Posts Tagged ‘dividend’

BP CEO Considering Cutting Q2 Dividend As Oil Spill And Liability Estimates Double, Goldman Not Exuberant

BP CEO Considering Cutting Q2 Dividend As Oil Spill And Liability Estimates Double, Goldman Not Exuberant

Courtesy of Tyler Durden, at Zero Hedge 

Those recently popular trades to hedge BP dividends using options to create synthetic BP stock may prove prescient. The WSJ is reporting that the firm is now "considering cutting or deferring its second quarter dividend." The dividend is due to be announced on July 27, and BP’s board may cut it altogether, defer it, or pay all or part in scrip, effectively an IOU to investors, Hayward was quoted as saying." The news comes as Reuters announces that the daily flow rate from the spill is actually double previous estimates: "News that the flow rate may be as high 40,000 barrels (1.68 million gallons/6.36 million liters) per day — twice as much as previously thought — came after the U.S. market closed on Thursday." This is very bad news as it effectively doubles any accrued fines that the firm will ultimately have to pay: the new liability estimate now may be as high as $80 billion! And true to form, an administration official is there to pour some more fuel in the fire: "White House adviser David Axelrod dismissed complaints from BP about the U.S. government’s pressure, saying in an interview Hayward should “spend less time on hyperbole, and a lot more time on trying to solve the problem,” according to the Journal." In other news, in a research note released yesterday, Goldman’s analyst della Vigna expressed a muted enthusiasm for the stock, nothing compared to JPM rabid support for BP stock at these levels.

From Goldman:

BP shares have fallen 12% this week, due to increased pressure on management from the US administration, however no material negative news came through in terms of the size or potential cost of the GoM spill. Additionally the riser cap is in place and appears to be capturing a significant amount of oil. BP shares have now fallen 42% since the accident, underperforming European integrated oils by 23%. This implies that the market is discounting c.US$33 bn of post-tax damages from the spill, equivalent to US$40-50 bn on a pre-tax basis, which is in the upper end of our estimated liability range. Given uncertainties remain, we still see superior risk/reward in Shell and Statoil, both


continue reading


Tags: , , , , , , ,




Rumour: BP To Cut Its Dividend Next Week, and Yet Another Goldman Sachs Stock Scandal

Rumour: BP To Cut Its Dividend Next Week, and Yet Another Goldman Sachs Stock Scandal

Courtesy of JESSE’S CAFÉ AMÉRICAIN

Soaked in oil, browns await cleaning at a rescue center set up by the International Bird Rescue Research Center in Buras, Louisiana, June 7, 2010. Oil has been leaking into the Gulf of Mexico for over a month since a massive explosion on the BP oil rig Deepwater Horizon, injuring wildlife and fouling the fragile marshlands. UPI/A.J. Sisco.... Photo via Newscom

This is making the rounds as a rumour, but it has credibility, and I have been expecting it as they need to set aside some serious reserves for litigation and damages caused.

The company is in deep trouble, and the CEO is making all the classic errors we learned not to do in the crisis management courses in business school.

The rumour is so widespread that I am sure it will make the wires somewhere and I will look for it.

I do not expect BP to declare bankruptcy as this story suggests, although it would be an interestingly foul gambit to try and avoid its liabilities.

British Petroleum had been at the heart of darkness many years ago, as in the example of the Iranian coup d’etat of 1953 and imprisonment of Iran’s democratically elected leader Mohammad Mosaddegh, followed by over twenty years of tyranny and torture. Some think this is what had inspired Eisenhower’s parting words about the Anglo-American military-industrial complex.

Although through aggressive use of public relations had improved its image, BP has long been noted by investigative reporters and environmentalists as a bad boy among the corporate multinationals, preferring to spend money on PR, politicians, and regulators rather than planning and safety. BP: Slick Operator and BP’s Other Spill by Greg Palast for example, and those radicals at the Seattle Times: BP’s Trail of Accidents and Scandals Lead to Alaska. When Sarah Palin, former governor of Alaska winks and says "I’m your gal," she just might not be winking at you, chump change.

I thought it was interesting that they bought the search term "oil spill" from Google to better direct the flow of information from the public.

And then of course there is the issue of insider selling that occurred prior to the more complete release of the extent of the Gulf oil leak disaster involving BP executives and former executives, and of course Goldman Sachs. Gulf Oil Spill to Drag Goldman Sachs into Trading Scandal?

This is not to say that all corporations are corrupt all the time, not at all. But neither are they naturally good, all the time. It underscores the need for regulation, and investigations into the type of corruption which was apparently widespread in the…
continue reading


Tags: , , , , ,




Qualcomm Tries to Woo Investors with Massive Buyback and Dividend Hike

Qualcomm Tries to Woo Investors with Massive Buyback and Dividend Hike

Courtesy of Ockham Research

San Diego-based technology giant Qualcomm (QCOM) has been in a steady downtrend since the beginning of 2010 falling nearly 30% from the high point in January.  Much of the decline was in response to a weaker than expected revenue outlook and expected margin pressure for the year ahead, even though the company reiterated their earnings guidance shares fell more than 14% on that day.  Today, the stock continued its now 7 day consecutive slide, with the technology sector leading the market higher, QCOM fell by another 3%.  This is not the sort of performance one would expect from a company that is deeply tied to one of the market’s hot sectors, with a market leading position in producing computer chips for mobile devices.

