XOM. They'll take it private before long. That means they'll be supportive of the stock price.
Good to see F getting some decent news. But don't count out the shorts yet. The overall market trend is down and the analysts have yet to nitpick the results. I'm guessing you'll be able to buy at yesterday's close within the week.
12:38 PM ET, 07/24/2015 - StreetInsider
UBS analyst Shneur Gershuni slashed the price target on Sell-rated LINN Energy (NASDAQ: LINE) to $4.00 (from $7.75) as crude dips below $50/bbl again. Gershuni commented, "Back in December, when we first proposed LINN might cut its distribution, it was on the basis of leverage (Lightening into Strength). Since then, the market has further deteriorated, hence our review. Given the weak commodity environment and concerns over LINE s leverage, we ran an analysis to see what LINE's Net Debt/EBITDA could get down to with a further distribution cut. Using excess cash flow to pay down debt, we reached Net Debt/FY18E EBITDA of 5.0x. In our analysis, even with zero distribution for the reminder of FY15-FY18, LINN just gets to 5.0x in FY18E when using our house deck, above both Street & strip pricing. We believe removing its distribution and using excess cash flow to reduce leverage would help strengthen LINN s financial position." For an analyst ratings summary and ratings history on LINN Energy click here. For more ratings news on LINN Energy click here. Shares of LINN Energy closed at $5.89 yesterday.
Refinery capacity in the US is constrained. Most are running at over 90% of capacity right now.
Article in Barrons this morning on the zinc market holding up ...
Zinc looks poised to shelter investors from the storm raging across metals markets. Supply of the industrial metal, used to protect steel from rust and corrosion, is expected to lag behind demand as large mines shut down this year. This has helped prices remain firm despite the latest selloff in commodities.
...THE LOOMING SUPPLY SQUEEZE has insulated zinc from the broad price drop across industrial metals caused by fears that a collapse in China’s stock market would slow its economy.
A second wave of selling has been fueled by expectations of higher interest rates from the Federal Reserve that boosted the dollar, weighing on dollar-denominated commodity prices.
Many analysts expect zinc prices to hold steady or tick higher amid a supply shortfall. Inventories are already showing strain. Zinc stocks at London Metal Exchange warehouses are down 36% this year to 445,500 metric tons, after touching a nearly six-year low of 433,350 metric tons in May. By contrast, nickel stockpiles hit a record in June and are up 9.7% this year, while copper stocks have nearly doubled to 343,250 metric tons.
Demand for zinc has held up as construction activity in the U.S. and China gathered momentum. Meanwhile, China has lowered borrowing costs to support local property markets.
...To be sure, some market watchers, like Citigroup’s David Wilson, worry that a stronger dollar and a broader global slowdown will hamper zinc. He recently cut his zinc forecast to $2,130 a metric ton, from $2,155. Still, the outlook for zinc is brighter than that for other metals, says Robin Bhar, metals analyst at Société Générale. “Zinc is a bit more resilient,” Mr. Bhar said.
How does an aluminum truck make me more of a man? That's what Ford needs to figure out.
That's a long, long way into the future. For now, we are in a global depression and there is little demand growth anywhere, and the Iraqis and Iranians and everyone else are adding barrels. The commodity super cycle is over. The only thing left to figure out is when the entire stock market with crash to reflect the deflation of commodities.
Sentiment: Strong Sell