Murphy Oil Makes Moves to Unlock Value...Who's Next
AH HA. As Hannibal from the A-Team would say..."I love it when a plan comes together." In keeping with my new plan of buying things earlier rather than later and adding more of the positions to my real portfolio that I normally would have only bought in CAPS I added a fairly small position, but still a position, in Murphy Oil (MUR) when I read about Third Point's activist involvement in the stock a could of weeks ago. The other day MUR shot up nearly 9% on the news that it will spin-off its downstream operations. Hooray.
Murphy Oil to Spin Off U.S. Downstream Unit
In the day or two since, MUR has pulled back slightly. I still think that it has room to run as it moves closer to completing these special situation transactions.
There seems to be a theme of companies in the oil and gas sector attempting to unlock value in their stocks by selling or spinning-off assets lately. Here's an interesting new article on the subject. The piece quotes an analyst from Deutsche Bank stating that he believes that the next company to unlock value like this could be Hess (HES) or Occidental Petroleum (OXY). My money is on Hess, not literally...yet but I'm watching. Hess is a little bigger than Murphy, but still not so gigantic that an activist couldn't shake things up there if they wanted to. OXY just seems too large to me to cave into an activist, but who knows. Plus it might just initiate similar actions on its own accord.
Who’s next after Murphy Oil agrees to spinoff
Thanks for reading everyone. Even though I haven't been blogging much lately, I still have been making a ton of CAPS picks...and I write a pitch for every single one that I make. There's tons of new, dare I say great :), investment ideas there all the time. My CAPS account has been on a tear lately too, my score rose over 20% last quarter.
Have a great evening!