I think they are the largest company in the Refuse space. I really do not think a company that does not know this business would want to own them. It is not a company you add to a portfolio of other businesses because it is so different. CEO's have tried that before and it never works. Takeover by private equity would not be in the cards because WM has way too much debt. I do not think this company could handle a leveraged buy out.
This article was on Seeking Alpha - 12/22/2014:
Report: Oxy Petroleum in talks to buy Permian Basin shale explorer
Occidental Petroleum (OXY -0.6%) is in talks to acquire closely held shale explorer Three Rivers Operating Co. II at a price below $20K/acre, Bloomberg reports.
A purchase of Three Rivers' owned rights to 82K acres in the Permian Basin would cement OXY’s dominance in the area that is the most prolific U.S. crude region, and would be the company’s first significant acquisition in more than four years.
Back in the 1970's young folks started to buy Toyotas, Hondas and BMW's at the high end because the big three made #$%$ cars that cost a lot. There are some places in the US where you would be hard pressed to find a Ford or Chevy. In this case UA has won over the minds of the young generation so sale4s will only continue to go higher as they make more money and buy these products for their kids.
Utility stocks in general are on fire. D in particular up over $1 today with a high of $79.85. I think investors are starting to look at the growth in assets resulting from expanding capital programs. Utility rate making has always been politicized over the years, but the deferral of needed investment is forcing the regulators to agree to upgrading plant along with new investment for growth. A good example is the replacement of iron pipes in the natural gas distribution network.
Secondly, I do not see any significant rise in interest rates. Interest rates on the 30 year Government bond, in the US, form 1900 to 1960 only went above 4% for a few years in the 1914 - 22 time period. This coincides with WWI and its after math. In the late 1960's rates took off peaking in 1982. It took about 30 years to beat that out of the system. I see rates returning to the 4% or less range. Up until that late 1960's spike, utilities were very good investments. Furthermore, because of the risk, common stocks always paid more in dividends than bonds did in interest. We also have low inflation primarily due to stable or lower commodity prices.
Unfortunately the traders of ETF's, that hold huge % of CELG, do not really care about Revlimid. As a result we suffer in the short term with GILD. These are not investors but short change artists that over react to any news.
I might add that there may be some liquidity issues with those ETF's. So in effect in the short run a few people have undue influence on a group of stocks. This can also happen on the upside giving people a false sense of security. Long term revenues leading to earnings rule the day.
There is a chart in one of the early 2014 presentations that gets OXY shares outstanding down to about 680 million shares from current 775 million today. The starting number was actually higher because they have been buying. They should eventually get their because the share price is lower than they expected due to the oil price. They have also not disposed of all the assets that they are trying to sell and on which the chart was based.
I think the restructuring continues through 2015 before we see the low in shares outstanding.
Same old story, when momentum players get spooked they sell in a flash. Thinking is that the Gilead issues will spread to the rest of the industry. It is not individuals selling REGN, but hedge funds selling the ETF's in which REGN is a big percent. Find one of those ETF's and chart it against CELG, BIIB, AMGN, GILD & REGN and they pretty much all track.
Actually he said to lighten up until you know if the Gilead issues spread. The problem with these stocks is that the few momentum players here can kill them quick and ETF's are poison because you cannot separate the wheat from the chaff. I actually sold some, taking some real good profits. The run up in both celg & regn had gotten my % of portfolio way beyond what I want it to be. Trimmed a little around the edges.
I believe the world is producing around 93 million barrels of oil per day. That includes all the heavy stuff and I think NGL's. A much smaller sub set is light sweet crude. During the course of a year, if no new wells are drilled, we lose about 5.5 million barrels a day from reservoir depletion. I had seen an article a few years ago when we were at 87 million barrels and the depletion was 5 million barrels so 5.5 million I saw in a recent article makes sense. Many drillers have already cut back. Continental has apparently cut CAPEX by 40%. Oil found in tight rock also depletes faster than conventional wells. Other countries do not have the capital to keep drilling and the Saudi's are maxed out. I would say that Pickens in dead on.
As far as PSX, it should never have come down this far to begin with. I added some today and have been buying KMI. I trimmed from my non-dividend paying Biotechs to fund the purchases. I agree that this is a great opportunity. You also get chemical, specialty lubricant and natural gas midstream exposure.
Announced the same day they closed on the Wheelabrator sale. They can always borrow more money if they have a significant acquisition to fund.
Yes it is the momentum players who are in those ETF's. At the first sign of any negative news in the core business of an ETF they are selling, shorting etc.
