With sales at 25% and EPS at 216% for the past three years, and the sector outperforming most of the other sectors for reasons that are vital to the U.S. economy, RES is still an excellent buy.
Ex-Chevron Scientist Sees Opportunity in Oil at $100 a Barrel
By Charles Siler
Jan. 18 (Bloomberg)
....Tertzakian, a former scientist for Chevron Corp., is chief energy economist of ARC Financial Corp., an investment-management company in Calgary, Alberta, that runs private-equity funds focused on energy.
Sometime this year, he says, global oil demand will reach 86 million barrels a day, or 1,000 barrels a second. We're on the cusp of a ``break point'' that will change how we consume energy, creating opportunities as well as challenges for companies and investors.
``Oil at $20 per barrel is history, at least until major changes reduce the uncertainty, pressure and volatility that we are only now beginning to experience,'' he writes. ``Seasonal spikes of $100 per barrel or more will be the new reality.''
The world isn't running out of petroleum, he says: ``There is plenty of oil left in the ground to last us many decades, if not longer.'' Unfortunately, he adds, demand is accelerating even as the world is running short on the best grade of petroleum, light sweet crude.
Those who are buying companies like RES now will be rewarded.
Oil Falls Third Day as Dollar Gain Limits Appeal of Commodities
By Christian Schmollinger
April 25 (Bloomberg) -- Crude oil fell for a third day as the dollar's gains against the euro curbed investor appetite for commodities as an inflation hedge.
Oil is set for its first weekly decline since March 21. The dollar climbed on expectations the Federal Reserve may stop cutting interest rates. Gold, wheat, silver and corn prices also dropped.
``The stronger dollar means that we see people taking profit here,'' said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. ``People seem to think that the steep drop in interest rates is over. If everybody starts rushing for the exits you could easily see a $10 drop in oil prices.''
Plan Would Lift Saudi Oil Output
Published: June 14, 2008
Saudi Arabia, the world’s biggest oil exporter, is planning to increase its output next month by about a half-million barrels a day, according to analysts and oil traders who have been briefed by Saudi officials.
Susan Walsh/Associated Press
King Abdullah has called a meeting to address the causes of the oil price rally.
The increase could bring Saudi output to a production level of 10 million barrels a day, which, if sustained, would be the kingdom’s highest ever. The move was seen as a sign that the Saudis are becoming increasingly nervous about both the political and economic effect of high oil prices. In recent weeks, soaring fuel costs have incited demonstrations and protests from Italy to Indonesia.
Sierra Pacific Resources (SRC) is making a strong move up, and consistently pays a quarterly dividend of $1.125
April 22, 2008, 3:37 pm
Utility chief: we want to fuel the auto industry
PASADENA, Calif. — If you wanted a snapshot of the emerging alliance between utilities and automakers, the car park of the Langham hotel here was the place to be Tuesday morning. There was the CEO of one of the largest utilities in the United States putting the pedal to the metal of the battery-powered Think City with Think Global CEO Jan-Olaf Willums riding shotgun.
“I liked it a lot,” PG&E (PCG) Chairman and CEO Peter Darbee told Green Wombat after a few spins around the hotel in the electric coupe. “The acceleration was fast, it handled well and it has a European feel.”
We had just finished a Fortune Brainstorm Green session on electric cars (along General Motors’ (GM) executive Beth Lowery), where Darbee declared, “We want to replace the oil industry” as the fuel supplier to the automakers.
Think to Bring Electric Car to U.S.--Next Year
By Marty Jerome April 22, 2008 | 1:46:53 PM
The battery-powered Think City has a range of up to 110 miles on a single charge, with a top speed of about 65 mph, company officials say. It will be priced under $25,000....
This would be groundbreaking. Tesla's sports car may have pioneered the resurgent electric car in the U.S. But that vehicle costs $100,000 and only about 300 will be built per year.
How is Think different? Read after the jump.
Spokespeople for Think plan to produce 30,000 to 50,000 within two years. Currently the company produces 10,000 vehicles per year in Europe.
Think North America, as its U.S. arm is called, will build cars in Southern California. The vehicle was originally developed by Ford, though it sold it to Norwegian investors in 2003. And while there are a half-dozen U.S. startups working on electric cars, Think has received backing most recently from General Electric. It also has backing from venture capital firms that include RockPort Capital Partners and Silicon Valley heavyweight, Kleiner, Perkins, Caufield & Byers.
NEW YORK (AP) - Leading homebuilders saw their shares fell sharply on Tuesday, after luxury homebuilder Toll Brothers Inc. gave a cautious forecast for next fiscal year, the latest sign pointing to a slowdown in the nation's decade-long housing boom....
