What are you laughing at?? Most of their problems are related to the price of gas and the untimely spin off of the oil business. The one thing that they were good at and will serve them well in the future is that they are very good at drilling efficient wells and actually running the business operationally. In this area they are second to none. It may take them sometime to get back to where they were; however, they have the operational expertise to do it.
LOS ANGELES, Oct 18, 2013 (BUSINESS WIRE) -- Occidental Petroleum Corporation OXY -0.47% today announced the initial actions resulting from the Company's strategic review to streamline and focus operations in order to better execute the Company's long-term strategy and enhance value for shareholders.
The Board of Directors has authorized the following:
-- Pursue the sale of a minority interest in the Middle East/North Africa operations in a financially efficient manner. (See Attachment A.)
-- Pursue strategic alternatives for select Midcontinent assets, including oil and gas interests in the Williston Basin, Hugoton Field, Piceance Basin and other Rocky Mountain assets. (See Attachment B.)
-- Sale of a portion of the Company's 35-percent investment in the General Partner of Plains All-American Pipeline, L.P., resulting in pre-tax proceeds of $1.3 billion. Occidental's remaining interest in Plains All-American Pipeline, based on the IPO price, is worth approximately $3.4 billion.
"These are the first formal steps in our effort to streamline the business, concentrate in areas where we have depth and scale and improve overall profitability. Our goal is to become a somewhat smaller company with more manageable exposure to political risk," said Stephen I. Chazen, President and Chief Executive Officer. "We will continue to consider additional strategic alternatives for the Company to maximize total returns to our shareholders."
The Medieval Warm Period (MWP), Medieval Climate Optimum, or Medieval Climatic Anomaly was a time of warm climate in the North Atlantic region that may also have been related to other climate events around the world during that time, including in China and other countries, lasting from about AD 950 to 1250. It was followed by a cooler period in the North Atlantic termed the Little Ice Age. Some refer to the event as the Medieval Climatic Anomaly as this term emphasizes that effects other than temperature were important.
Despite substantial uncertainties, especially for the period prior to 1600 for which data are scarce, the warmest period of the last 2,000 years prior to the 20th century very likely occurred between 950 and 1100, but temperatures were probably between 0.1 °C and 0.2 °C below the 1961 to 1990 mean and significantly below the level shown by instrumental data after 1980. Proxy records from different regions show peak warmth at different times during the Medieval Warm Period, indicating the heterogeneous nature of climate at the time. Temperatures in some regions matched or exceeded recent temperatures in these regions, but globally the Medieval Warm Period was cooler than recent global temperatures.
The last sentence has been shown to be untrue from recent studies. The period was warmer than today and there was considerably less co2 in the air. Al Gore is a scam artist.
Companies who earnings implode, cut their dividend and participate in a commodity business, whose price is in the toilet are not going to trade at all time highs. The stock price is a product of terrible management that ruled over fifes rather than an integrated company. They sold oil assets at the worst possible time.
Now they have retrenched and actually come up with a long term strategy. now we have to let that plan play out and see if it is in fact viable. The new CEO appears to be doing all the right things. In general, I would say many of these oil and gas companies were poorly run. Just like ECA many are selling off assets that they could not use in the next 20 years never mind the near future.
Finally, natural gas liquids (NGL) are starting to firm. Propane and ethane are being exported and there are 15+ ethane crackers to be cut over in the US in the next 4 years.
They just raised it in August and based on history only make increases one time per year, in August. Ex-dividend date is tomorrow, so today is the last day you must own the stock in order to get the $0.625 payout. The yield is only 1.88% and not the primary reason to own CMI. It is the 22.6% average analyst's estimate for 2014 earnings growth and the next super cycle in engine technology. If this comes to pass their will be big dividend boosts and substantial stock buy backs into the future along with CAPEX and strategic takeovers. They have stated on their conference calls that this is their aim and that they want to reward shareholders.
Not a follower of CHK, so I am not sure what you mean. Did the sale help or hurt the price?? I do know that CHK bottomed in mid 2012 at around $13.50 and has since moved up over $25.50 with a high of just over $29. The 200 day MA also crossed over the 50 day back in February and since the bottom the stock has continued to make higher highs and higher lows. Analyst's composite estimate for next year's earnings is +30%. I am assuming you mean that ECA should take off and double form here.
$133+ is a long way from $116. Most US headquartered industrials have cut costs while continuing to spend on R&D. CMI's margins are great. Any change to the top line will have huge positive effect on both earnings and cash flow. Plus commodity costs have come down significantly across the board. Europe is also in the beginning phase of a turn around. I see explosive growth in the next 3 - 5 years for CMI and other industrial companies.
