Thursday, January 31, 2013

Activism Moves North of the Border

Sandridge, Chesapeake and Hess have all been targets of activist shareholders.

Now we have a little guy (TriOil) become a target for a shareholder who wants value to be realized.

It is nice to see some confirmation that Petrobakken was doing good things by amassing a 17% stake in TriOil prior to this pop.  TriOil released a comment (details below) about both Petrobakken's buying of shares and the activist investor.

A sale of the company should provide another data point for valuing Petrobakken's Cardium acreage which gets little respect.

CALGARY, Jan. 31, 2013 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Company" - TSXV:TOL) confirms that onJanuary 30, 2013 it received a letter from Andylan Capital Strategies Ltd. ("Andylan") requesting various initiatives be undertaken by TriOil as set forth in the Andylan press release dated January 30, 2013 (the "Andylan Letter").  TriOil advises that its Board of Directors (the "Board") will review the Andylan Letter and will take such steps as the Board determines to be in the best interests of the Company and its stakeholders.  TriOil will provide an update to the market in that regard in due course.
Furthermore, in respect of the recently announced purchase by PetroBakken Energy Ltd.("PetroBakken") of 11,050,330 common shares of TriOil, which represents approximately 17.3% of the total issued and outstanding common shares of TriOil on a non-diluted basis, TriOil views this investment by PetroBakken in TriOil as validating TriOil's ongoing exploration and development activities and strong operational positions in two top-tier light oil resource projects in TriOil's core areas of Lochend and Kaybob, Alberta.

What Canadian Value is Watching / Reading

Marc Faber Thinks That at Some Point Markets Will Punish Central Bankers for Their Actions -

Kerrisdale Capital Makes the Bull Case for Herbalife -

Gates Foundation - Annual Letter from Bill Gates -

Activist Sees $126 As Possible For Hess

Current share price in the $60s, so plenty of upside if Elliot is correct:

Tuesday, January 29, 2013

McClendon Is Leaving Chesapeake!


Aubrey K. McClendon to Retire from the Company on April 1, 2013
Board Announces that its Extensive Review of Alleged Conflicts of Interest and Other Matters Involving McClendon Has to Date Found No Improper Conduct, Final Report to be Completed in Mid-February
OKLAHOMA CITY--(BUSINESS WIRE)--Jan. 29, 2013-- Chesapeake Energy Corporation (NYSE:CHK) today announced that its Co-founder, Chief Executive Officer and President, Aubrey K. McClendon, has agreed to retire from the company on April 1, 2013 and will continue to serve as Chief Executive Officer until his successor is appointed. Mr. McClendon, 53, has served as Chesapeake’s Chief Executive Officer since the inception of the company in 1989 and served as Chairman of the Board from its founding until 2012.
Archie W. Dunham, Chairman of the Board, stated: “Over the past 24 years, Aubrey McClendon has created one of the most valuable and innovative companies in the energy industry. Under Aubrey’s strong leadership, Chesapeake has built an unmatched portfolio of natural gas and oil assets in creating one of the world’s leading energy companies. He has been a pioneer in the development of unconventional resources, and he has also been a leader in the effort to make the United States energy independent. However, as the company moves towards more fully developing the value of its outstanding assets, Chesapeake is at an important transition in its history and Aubrey and the Board of Directors have agreed that the time has come for the company to select a new leader. The Board will be working collaboratively with Aubrey to make a smooth transition to Chesapeake’s next Chief Executive Officer.”
Mr. Dunham continued: “Going forward, the company will strive to continue as a low cost producer of oil and gas while further enhancing and strengthening its balance sheet. Capital allocation and operating decisions will be made with the goal of prudently growing the company’s intrinsic value per share for the long-term benefit of its shareholders. By forging ahead with a new Chief Executive Officer, the company’s strong management team and talented employees will continue to develop the industry’s best assets to create substantial value for shareholders and themselves in the years ahead.”
Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said: “Over the past 24 years, I have had the privilege of developing Chesapeake into one of the world’s premier energy companies. It has been an honor to work with my outstanding management team and the company’s 12,000 very talented and dedicated employees. I am extremely proud of what we have built over the last quarter of a century, and I am confident that Chesapeake is in a great position to continue to grow and achieve great success in the future as it realizes the full value of its outstanding assets. While I have certain philosophical differences with the new Board, I look forward to working collaboratively with the company and the Board to provide a smooth transition to new leadership for the company.”
The Board expects to release the results of its previously announced review of the financing arrangements, and other matters, between Mr. McClendon (and the entities through which he participates in the Founder Well Participation Program) and any third party that has had or may have a relationship with the company in any capacity, in its earnings announcement scheduled for release before market open on February 21, 2013. The Board’s extensive review to date has not revealed improper conduct by Mr. McClendon. The Board and Mr. McClendon’s decision to commence a search for a new leader is not related to the Board’s pending review of his financing arrangements and other matters.
The Board has retained Heidrick & Struggles to assist the Board in its search of Mr. McClendon’s successor. The Board also intends to consult with Mr. McClendon in connection with this search. The search process will include a full review of internal and external candidates.
During this interim period, Mr. McClendon will work closely with Steven C. Dixon, Chief Operating Officer, and Domenic J. Dell’Osso, Jr., Chief Financial Officer, to transition certain day-to-day management responsibilities in advance of the completion of the search process for the new Chief Executive Officer. The company and the Board are committed to its current drilling program with respect to its existing $6.0 billion drilling and completion budget for 2013, its ongoing asset sales program and intention to reduce the company’s long-term debt.
Mr. McClendon will resign from the Board of Directors at the time his successor is appointed and will receive his full compensation and other benefits to which he is entitled in accordance with the terms of his employment agreement. Mr. McClendon will continue to be an important partner with the company given his stock ownership as well as his interests in certain of the company’s wells in connection with the Founder Well Participation Program, which will terminate on June 30, 2014

