|Bid||86.18 x 900|
|Ask||86.20 x 1000|
|Day's Range||86.07 - 86.58|
|52 Week Range||69.02 - 105.61|
|Beta (3Y Monthly)||1.74|
|PE Ratio (TTM)||9.48|
|Forward Dividend & Yield||8.62 (9.98%)|
|1y Target Est||101.73|
It was a good month for oil companies like Vermilion, Suncor, and Noble Energy. Here's what happened and what it could mean for the future.
When oil was discovered in Ohio, way back in the 1870s, refineries could not process it. Ohio oil had different chemical properties than the Pennsylvania oil refiners were accustomed to. Finding a solution, and keeping it to himself, helped John D. Rockefeller gain control of the resource and create the Standard Oil empire. His other secret weapon? Pipelines. Pipelines transport oil at a lower cost, and with greater safety, than anything else. Building and controlling the pipeline networks gave Standard Oil control of the market. Most U.S. oil majors are descended from the Standard. Exxon Mobil (NYSE:XOM) originally combined Standard Oil of New Jersey with a Texas oil producer, Humble Oil & Refining. XOM was originally Standard Oil of New York. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Something like that Ohio problem is hitting refiners now, and oil majors are taking advantage. That's why, despite low oil prices, oil stocks Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B). XOM and Chevron (NYSE:CVX) all reported big quarterly profits last week. ### Oil Prices Vary Oilprice.com lists hundreds of different grades of oil. Most trade within a narrow range, based either on what's called Brent Crude, which comes from the North Sea and is considered a "world" price, or West Texas Intermediate, which is considered the "U.S." price. But it's not that simple. * 7 Stocks That Won Super Bowl Sunday Depending on pipeline capacity, and the chemical properties of the oil, the price can vary considerably. What's called "Western Canada Select," bitumen mined in Alberta and then mixed with natural gas liquids for transit, sells in the low-40s per barrel. "Bonny Light" oil from Nigeria, easily refined, collected offshore, transported by tanker and part of OPEC, sells for over $63.50 per barrel. There are even big opportunities in domestic oil. High-sulfur "sour" oils from Texas usually often trade at under $40 per barrel, but those prices are rising as refiners scramble to replace Venezuela supplies creating vast trading profits. Then there's the fact that the prices quoted may not be accurate. The industry and the Department of Energy have recently differed by as much as 400,000 barrels on the amount of U.S. oil in stockpiles. ### Take It Away International oil prices vary based on the cost of transport. Tighter supplies from OPEC can buoy U.S. oil prices, but only if traders can find tankers to transport it to where it's needed. Early in this decade, when oil prices were high, trucks and trains were needed to get supplies from North Dakota's Bakken formation. It was a scramble Rockefeller himself would have detested, but the result was that Bakken oil traded at a big discount to Texas oil, even though the products were nearly identical. Today, supplies in the Permian have overwhelmed the pipelines and, until new pipelines are completed, it's this "good" oil that's trading at a discount. ### The Oil War There is another opportunity for the majors, which is the use of oil as a weapon of war. The Trump Administration is now using oil as a weapon against Iran and Venezuela. Europe can sidestep the Iranian sanctions with special payment mechanisms but the problem is more acute in Venezuela, where getting oil out of the ground requires naphtha, about 90,000 barrels each day, to dilute the oil and let it flow. Venezuela had been getting naphtha from the U.S., mainly from those Gulf Coast refineries. Lack of naphtha could also take Venezuela off the market entirely until the crisis is past, which is what the Administration wants. * 10 Cold Weather Stocks to Heat Up Your Returns Whatever the solution, taking Venezuela oil out of the market also takes some U.S. refineries out of it. Higher gas prices and higher refinery profits may follow. ### The Bottom Line on Oil Stocks Getting around sanctions and transport bottlenecks is more profitable today than ever before. Chinese oil refiner China Petroleum & Chemical (NYSE:SNP) learned this the hard way last quarter. It lost $688 million during the quarter because it's just a refiner, without access to the supplies, pipelines and tankers that can help it arbitrage lower prices. That's why the big winners among today's oil stocks are the oil majors, especially the U.S. majors, and they are your best oil stocks to buy right now. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, he did not hold a postiion in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 F-Rated Stocks That Could Break Your Portfolio * 5 Fintech Stocks to Buy As This Mega Trend Gains Steam * 10 Cold Weather Stocks to Heat Up Your Returns Compare Brokers The post The Oil Majors Are the Only Oil Stocks to Consider Now appeared first on InvestorPlace.
