Grey Owl Capital compares BP impact on Transocean to the salad oil impact on AXP when Buffett stepped in and put 40% of his partners money into the stock
http://www.gurufocus.com/news.php?id=106947
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Swizz,
ReplyDeleteI just picked the transocean thread because i'm showing it as your most recent article......hey any thoughts now on Al's admonition of a possible slip into October for MC 941#3??
Also, i'm wanting to invest in both petrobank and sprott - but i'm a client at both wells fargo and schwab, and since those are both U.S. brokerages........do you know whether it makes a difference if i just purchase them off the OTC market or should i try and go directly through Toronto exchange?
Lastly, i see where they have added a Jan 2013 Option for CHK - do you think the 17.50 strike, trading at roughly $6.50, looks attractive?? I think given that added year to 2012 even that CHK "should" be at least $30 a share at that point??
Cgiff
Yes on slip into October. It makes no difference to the actual value of the company, but again shows these guys are completely inept at playing the game with Wall Street.
ReplyDeleteThe difference between the OTC and TSX might be liquidity. If you can do it through the TSX and the fees aren't worse that is what I'd likely try and do.
What happens to your $6.50 option if natural gas never goes over $5 between now and then. You need to have some conviction on that because that is what will move CHK.
True, but what about CHK's imminent deal with Reliance(rumored) or someone for sure in the Eagle Ford.........and others in future? And what about the move to be more "oily?" Do you think these types of moves will enhance share price and value even if Natty gas stays depressed at roughly $4 levels? Thanks.
ReplyDelete"CHK's imminent deal with Reliance(rumored) or someone for sure in the Eagle Ford.........and others in future?"
ReplyDeleteI think they are great deals. Lease property at X and sell it at 6X. What isn't to like ?
"And what about the move to be more "oily?""
Again that is great. The question is though how significant can it be vs the largest natural gas resource base in that States. In other words that is going to take a lot of oil assets to move the needle
"Do you think these types of moves will enhance share price and value even if Natty gas stays depressed at roughly $4 levels?"
I guess what I am trying to say is that yes these are good moves and the without a doubt enhance value per share. But at $4 gas, CHK core production isn't making much money and that is a little disturbing. So for me, I need to have a view that natural gas is going to move up a bit at some point.....hard to see that right now.