How Chesapeake Sold $12 Billion In Assets And Still Increased Its Debt!

A look at Chesapeake's struggle with low natural gas prices:

CIBC Whistler Investor Conference Webcasts

Friday, January 25, 2013

What Canadian Value Has Been Writing

We are always looking for ideas for new articles, if you would like to have your company featured let us know (

What Canadian Value is Watching / Reading

Mohnish Pabrai - What I Learned While Having Lunch with Warren Buffett -

Ackman Points Out a Bit of Hypocrisy in Icahn

Marc Faber Agrees with George Soros That Europe Has Been Stabilized -

Sandridge Energy

George Soros Sees Potential for a Currency War -

Jim Grant - Bonds Are the Wrong Asset Class to Invest in Today -

Dan Loeb Shorts Nu Skin

A "mirror" of Herbalife:

Ackman vs Icahn

Insulting each other on television.  Unbelievable...what classy guys!

Thursday, January 24, 2013

Thursday, January 17, 2013

What Canadian Value Is Watching / Reading

Loews Value Investing CEO Jim Tisch

Value Investing Legend Michael Price - Thinks the Retail Investor Is Ready to Believe in Stocks Again

Banking Guru Tom Brown Thinks Bank of America Is Significantly Undervalued

Activist Investor Mount Kellett Sends Second Letter to Sandridge Energy

Value Investing Legend Michael Price - Thinks the Retail Investor Is Ready to Believe in Stocks Again

Fairholme Presentation On Bank of America

Barron's Drilling For Deep Value With Ensco

Is Chesapeake Really Selling the Haynesville?

How can this not be the worst moment in time to do so?

Chanos Handicaps The Herbalife Battle Between Ackman and Loeb

Tuesday, January 8, 2013

Stock Ideas From Ariel's John Rogers

What Kodiak Might Fetch in a Takeover

Some chatter this week about US Bakken producer Kodiak Oil and Gas getting taken out.  We have a look at what a reasonable price might be in this Seeking Alpha piece:

Wayne Gretzky Writes A Financial Advice Column

"Thankfully, in my youth I had the best financial adviser a son could ask for: my dad Walter. I was raised in a very conservative family and Dad worked really hard to provide for all of us. So it should have been no surprise that his approach to money management was also conservative. When I got that first signing bonus in 1978, Dad took my cheque, announced, "This is what we're going to do," and bought an annuity with it. That's been very solid for me since day one. And so when my son turned pro and got a signing bonus, it was the same thing for him. "That's good," I said. "It's in the bank now, and you don't get to touch it."

Full article from Wayne :