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


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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…
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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…
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Phil's Favorites

Facebook begins to shift from being a free and open platform into a responsible public utility

 

Facebook begins to shift from being a free and open platform into a responsible public utility

Facebook CEO Mark Zuckerberg prepares to testify on Capitol Hill. AP Photo/Andrew Harnik

Courtesy of Anjana Susarla, Michigan State University

When Facebook recently removed several accounts for trying to influence the 2018 midterm elections, it was the company’s latest move acknowledging the ...



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Zero Hedge

Death Of A Nation: Drug Overdose Deaths Jump To Record 72,000 Last Year

Courtesy of ZeroHedge. View original post here.

The Centers for Disease Control (CDC) estimates drug overdose deaths based on a current flow of mortality data from the National Vital Statistics System has just reached a record of 71,568 Americans in 2017. That is a 6.6 percent jump in overdose deaths over 2016 and represents a rapid deterioration of America’s inner core: The middle class.

More than 40,000 Americans...



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Digital Currencies

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

 

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

Shutterstock

Courtesy of Brian Lucey, Trinity College Dublin and Shaen Corbet, Dublin City University

The rollercoaster of cryptocurrency pricing is on the downward slope again. Bitcoin has fallen by a quarter in the past month, with other...



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ValueWalk

The Top 10 Wildest Campaigns Of 2018: Starboard's Stake In Symantec

By ActivistInsight. Originally published at ValueWalk.

This week’s column is a continuation of our 10 “wildest campaigns” of 2018. Find the first part here.

Q2 hedge fund letters, conference, scoops etc

Free-Photos / PixabayTop 10 Wildest Campaigns Of 2018

5. How often does an activist win a proxy contest without support from either of the two main proxy advisory firms? (...



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Kimble Charting Solutions

Small Caps attempting 20-year breakout, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

The Russell 2000 trend remains solidly higher, as it has created a series of higher lows and higher highs inside of rising channel (1) over the past 25-years.

Small caps have been an upside leader in 2018, as they are very near all-time highs.

We applied Fibonacci extension levels to the 2007 highs and 2009 lows at each (2).

Joe Friday Just The Facts Ma’am- Small caps are attempting a dual breakout at (3). 

This is a price point that small-cap bulls would LOVE to see strength and a breakout take place, as monthly momentum is lofty.

...

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Insider Scoop

Walmart Posts Standout Quarter, But Raymond James Downgrades On Flipkart Costs

Courtesy of Benzinga.

Related WMT 10 Biggest Price Target Changes For Friday Headlights On Deere: Mixed Results As Company Cites H...

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Biotech

Nanomedicine could revolutionise the way we treat TB. Here's how

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

Nanomedicine could revolutionise the way we treat TB. Here's how

Nanomedicine could scupper the need for TB patients to take multiple daily tablets with toxic side effects. Daniel Irungu/EPA

Courtesy of Sarah D'Souza, University of the Western Cape and Admire Dube, University of the Western Cape

Tuberculosis is one of the world’s ...



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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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

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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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...

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