they have expansion plans.. just not acquisitions plans.. they said they will invest more on areas where they are weaker.. That could mean lots of things..
they dulit the shares.. in a profitable company, more capital is not a bad thing.. we may own less in the company but there are more capital.. as before, share dividend is just adding more shares in the market.. It does not help the cash position of the company.. QE will most likely going to buy more debts from the EU.. if SAN buys it first, SAN will likely have more profit at the end.. that nearly 10b capital helps. every single time we had a divy, SAN drops the same exact amount.. it is pointless.
This is a game changer.. reducing divy is actually good for SAN shareholders.. Those are actually not real divy, but a way to dulit.. With the upcoming QE, SAN will do so well.. I think the capital increase is for buying more spain debts, as SAN may know the QE will rocket it..
Sentiment: Strong Buy
They were saying, it may actually be higher than originally stated 500b..
my reason to buy this also before was the debt ratio.. with high dividend and interest rate going up.. Tera's close to 0 debt makes it more attractive.. too bad.. too bad.. I hate myself.. screwed up on the trade..
but it still accounts for that.. saying CF owns 80% shares.. it means out of 18.5m shares, they own 80%.. that stills leaves 2m or so shares for us.. That 500m profit is at least 100m for shareholders.. making the market cap at around 360m for us.. still a high p/e?? or an i doing the math wrong?
U actually think Russia and China won't be strong enough to shake the world?? Putin already press the button, when he invaded Uraine. Is it a suicide button or does he have something planned?? A country leader does not act recklessly without a reason..
3rd world war is actually good for PBR. The 3rd world war will be about USA and EU against China and Russia.. the middle Asia countries will be affected.. The only country who is not involved in this wars are Southern America and since PBR has high reserves, Those country in war will not be a good bet on developping oil fields.. Oil price will spike..
so basically what you are saying is.. Eventually they will lose its shine? Does that mean whoever positioned themselves first wins this war? Mega rich tends to be steps ahead of other people.. If the risk is there and they know what is coming. Does that mean they will abandon Oil as a investment and go for those renewable energy??
Going to heavy water? which company develops such tech??
Isn't they are the same company? Even if the profit drops for CF and TNH.. They shouldn't be so much in difference??
one is 13.8b market cap and other is 1.8b in market cap.. their profit last year is 1.5b and 500m.. 3x the profit but difference is 7x the price difference?..
I have no position long or short in PBR..
Majors users of oil is from cars? Tesla and even bigger brand cars maker like FORD are trying to diversify their oil consuming cars. Ford said they will need only water as a replacement for oil in the future.. I am not sure if this is true.. but new technology now a days maybe a problem for oil.. Oil was seem as continuous commodity, but can new technology be a replacement for oil? more environmentally friendly and cheaper??
i think a fair valuation should be at least 2.5b.. valuing at 5 P/E (still low valuation).. no debts are usually valued higher..
at 5 P/E it is 135 dollars per share.. I expect a quick bounce back to 140 range..
Sentiment: Strong Buy
the trend itself is a trap.. it looked good a few days ago.. and broke below yesterday.. it is bear trap.. nice play mm..
if we crash so fast back to 6.. I will be very careful.. if we see strong support near 7.4 to 7.5 then it is heathy retrace., otherwise, run for your life.