Sinopec blamed the losses at its Unipec unit in part on “inappropriate hedging techniques” and said it closed its positions after discovering the problem. Oil plunged sharply in late November and December, prompting speculation that Unipec may have contributed to the drop as it unwound contracts. The Unipec blunder, compounded by other charges, prompted Sinopec to release Friday a full-year net income estimate that’s below expectations, according to analysts at Sanford C. Bernstein & Co. and Bloomberg Intelligence.
BEIJING/SINGAPORE (Reuters) - Sinopec Corp said its trading unit Unipec lost 4.65 billion yuan (525.64 million pounds) on crude oil hedging in the fourth quarter, one of China's largest derivatives trading losses in nearly a decade. Asia's top refiner, which said the loss had pulled down its fourth quarter profits, suspended Unipec President Chen Bo last month, citing unspecified trading losses. State-owned Sinopec still managed to report its best annual results since 2013 on Friday.
Jan 25 (Reuters) - China Petroleum & Chemical Corp : * SAYS PRELIM 2018 NET PROFIT UP 22.0 PERCENT Y/Y AT 62.4 BILLION YUAN ($9.23 billion) * SAYS 2018 OIL AND GAS PRODUCTION 451.4 MMBOE, UP 0.59 PERCENT ...
An economic slowdown will curb China’s appetite for gasoline this year. Chinese demand has been a key support for oil prices this decade. Import volumes rose at double-digit percentages in 2017 and 2018, as car ownership and industrial use both grew.
SINGAPORE/HONG KONG (Reuters) - Sinopec Corp, Asia's top refiner, may have a hard time finding buyers for a multi-billion-dollar stock offering of its fuel marketing arm because of investor pushback against higher valuations amid tepid equity markets. Sinopec won final regulatory approval in December for the listing of its marketing unit in Hong Kong, said two people with knowledge of the matter. Hong Kong's Heng Seng Index has dropped 19 percent since it hit a record in January 2018.
China’s state-run energy giant is making a new approach to clinch a $3 billion deal for more development of an Iranian oil field, seeking to take advantage of waivers allowed under U.S. sanctions as two European nations have ended crude purchases, according to people familiar with the matter. The moves highlight the divergent ways nations are reacting to temporary exemptions from U.S. sanctions on Iran. China’s decision to pursue lucrative deals with Tehran and deepen its presence in Iran contrasts with a retreat by Italy and Greece stemming from fear that financial transactions and physical trade with Iran have become too difficult.
