May 19, 2009 –
I admit to being more that a little surprised at the lack of upward pop in Sadia's ADRs this morning. The terms of the announced merger with PDA will give SDA a 32% control stake in the new merged company, Brazil Foods SA. Currently, the market cap of SDA stands at 11.2% of the combined market cap of the two companies. Either PDA has to come way down, or SDA has to go way up to get to 32%.
May 18, 2009 –
Golden opportunity in oil and gas. Overproduction, historically the greatest danger to oil and gas companies, is less of a threat today. If it was going to happen, it would have at $150 oil. But, it didn't which is a major indicator that we are at, or close to, peak production. Competitive alternative energies are still years away. With companies like XOM setting the pace by buying back shares and paying dividends, we're entering a golden age for oil and gas investors. The economy can't stay dormant forever. When it returns to growth (2010), oil and gas companies will be cash cows for years to come. [more]
November 13, 2008 –
Energy and commodities are getting cheaper. That adds immediately to companies' bottom lines, making further layoffs less necessary. That will create the stability in the job outlook that lenders need to see before credit will become widely available again. Consumers will feel a little less strain, too, as gas prices have fallen enormously. [more]
November 03, 2008 –
That's the proclamation that now allows European banks to sequester troubled assets, hold them to maturity, and avoid having to mark them to market prices. That should help the current crisis by reducing banks' asset write-downs, thereby improving their abiblity to lend. However, long-term it could hurt banks' performance and increase risk to the system by allowing them to overvalue bad assets. [more]
October 29, 2008 –
I'm still holding an overbalance in oil & gas companies: [more]
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