Since the low in December 2012 about 15 or so months ago, OXY is up 31%. A lot of the rise is based on expected restructuring, which is going slow because of the fiefdom that was the structure that this company took. I think a lot if the current run up is that they are drilling much more efficiently. It is going to take at least the rest of the year to sort things out.
I think the company is really good for the long pull and gave some shares to my 8 grandchildren in accounts that reinvest the dividends. If you buy this stock I would not but it all at once. It is considered a refining company and the earnings can be choppy. In the last 3 months it has traded into the mid to high 70's, then got hit down to about 70 and now it recently touched 80. I also own COP. Another interesting company in the energy space is SE (Spectra) which owns the other half of DCP and also has an MLP.
You have to expect this after a big run, especially when there are a lot of worries in the world. China, Crimea, is Europe on the way back and are we finally pulling out of this 5 year down turn. The large investors that move these high PE stocks are also usually leveraged to the hilt and jump ship at any hint of bad news. The 3D printer stocks are also getting hit.
NEW YORK, March 13, 2014 /PRNewswire/ -- Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Orchids Paper Products Company ("Orchids" or the "Company") (NYSE MKT: TIS) for potential breaches of fiduciary duties in connection with their conduct in seeking shareholders' approval the Company's 2014 Stock Incentive Plan.
Specifically, in the Proxy Statement filed by the Company with the Securities and Exchange Commission on March 5, 2014, the Board of Directors recommends that Orchids' shareholders vote to approve a grant to approve the Company's 2014 Stock Incentive Plan which would allocate 400,000 shares of Company Stock for issuance there under – and would be separate from the 400,000 shares allocated under the Schoen Option for the Company's President and Chief Executive Officer. The issuance of the additional shares could have a substantial dilutive effect on the shares of Orchids common stock.
Valuation is extended at current price. The PE is 23X and the 2 year growth rate averages 7.5% based on analyst's consensus estimates. Even if they beat a few cents each year it is still high. Furthermore, the dividend rate is down to 2.1% and they have been only raising it 2 cents per year. There is a lot of hope built into their none utility businesses. They do not have premium old property.
Article on Seeking Alpha - copied conclusion below:
Summary And Conclusion - by Michael Fitzsimmons
As I wrote back in November of last year, Phillips 66 may well be the Best Play On Domestic Shale. It is well diversified in terms of midstream, chemicals and refining. The MLP drop-down strategy with PSXP is working beautifully and will for years to come. A widening of the Brent/WTI spread will be great for PSX's refined product export business. The company continues to reward shareholders with dividend increases and stock buybacks: $876 million in Q4 2013 alone. Recent insider trading activity is just another reason to own this outstanding company.
Because for some reason the full value of investments are almost never realized unless you can consolidate the subs earnings into yours. You can believe want you want, but the numbers of Sanofi are the chief driver and the REGN investment has little effect.
When a parent has legal control of a subsidiary, the parent consolidates the subsidiary's financial results with its own. Ownership of 50% of the subsidiary's voting common stock generally implies legal control. However, the parent must own at least 80% of the vote and fair value of the subsidiary's common stock to consolidate for tax purposes. In preparing consolidated financial statements, intercompany balances and transactions are eliminated.
Sanofi buying REGN for investment does not make a lot of sense. The acquirer never achieves full value. It just does not happen. They have other things in mind. Takeover or much closer ties to REGN for future collaborations.
At the low end Of $150/share the PE would be 120X and the growth rate going from 2014 to 2015 based on average analyst's estimate is only about 35%. There is no way that can happen. FB needs to monetize a lot more of its potential to even reach $100. There is really no concrete plan to do that, although they are working hard toward that goal.
In 2000 the market was entering a long secular bear market due to high commodity prices from under investment in oil & gas , mining and agriculture. Due to high commodity prices a ton of money has poured into all those areas. The overall market is about to enter a new long term secular bull market similar to what happened in 1982. In fact it started when the market punched through the 2000 level on the S&P500 last year. Technology is leading the way. The social network companies are integral to advertising in this new era. These secular bulls result in greater GNP and therefore more money in most folks pockets. There is more cash available for a company like FB to monetize.
Can always rely on you libs only telling half the story. Hutchinson is a company in deep trouble and just happens to have a plant in Wisconsin. Let's look at the rest of the story below:
The cuts announced this week will leave about 600 Hutchinson jobs in Eau Claire, said Mike Schatz, the city's economic development administrator. He said it's been known for some time that Hutchinson would move assembly work from Eau Claire to Thailand, and that the jobs in the city lasted longer than expected.
Eau Claire expects to regain about 100 manufacturing jobs, meanwhile, when Riverside Machine & Engineering completes a planned purchase of part of the Hutchinson complex and locates operations there, Schatz said.
Hutchinson has lost tens of millions of dollars annually for six years running. The losses range from $35 million last year to $168 million in 2009
How about the 100 new manufacturing jobs.
Tomorrow is Saturday. Investors have the whole week end to think about this. Shorts love to #$%$ people out of these high fliers. At some point there will be a short squeeze and we will get our revenge.
Making deals to sell healthy food is also a plus. Not just a pot company. Edible gardens can add a lot to this company and they are also pushing that part of the business.
I would think hand over fist today. You cannot let these events spoke you. In the big picture 3 - 5 years, this is merely noise. I spent to much time analyzing and then determining which Biotechs I wanted to own to be spooked out.
The real question is why the heck did they ever buy this turkey to begin with? Wait Irani was involved. Explains everything.
Phillips 66: Strengthening Its Midstream Segment - see this article on Seeking Alpha. Summarizes what PSX said at the Refining Conference about their Midstream operations. They are using refining cash flow to build internal midstream operation. DCP and CPChem have cash flow to fund their operations and need no money from the partners.
Good summary of the business - 34 minutes including Q&A.
You libs love to run your mouths. If you are at least get the story straight. The cuts are coming form the federal government controlled by liberal Dem's and the town that would be affected by a cut in shi building has only 11,000 residents in total. furthermore this is only a proposal and may never come to pass. If you are going to post at least tell the truth. Why not discuss something positive about WEC because there is a lot of good stuff going on.