Desperate for some good news, management has taken action to combat the declines; they announced a 12% increase to quarterly dividends as well as authorization of a $3 billion share repurchase.  The new quarterly dividend of $.19 will be effective on payments after March 28th, and the $.76 annual payout implies a 2.1% yield.  Also in the press release, the company’s trumpeted that it has returned $12.6 billion to shareholders dating back to 2003, which is certainly commendable.  However, the share repurchase comes with no expiration, so they get the benefit of the good press with no implied time-table to spend the cash should better uses for capital arise.

These shareholder-friendly moves have sent shares higher in after hours trading, but will this be the silver bullet that will turn QCOM stock around?  Analysts and investors have been scared off by falling average unit selling prices on some of their products, but we think those concerns at this point have been nearly priced in.  While there still may be some further downside, we think the value has become attractive following the pressure the shares have been under.

As of the beginning of this week, we rated QCOM as Fairly Valued, but was very close to the threshold to upgrade it.  Any further decline in price or improvement in fundamentals may be enough to push it to Undervalued, and the dividend increase will clearly be a positive fundamental factor.  In addition, QCOM’s historical price-to-sales has ranged from 6.8x to 11.6x, but the current metric is only 5.8x.  This company has lowered…
continue reading


Tags: , , ,




 
 
 

Zero Hedge

OECD Slashes Global Growth Outlook, Warns Germany Already In Recession

Courtesy of ZeroHedge View original post here.

In one of the most downbeat forecasts on the global economy that we've seen so far this year, the Paris-based organization of wealthy nations known as the OECD - the Organization for Economic Cooperation and Development - warned that the global economy is heading toward a recession, and that governments aren't doing enough in terms of fiscal stimulus to try and boost the economy.

"Escalating trade policy tensions are taking an increasing toll on confidence and investment, adding to policy uncertainty, weighing on risk senti...



more from Tyler

The Technical Traders

Precious Metals Setting Up Another Momentum Base/Bottom

Courtesy of Technical Traders

Just as we predicted, precious metals are setting up another extended momentum base/bottom that appears to be aligning
with our prediction of an early October 2019 new upside price leg.

Recent news of the US Fed decreasing the Fed Funds Rate by 25bp as well as strength in the US stock market and US Dollar as eased fears and concerns across the global markets.  These concerns and fears are still very real as the overnight credit market has continue to illustrate.  Yet, the precious metals have retraced from recent highs and begun to form a momentum base which will likely become the
floor for the next move higher.

The one aspect that many traders ...



more from Tech. Traders

Phil's Favorites

What Are Your Thoughts: Is Anyone Really "Middle Class"?

 

What Are Your Thoughts: Is Anyone Really “Middle Class”?

Courtesy of 

 

On a new edition of What Are Your Thoughts?, Michael Batnick and Josh Brown discuss:

  • The Repo Rate mini-panic
  • Are we ready for the Daniel Jones Era?
  • Does it really take $350,000 a year to live in cities?
  • Standup comics up in arms over political correctness and “cancel culture”
  • People got excited about value stocks recently. Again.
  • More terrible sports takes from Josh
  • Do you need a car...


more from Ilene

Lee's Free Thinking

Federal Reserve Bank of New York Statement On Repurchase Operation - Roll Over Beethoven!

Courtesy of Lee Adler

This is a syndicated repost courtesy of NY | Press Releases | Markets & Policy Implementation. To view original, click here. Reposted with permission.

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase agreement (repo) operation from 8:15 AM ET to 8:30 AM ET tomorrow, Friday, September 20, 2019, in order to help maintain the federal funds rate within the target range of 1-3/4 to 2 percent.

–Federal Reserve Bank of New Yo...



more from Lee

Insider Scoop

Morgan Stanley On Bandwitdh Inc: This Isn't A 'Cheaper Twilio'

Courtesy of Benzinga

Enterprise CPaaS company Bandwidth Inc (NASDAQ: BAND) boasts a cost-effective, flexible and responsive solution platform and counts some of the most "demanding" corporate giants as customers. However, there is a misconception bet...



http://www.insidercow.com/ more from Insider

Kimble Charting Solutions

Stocks, Oil, and Bond Yields At Critical Bullish Breakout Tests!

Courtesy of Chris Kimble

It’s not often that three asset classes reach similar important trading points all at once.

But that’s exactly what’s happening right now with stocks, crude oil, and treasury bond yields.

And this is occurring on Federal Reserve day no less! Something has got to give.

In the chart above y...



more from Kimble C.S.

Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

more from Chart School

Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



more from Bitcoin

Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>