The Obama administration wants to reduce the amount of ethanol in the nation's fuel supply, acknowledging the bio-fuel law championed by both parties in 2007 is not working as well as expected.
The new proposal announced Friday is unlikely to mean much for consumers at the pump. It could, however, cut into farmers' profits for corn, the primary ethanol source.
The change would require almost 3 billion fewer gallons of bio-fuel to be blended into gasoline in 2014 than the law mandates.
Since 2007, people are driving less and fuel economy has improved.
Meanwhile, next-generation bio-fuels have not taken off as expected.
Under current plans, the amount of bio-fuel required would generate more ethanol than many engines can safely handle.
The oil industry lobbied hard for the reduction.
My note: This is good for refiners because it costs them more to add the ethanol!!!!!!!!!!!!!!!!!!!!
I feel the same way. I was looking for a second food stock to own after I sold McCormick, which is a great company but facing a lot of head winds and is very highly priced. I stumbled on to PF. The prospects looked good when i looked at the analyst's 2013 & 2014 estimates. They also beat the consensus both quarters they were public and now beat for a third time. PF pays a dividend, which I believe they will raise every year and they are constantly on the prowl to acquire more brands. Finally the market cap is only $3.3 billion, so it is possible to double or triple through organic growth and buy outs over a reasonable time period.
My other food stock is Flowers (FLO), which has split 3 for 2 two times since I bought it a few years ago.
If he wanted to diversify, OXY would have fit the bill because like COP they are restructuring. Although they are not a refiner there is a lot they can do to raise shareholder value. XOM market cap is $412 billion. It takes a lot to move that. Both COP and OXY still have assets that are none core and both have targeted operational efficiency as a way of reducing CAPEX, while drilling the same number of wells. It is amazing how lax these companies can become when not pressed for performance. They also became asset accumulators having more leasehold than they could possibly drill in the forseeable future.
Although I am a fundamental investor, I like to check the charts once in awhile. Charts give you a snap shot on how investors are thinking about the stock. Back on October 14th the 50 day moving average crossed the 200 day, an extremely bullish sign. Two weeks later, after the earnings release and the conference call the stock took off. The MACD indicator is also very strong and today we have reached a 52 week high.
A number of other industrials are starting to see a turn in Europe and in Asia. Emerson Electric, which is many parts of the industrial space, has been more positve than they have been in awhile. Maybe the electrodes group will find some traction.
Interesting. I own DDD & XONE. SSYS is another of the major players. I sold 1/3 of my DDD because it tripled since February when i bought it, so I am playing 100% with house money now. XONE is more involved with big industries and using metals. These companies spend a lot of time trying to work with new materials to expand their reach.
There is really two different things going on with 3D printing and graphene. 1. Develop products that use graphene. 2. Be able to make the product from 3D printed material.
About 15 years ago Union pacific tested this concept and rejected it at the time. The technology improvement in diesel engines did not substantially reduce pollution. You also lose a lot of flexibility because as you convert over one division at a time, those locomotives can only be moved to a division using LNG engines. There is a lot of up front cost and their were no benefits since we were already running low on conventional methane production and the implementation costs were huge. This time around the benefits are great because diesel has skyrocketed in price as more and more people use diesel as a fuel and crude is much higher.
A big safety issue is the tender, a small tank car that rides between to engines to provide the fuel needed. From what i gather you cannot store enough in the engines and keep it in the liquid state. I follow rail stocks and also am a rail fan and in one of NSC's recent presentations they showed how much more they are paying for diesel (compared to 15 years ago) and as a percent of operating expense and it is now the biggest item.
Lots of companies are taking on or replacing debt with lower rate securities. Example, Cummins is in the process of buying up some of the distributor/service centers they do not already own and nailed down $1 billion in low rate debt up front to insure that they have those low rates.
Actually day to day fluctuations can be important. I do not reinvest dividends as in a DRIP, but let all the dividends go to the money market associated with the account. As those dividends pile up, I try to deploy them in companies that I am both under invested in and ones that have the best value.
In the Hostess case, the bread products went to Flowers, who has a none union model. The drivers who deliver are independent and own the routes. Obviously Flowers does everything to help the drivers and make them rich.
Since this company was recently IPO'd it only has a 2 quarter track record paying out 18 cents each time. Unless something extraordinary happens, I think they will continue that payout for the next two quarters. Most none MLP's raise the dividend only once a year. Last quarter the declaration date was 9-11, with an X-dividend date of 9-18. The payout will be early next year.