CELG was at the Raymond James Institutional Investors Conference yesterday. The webcast is on the investors portion of their website. Based on how things are going short term and all the products in the pipeline they are projecting $13/share earnings by 2020. So if 16 - 18x earnings it would yield a $210 - $235 stock price. I believe this is using current shares outstanding. With their cash flow they should be able to buy back significant shares.
I am not a trader so my shares should at least double by then. Anyway their is a lot of good info jammed into a 31 minute webcast. Anyone who is long should listen.
There should be good news on this project all year as it is being cut over in stages into 2017. In addition, as oil prices increase the price CVX gets for gas also goes up as the contracts are pegged to the price of Brent.
Based on what you said above I found the following info:
India's state-owned Gail and Japan trading firm Sumitomo have signed up to use Dominion's $3.5 billion LNG plant that will liquefy U.S. gas for shipment in tankers overseas by 2017.
Under the agreements, Gail and Sumitomo will source the gas themselves and pay to use the plant, which will have the capacity to produce 5.25 million tonnes per year (mtpa) of LNG. Both companies will be able to export 2.3 million tonnes per year.
Sumitomo will sell the LNG onto Japanese utilities Tokyo Gas and Kansai Electric Power.
The company intends to finance construction using a combination of debt and equity. As part of
the financing, Dominion Resources is issuing about $1 billion in a type of security that consists
of a bond and a contract obligating the investor to buy the company’s common stock in 2016.
Housing is starting to look solid. Saw video on CNBC World last night that flippers are back in the market fixing up houses to resell. Also looks like a lot of secondary cities are having house price gains. Younger people also first time owners on the rise.
Don't get cocky the oil play still has not found a direction and lots of people have been wrong down and up. Personally I own shares and am holding. I got all the shares when I bought them for the split and then reduced my risk by selling down some of the COP and buying more of the PSX. But I also own OXY and some CVX I got from the Texaco takeover. CVX is in a taxable account and I think I have received more in dividends than I paid for the shares. Tax burden would be crushing on the capital gains. Long term oil and gas will go higher. This company also has a lot of closed in gas.
It is very tough to make money trading stocks. Even the pros have trouble and most people that try do not succeed. My son works for a brokerage firm and has known traders and apparently it is an innate ability. You do not find a lot of highly educated people trading because they are used to working from books. Lot of high school educated traders who just have the knack.
Belatedly listening to 2/23 Credit Suisse Energy Summit presentation delivered by CEO (Greg Ebel) . Added 2018 as an additional year where will grow 14 cents / share. Prior to this they had just guaranteed 2016 & 2017.
Usual dog and pony show summary of business. Question concerning Buffet investment. According to Garland he has filed to buy up to 25% of the company. Will continue to return 40% of EBIDA to shareholders via dividend and stock buy backs. Reiterated that they will increase dividend at least 10% this year which would be a minimum of 6 cents per quarter. Have not increased their oil storage very much. Usually to 100 -130 million barrels in their system. Gasoline demand is good, distillate not as good and chemical demand good.
Production is starting to roll over in a number of areas. China will lose as much as 400 - 500K barrels per day. India not a big producer losing production. Mexico and Venezuela have been going down for awhile. Russia has no currency to buy outside equipment. Their production appears to have topped. US is lowest level of production since late 2014. In general oil fields lose 3 - 5% of production each year without massive amounts of CAPEX. From what I have read recently is that there is only 1 million barrels per day of over production on a scale of 95 million barrels per day. World demand is also rising. Later this year demand will exceed production and the huge inventories will start to be worked down.
I think Exxon is looking to buy properties that may adjoin their existing locations rather than whole companies. In US shale areas companies are always selling, buying and swapping to get larger blocks to work with. OXY sold their Bakken property and is buying in the Permian where they are King and have midstream assets and their own pipes to the Gulf Coast.
It is now about two weeks after the drop and we are up a point from the price when the drop occurred. It is a small cap stock and constantly has these accentuated ups and downs.
As of the February analyst's meeting EMR still had no concrete details on the disposition of Network Power. Although it will probably be a spin off it could still be a sale. At the meeting on slide 44 of Farr's Business Update presentation it states that spin or sale will occur by September 2016.
LOW has been behind HD in the professional market and has put an all court press on attracting the Pro as they refer to them. In addition, this market does not lend itself as much to buying on line but they are trying to use on line to increase sales. The key is that housing prices have come back somewhat and home owners want to put money into their homes.
They actually have very low level of debt and have been recapitalizing by adding debt and reducing equity. The debt is coming on at a time when interest rates are at rock bottom lows. The only time they have been this low since 1900 is in the 1930's and after this last financial met down. They have tremendous cash flow and based upon economic activity really cannot invest in more plant and equipment. They have increased the dividend substantially over the last few years. Organic growth is strong but masked by the strong dollar. MMM has been buying back stock during this whole market pull back. Their assessment is that the company is under valued.