There are a number of reason for the rise. They just had their analyst's day, and I did since I am retired, the report on operations was up beat. More importantly they have reiterated their efforts to change the mix of debt to equity. For a company with a market cap of $107 billion, less than $8 billion in debt is not very much. Plus debt is less than 2X levered free cash flow. In essence they will be lowering the cost of capital my selling bonds at 70 year or so lows and buying back stock. Besides the rise in earnings per share the number of shares will be reduced over and above what they are already doing.
I think that this is now baked into the stock as the PE is now about 2X the growth rate, which is starting to stretch it. Even the analysts' highest estimates for next year are not much higher than the norm. We would need some big upward estimate in GDP growth outside of the US to move this stock a lot higher.
Co announced that the European Medicines Agency's (EMA.TO) Committee for Medicinal Products for Human Use (CHMP) has adopted a positive opinion for continuous oral treatment with REVLIMID in adult patients with previously untreated multiple myeloma who are not eligible for stem cell transplantation.
The CHMP reviews applications for all 28 member states in the European Union, as well as Norway, Liechtenstein and Iceland. The European Commission, which generally follows the recommendation of the CHMP, is expected to make its final decision in approximately two months.
If approval is granted, detailed conditions for the use of this product will be described in the Summary of Product Characteristics, which will be published in the revised European Public Assessment Report.
"Acie's impressive financial background with larger publicly traded oilfield services companies, including his extensive knowledge of public company operations, financial reporting requirements, financial auditing standards and M&A and divestiture advisory as well as recent success at a high growth private equity-backed start up, were requisite qualifications for a new Chief Financial Officer," commented Matt Flemming, Chief Executive Officer of HII Technologies. "As we continue to grow both organically and through accretive acquisitions, we believe Acie's experience managing the financial strategy of high growth multiple divisions at previous oilfield services companies will serve our firm and its shareholders well," continued Mr. Flemming. "Further, we expect the segregation of the Chief Executive Officer and Chief Financial Officer duties will strengthen our internal controls and procedures."
The Company's board of directors permitted Mr. Palmer to purchase $50 thousand of HIIT restricted common stock directly from the Company on his start date.
Things must be looking up that we can afford to fill out the staff needed to become a real company.
HOUSTON, TX--(Marketwired - December 15, 2014) - HII Technologies, Inc. (HIIT) ("HII Technologies" or the "Company"), an oilfield service company focused in frac water management, oilfield power and safety services headquartered in Houston, Texas, today announced the hiring of Acie Palmer, CPA as the Company's new Chief Financial Officer (CFO). In connection with Mr. Palmer's appointment as CFO, Matt Flemming resigned as the Company's CFO. Mr. Flemming continues to serve as the Company's Chairman and Chief Executive Officer.
Acie Palmer has over 30 years of management experience including strategic financial planning and analysis, treasury management, capital raising, and operations in several industries including direct experience in the oilfield services industry ranging from startup organizations to larger publicly traded companies generating $1.8 billion in annual revenues.
Most recently, Mr. Palmer was the Chief Financial Officer for Certus Energy Solutions, a private equity-backed oil country tubular goods (OCTG) startup that successfully grew rapidly from its inception in 2013 and capitalized with approximately $75 million in debt and equity during his tenure. Previously, Mr. Palmer held positions ranging from Vice President of Operations, Corporate Assistant Treasurer and Director of Planning and Analysis at Key Energy Services (KEG) and Division Controller at Basic Energy Services Inc. (BAS). Mr. Palmer is a certified public accountant, licensed in Texas. In addition, Mr. Palmer received Key Energy Services' 2011 Chairman's Award For Outstanding Performance.
You have to look at the ETF's, especially the XLE, VDE & Ige which have the highest concentration of PSX stock. PSX is around 80 ETF's but those three with about 2.5% PSX are heavy traders and are energy only and ruled by the big oil stocks. I think 17% of the XLE is XOM. If you do a one month chart comparing PSX and XLE they are both down the same 11%. Same thing today. PSX started higher and drifted down with the XLE. MPC the marathon oil refining spin off is down over 12%. I said this in other posts, these refiners for the most part are at the mercy of the big energy ETF's. This is why investing in individual stocks has become so difficult. Hedge funds and other fast change artists are momentum players, do a lot of shorting and hedging and we get screwed. I believe over the long pull (and I have over 40 years of investing experience as an individual investor) you will do better owning only the best stocks.