While December was the worst in decades, it appears the exact opposite is true of January so far. What went down dramatically is now going up in similar fashion. Much of the renewed optimism for stocks to buy comes from the fact that the game of trade chicken that the U.S. and China have been engaged in isn't helping either country. I remember an old cartoon about the cold war that had two people standing knee-deep in gasoline. One person had two matches, the other five. The same self-destructive kind of thing is happening with the trade war, and finally, both sides seem to understand. At least, the market is anticipating that they do. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * InvestorPlace Roundup: The Hottest Stocks in the Market Today Below are 10 A-rated stocks that the smart money is piling into. That means all score A ratings for Momentum in my Portfolio Grader, and there is significant activity in buying by institutional investors. ### ServiceNow (NOW) ServiceNow Inc (NYSE:NOW) is the next iteration of CRM-focused systems, but it is all cloud-based. Also, it has a deeper amount of architecture and design ability that many customer resource management systems don't have. It has a solid $34 billion market cap, which means that it has a sizable enterprise-level client base and it is no longer and spry up-and-comer. It is a respectable provider of cloud computing solutions. The stock is up 35% in the past 12 months, and it is having a solid January so far, up 5%. If the economy stays strong and the various trade wars get worked out, NOW has plenty of potential in and beyond 2019. ### China Petroleum & Chemical Corp ADR (SNP) Source: SarahTz Via Flickr China Petroleum & Chemical Corp ADR (NYSE:SNP) is better known in the West as Sinopec. It's the largest oil and petrochemical products supplier in the world. It's the second-largest oil and gas producer in China, the largest refining company and the second-largest chemical company in the world. And its total number of gas stations put it at No. 2 in the world. Suffice it to say, it's a major integrated energy company. And the crazy thing is, it only started in 1998. Most massive energy companies hark back to exploration and production in the 1800s. Sinopec has grown massively since its founding and it has now come to experience a downturn in the energy patch for the first time since its ascent. And the volatility is still present. * 10 Stocks You Can Set and Forget (Even In This Market) In November it was at an eight-month low, but so far in January, SNP is up nearly 10%. And it's delivering a solid 6% dividend. ### Veeva Systems (VEEV) Source: Shutterstock Veeva Systems Inc (NYSE:VEEV) has a unique niche that will pay off handsomely over the coming years. Don't get me wrong, it's doing well now -- the stock is up 70% in the past 12 months and 11% in 2019 -- but it is becoming the major player in a niche that will only grow. It specializes in creating cloud-based software solutions for the life sciences industry. That may not sound very sexy, but when you consider the graying of the populations in developed nations, the demand for better healthcare in China, India and beyond, you have a lot of potential. And VEEV is the top player. ### Ecopetrol SA ADR (EC) Source: Shutterstock Ecopetrol SA ADR (NYSE:EC) is the largest energy company in Colombia. While that may not sound incredibly impressive, Colombia has a lot of major exploration and production (E&P) companies there. What's more, given the implosion of major South American producer Venezuela and the political turmoil in Brazil, Colombia is a steady, reliable energy partner. In the past, E&P was tough because there was a low-intensity civil war going on and a significant drug trade that was all happening in the same parts of the country. But now that's past, and the rebels are negotiating with the government. The government is more stable and predictable and energy prices are on the rise. All good news for EC. * 7 Stocks to Buy That Are Ready for Takeoff Up 16% since 2019 began, it also offers a respectable 3.5% dividend. ### Abiomed Inc (ABMD) Source: Shutterstock Abiomed Inc (NASDAQ:ABMD) is a stock that I have been singing the praises of for a while now. It is a specialized company that is the leader in a technology that is going to increase in demand globally for many years to come. What's more, its $15 billion market cap means it can grow organically or, it is the perfect size for a major healthcare firm to snap it up at a significant premium and just plug it into its broader scope of products. Either way, investors will be well rewarded. ABMD make the smallest heart pump in the world. And given the fact that developed nations are seeing baby boomers gray, this type of device is only going to grow in demand. ABMD stock is up 51% in the past 12 months and will move even faster as the global economy recovers. ### Tableau Software (DATA) Source: IDelearn via YouTube Tableau Software Inc (NASDAQ:DATA) as you may have guessed by its ticker symbol specializes in business intelligence and data analytics software. Basically, that means you can take your company's data and create data visualizations and explore data in a number of ways that previously would have taken experts to