Despite my disdain for energy stocks, I know that you can make sizeable profits from them. I've also learned that these are stocks that you can't marry... Read More
Despite my disdain for energy stocks, I know that you can make sizeable profits from them. I've also learned that these are stocks that you can't marry... Read More
With gold prices at record highs and spending on the rise, I think it’s only a matter of time before the quality junior miners gain even more steam. Read More
With gold prices at record highs and spending on the rise, I think it’s only a matter of time before the quality junior miners gain even more steam. Read More
You can definitely make a killing with gold miners, but they do have their drawbacks... That's why this unique type of company may be a better option for investors... Read More
You can definitely make a killing with gold miners, but they do have their drawbacks... That's why this unique type of company may be a better option for investors... Read More
Do I think this stock can eventually recoup these losses? Yes. But that’s not the right question. The better question is whether this cash could be better deployed elsewhere... Read More
Do I think this stock can eventually recoup these losses? Yes. But that’s not the right question. The better question is whether this cash could be better deployed elsewhere... Read More
Any business can crank out hefty profits when conditions are favorable. The true test is how well it performs when the operating climate cools. As a group, energy stocks underperformed during the bull market. That’s no secret, given the persistent weakness in oil prices. The price of benchmark West Texas Intermediate (WTIC) crude was once above $100 per barrel in 2014. After falling to the low $30s by 2016, prices have since only recovered to the mid-$60s. You can see how this affected stocks in the sector, as represented by the SPDR Energy Select Sector ETF (NYSE: XLE),… Read More
Any business can crank out hefty profits when conditions are favorable. The true test is how well it performs when the operating climate cools. As a group, energy stocks underperformed during the bull market. That’s no secret, given the persistent weakness in oil prices. The price of benchmark West Texas Intermediate (WTIC) crude was once above $100 per barrel in 2014. After falling to the low $30s by 2016, prices have since only recovered to the mid-$60s. You can see how this affected stocks in the sector, as represented by the SPDR Energy Select Sector ETF (NYSE: XLE), on the chart below. This is exactly what makes a company like Phillips 66 (NYSE: PSX) so special. We’re up more than 54% (with dividends reinvested) on the holding over at The Daily Paycheck. That not only blows the sector out of the water, but also the entire market. We just got a glimpse of the kind of operating expertise necessary to pull that kind of performance off – and why I think it’s still a “buy” today. Inside The Numbers The company's core refining margins slipped to $11.18 per barrel… Read More
It’s one of the biggest deals in the oil business in years. The question, of course, is whether shareholders will be happy with the end result. The good news: now that the deal is consummated, we’re about to find out. I’m talking, of course, about Occidental Petroleum’s (NYSE: OXY) recent acquisition of Anadarko Petroleum. The Case For OXY For those who may have missed the news, Occidental finalized its acquisition of Anadarko on August 8th. I covered the protracted bidding war between Occidental and Chevron in this piece back in May. In it, I discussed Warren Buffett’s financing arrangement with… Read More
It’s one of the biggest deals in the oil business in years. The question, of course, is whether shareholders will be happy with the end result. The good news: now that the deal is consummated, we’re about to find out. I’m talking, of course, about Occidental Petroleum’s (NYSE: OXY) recent acquisition of Anadarko Petroleum. The Case For OXY For those who may have missed the news, Occidental finalized its acquisition of Anadarko on August 8th. I covered the protracted bidding war between Occidental and Chevron in this piece back in May. In it, I discussed Warren Buffett’s financing arrangement with Occidental, which helped sweeten the pot and seal the deal. Here’s what I said about the arrangement: Occidental, one of the portfolio holdings in my High-Yield Investing premium newsletter, has since come forward with an offer of $76 per share, or $38 billion. That’s not only more generous than Chevron’s $65 bid, but it also has a higher cash component (50% versus 25%). While Anadarko has rebuffed previous advances from Occidental, in part because of concerns that OXY shareholders might balk, it has no choice but to seriously consider this offer. So how does Warren Buffett fit in? Well,… Read More