the classic bar sign, " Free Beer Tomorrow"
Nope. CVX is linked with the world and us economy. upward we go, and this year all the doubters have pushed the stock price performance at worse than the S&P. That's just wrong. if the S&P is rising, CVX should be rising faster. we are leveraged to global growth, and with production increases in the pipeline only a few quarters away, close enough for the market to start pricing in rising not slumping production.
the short squeeze is on. I cant believe this thing go so low , just look at the vol building on the cover trade.
they had been using the cash flow to pay for Detroit, now that's done, they have just about swallowed BP TxCity without taking on my debt, so i see the extra cash going for debt reduction, repurchase shares, and a 20-40% divvy expansion. they can do all three. lots to like. good thing they are too big for B uffett to buy. its going to be a steady 10-15% share price gainer for the next several years. The PE at 7X is way too low for a steady reliable cash machine.
there is single didget sales growth, and margin could only grow if cotton were free, and labor was shifted from virtual to actual slaves. no way it deserves a 22 PE. half of that maybe. lots of industrial names have the same earnings, growth, and sub 10 PE. that is reality, this thing is priced for another era. watch out below.
its going to earn $6-8/share, with little or no margin growth. that is a 12 PE in this market. so at best it finishes the year at 100. lots of fluff to come out of this shirt.
Their Q1 breakout showed over $30/bbl gross margin. nobody else was close to that. they have some geographical things on both crude supply, and product pricing that nobody else can match over the whole system. i think HFC out of NM and into Az has similiar, but their system is diluted by more standard spreads out of Tulsa and Ks. plants. WNR is going to blow away the estimates if they can put together a whole quarter with 95% + plant utilization.
Well, i think he has a point to make, and i can see both points, as i sold half of mine a week ago, and placed it in an equally profitable, growing company that now yields near twice as much in dividend. I mean, if you bought it for the divy, and you get 5 years worth of distribution via stock price gain, why hold it??
That's it. Im not waiting. They musta got something very wrong. Exxon doesnt usually miss like this. Im out of the stock. You just cant invest a zillion dollars and not turn it on.
Sentiment: Strong Sell
there is not much competitive advantage or disadvantage, so not a big ecomonic deal. good for a VLO who has their own stills.
I used to be 50/50 in VLO and HFC. I've trimmed both on the way up, but now piling back into only HFC because of the buffering affect of those special dividends. How can you lose?
This is sooo much better than last winter. And with added territory, the extra sales are coming at higher gross margins with propane wholesale pricing so low. We are going to have tremendous earnings for the quarter.
I've decided to hedge my exposure to overpriced industrials and equities leveraged to world GDP growth. I picked DD as the perfect vehicle. Heavy in to puts at 46-48. going to sleep better then next couple of months.
Is it possible that they didn't secure pipeline space, and that starting up is not possible without a transporation outlet? The existing pipelines into the Midwest are under apportionment.