build and deliver. It's a niche company that offers a powerful tool for enterprise and smaller businesses looking to get more from their data and allow their people to understand more about the numbers. * 7 Stocks to Buy That Are Run By Billionaires Up 60% in the past 12 months, it's off to a slow start this year, but has big prospects. ### Twilio (TWLO) Source: Web Summit Via Flickr Twilio Inc (NYSE:TWLO) is a cloud-based communications platform built for developers. One of the new forms of delivering services to consumers is with application program interfaces (APIs). Here's a metaphor to help you understand the power of APIs in our new app-driven world. Say you're a customer in a restaurant. The API is the server and the company you are communicating with is the chef. The server asks for your order. You tell them, and they deliver it to the chef. When your request is ready, it comes to you. This is how all apps work and TWLO is one of the biggest players in this space. Up a whopping 275% in the past 12 months, it has plenty of room to grow. ### Sarepta Therapeutics (SRPT) Sarepta Therapeutics Inc (NASDAQ:SRPT) is a biopharmaceutical company that specializes in rare neuromuscular diseases (like Duchenne Muscular Dystrophy, or DMD) using gene therapy and other therapeutics. The stock was up 90% in the past 12 months and is up 10 already in 2019. Much of that is about its strong earnings and the progress it's making on its new drugs. It's expecting to bring three RNA-based drugs to market in 2020 and capture about 30% of the DMD market. * 7 Stocks at Risk of the Global Smartphone Slowdown There's a growing demand for effective drugs that can treat chronic diseases, SRPT is well positioned for growth or a buyout at a significant premium. ### Zendesk (ZEN) Source: OFFICIAL LEWEB PHOTOS via Flickr Zendesk Inc (NYSE:ZEN) is part of the new boom in omnichannel customer service support. Essentially, that means ZEN provides an online platform to integrate a company's customer service so that it is available for all departments to see and follow up on. Nowadays there are numerous channels for customers and potential customers to use for feedback, follow-ups, queries, etc. ZEN provides companies with an efficient way for a customer's email query to get linked to their interaction with a chatbot and the phone call they made the other week. Customer resource management is a big deal and numerous companies are now carving up that market and disrupting it. ZEN is succeeding in doing just that. Up 66% in the past 12 months, it's off to a strong start in 2019 as well. ### Match Group (MTCH) Source: Bixentro via Flickr Match Group (NASDAQ:MTCH) is the parent company of some of the most well-known sites on the web. It owns dating sites Tinder, Match, PlentyOfFish, Meetic, Pairs, Twoo, OurTime, BlackPeopleMeet and LoveScout24. It also has a division that is focused on education services like test preparation, academic tutoring and college counseling services. Its products are in 42 languages and available in 190 countries. The power of this focused social media business is the fact that it has hundreds of millions of people that use or have used its services and that means it has huge amounts of data to cross-promote its own services as well as rent that data to others. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors Up 39% in the past 12 months, this social matchmaking company is much closer to its beginnings than its end. Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 10 A-Rated Stocks the Smart Money Is Piling Into appeared first on InvestorPlace.
This Chinese energy giant took a nosedive in the final month of the year, right along with the price of oil -- but don't forget about this key issue
I sometimes screen for companies that are outperforming 20-year high-quality market corporate bonds in terms of a higher earnings yield. Warning! GuruFocus has detected 2 Warning Signs with SIRI. Toyota Motor Corp. (TM) has an earnings yield of 13.9%.
Jan 4 (Reuters) - China Petroleum & Chemical Corp : * SAYS IT IS EVALUATING IMPACT OF THE LOSSES DERIVED FROM TRADING ARM UNIPEC'S OIL TRADES * SAYS EXTERNAL AUDITOR HAS STARTED THE REVIEW * SAYS IT AND ...
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and […]
Cloudera, China Petrol, Meet Group, Ribbon and AudioEye highlighted as Zacks Bull and Bear of the Day
ZHOUSHAN, China/SINGAPORE (Reuters) - China's port city of Zhoushan is planning to challenge Singapore's dominance of the multi-billion dollar shipping fuel industry, relying on proximity to some of the world's biggest ports and Beijing's support to give it an edge. The port facilities in the cluster of islands around Zhoushan have annual marine fuel sales of 3.6 million tonnes, less than a tenth of the record 50.6 million tonnes of shipping or bunker fuel Singapore sold in 2017. Zhoushan, though, was ranked fourth in global container traffic in 2016, according to the World Shipping Council, and it sits 150 km (90 miles) from the world's biggest container port at Shanghai, and within a day's voyage of other major ports including Ningbo and Nanjing.
China’s November oil imports hit a record high of 10.48, but the growing demand could backfire if Washington and Beijing can’t agree on a trade deal