"This is more evidence that housing demand is slowing due to consumer confidence weakening and higher energy prices, and those factors are not company-specific and will affect everybody in the sector," said William Mack, an analyst at Standard & Poor's Equity Research.
Sept. 11, 2009, 10:06 a.m. EDT · Recommend · Post:
Citi raises profit estimates on Goldman
BOSTON (MarketWatch) -- Citigroup analyst Keith Horowitz in a research note Friday raised his earnings estimates and target price on Goldman Sachs Group Inc. /quotes/comstock/13*!gs/quotes/nls/gs (GS 174.90, +0.20, +0.11%) "to account for strong capital markets activity, declining systemic risks and an improving deal pipeline." The analyst, who rates Goldman shares a buy, boosted his target price to $215 from $175. The stock was up 1% in early trade Friday and has doubled in 2009.
Diamond Foods will prevail in part due to the Walnut Purchase Agreements with growers. The company may have to modify the agreements after the investigation, but the changes may be beneficial in the long run.
TKG will soon pay a special dividend of $7.945/share (X-date 5/27).
Here is recent upgrade:
May 11 2009
Telkom South Africa Ltd. (TKG SJ): Africa’s largest fixed- line phone company was rated “overweight” in resumed coverage at Morgan Stanley, which cited the “unbundling” of the company’s stake in Vodacom Group Ltd. Telkom fell 3.76 rand, or 3.3 percent, to 110.99.
Here is a recent article on
AT&T looks to African market
By Tom Burgis in Johannesburg
Published: April 16 2009 20:04 | Last updated: April 16 2009 20:04
AT&T, the biggest US telecoms group, is to expand its services into Africa in partnership with Telkom of South Africa, advancing the shake-up in the continent’s fast-growing communications sector. The Dallas-based group intends to use Telkom’s network, which reaches into 35 African countries from its Johannesburg headquarters, to supply services to multinational companies operating in Africa of the same calibre they receive elsewhere.
Ronald Spears, head of AT&T’s business division, said the partnership was the result of increasing appetite for African services among 1,800 of the group’s multinational clients.
“Those 1,800 companies are more and more asking us to provide more advanced services throughout the continent,” Mr Spears told reporters in Johannesburg.
A telecoms analyst with an international bank in South Africa said: “[African telecoms] is a space that has got very crowded and competitive. This will give them both a leg up.”
AT&T intends to use Telkom’s infrastructure – among the most comprehensive in Africa – to supply corporate outsourcing services to its clients who operate on the continent. These include data systems and networks for businesses and information security.
Telkom’s strategy is to become “a fully fledged pan-African operator” primarily by targeting the corporate market as it seeks to take on rivals such as Vodacom and MTN that are aggressively snapping up the continent’s retail mobile phone users.
Reuben September, Telkom’s chief executive, told the Financial Times the partnership would produce specific contracts in months. “The scope is huge. I don’t want to talk in numbers but it will be multi-million levels a year in revenues,” he said. Telkom’s revenues for the six months to September were R29.9m ($3.3m).
Like all major telecoms groups, AT&T is looking to expand in emerging markets as developed nations approach saturation.
Mr Spears said the partnership with Telkom was similar to arrangements AT&T had in the Middle East and China. It has no investments in Africa.
Irnest Kaplan of Kaplan Equity Analysts said the immediate significance of the deal should not be overestimated.
However, Mr September said Telkom, which recently bought the outstanding 25 per cent of its subsidiary in the lucrative Nigerian market for $130m, “will, in co-operation with AT&T, also explore opportunities for collaboration in the area of mobile services in Nigeria and other sub-Saharan African countries”.
Mr Kaplan said: “That symbolises that this is not just a little commercial arrangement. This could evolve into something bigger.”
<With the $10 dividend the corresponding stock drop was easy to calculate. As to the FNT spin any thoughts or opinions?>
Yes, I've been wondering about this question too. Are there investors on this board who may have some experience/thoughts on the matter?
Telkom SA LTD (TKG) plans to spinoff Vodacom shares. The X-date for the spinoff is 5/18/09. Does anyone know what happens to the TKG share price for shareholders who bought TKG shares after the X-date established for the Vodacom spinoff?
The news of the regular dividend (e.g., 2007 and 2008 $6.10 and $3.22/share respectively) should be announced on June 23rd when Telkom presents its annual results for the year ended March 31, 2009.
TKG is a good buy here.
FNF has long established a strong presence in the real estate industry, and their services are diverse.
Yes, interest rates are coming up from historical lows, but this means that prospective home buyers now have good cause to buy in the next year or so before rates move toward historical highs. Have you ever played musical chairs?
Investors who buy/hold FNF now are likely to gain in the next several quarters, and the current special dividend is only a part of this gain.