Sunday, August 31, 2014

InterOil Is Looking Much Better



This article was originally published by Seeking Alpha on August 25, 2014.

Summary: Papua New Guinea focused InterOil has beefed up its balance sheet. The company is moving ahead with its drilling program to develop its massive acreage and has bigger ambitions as it eyes Asian markets.
 
The future of InterOil (NYSE:IOC), the Papua New Guinea focused independent oil and gas company, as a major exporter of liquefied natural gas, or LNG, from the island nation is looking better.

The company's major asset includes its interest in the island nation's Elk and Antelope gas field, one of the largest gas fields in Asia estimated to hold as much as 7 trillion cubic feet of gas, and exploration licenses covering more than 16,000 square kilometers, mainly in the Eastern Papuan Basin. As compared to the Western Basin, the Eastern Basin is relatively under-explored, but it is home to Elk and Antelope fields.

The company has recently released its second quarter results in which it swung to a profit of $52.3 million from a loss of $13.2 million in the same quarter last year, largely due to the $49.5 million gain on sale of assets to Puma Energy. In terms of continuing operations, the company's loss came in at $15.7 million, nearly flat from the same quarter last year.

Monetization

Earlier in June, InterOil sold its refinery and petroleum products distribution business to Singapore based Puma Energy to $525.6 million. The deal made Puma Energy the owner of the only refinery on PNG. For InterOil, the deal allowed the company to monetize... read full article at Seeking Alpha

Baytex Energy Isn't Just a Canadian Oil Producer Anymore -- So Is It a Buy?

This article was originally published by TheStreet on August 23, 2014
By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Baytex Energy (BTE_) used to be a producer of oil and gas, particularly heavy oil, from Peace River and Lloydminster in Alberta and Saskatchewan provinces of Canada -- but not anymore.
In an email to TheStreet, Baytex Energy's senior vice president for capital markets and public affairs Brian Ector has said that starting this year, the company will start getting a third of its total production from the U.S.

Thursday, August 28, 2014

Why Valero Energy Is a Stock Worth Remembering

This article was originally published by TheStreet on August 23, 2014
NEW YORK (TheStreet) -- Changing market conditions that could affect profitability have made many investors wary of refining stocks. This is particularly true for Valero Energy (VLO_) , the biggest independent player in the industry.
The narrowing spread between the price of Brent and West Texas Intermediary crude has also helped push Valero shares down, by 5.9% in the last two months.

China's JD.com Is the New Amazon in the E-Commerce Jungle

This article was originally published by TheStreet on August 19, 2014
NEW YORK (TheStreet) -- JD.com (JD_) , one of the biggest players in China's e-commerce market, posted its second-quarter results last week --its net loss increased by more than 20 times from the same period last year. Yet, its shares climbed by 2% when the markets opened on Monday.
Why? Because JD.com's business model makes it very familiar to anyone who knows Amazon (AMZN_) . JD.com sells a vast variety of products to consumers, often at lower prices than conventional brick and mortar stores. Hence JD.com's shares trade like those of Amazon, purely on growth. As long as JD.com manages to grow its revenues at a robust pace, its shares will likely continue going higher.
JD.com's shares have climbed 44% since its IPO in late-May, currently hovering around $30. For the third quarter, the company has forecast growth of between 55% and 61% from last year.

Monday, August 25, 2014

GoPro: Should You Ride This Roller Coaster Stock?

This article was originally published by Seeking Alpha on August 20, 2014. 


By Sarfaraz A. Khan. Research Asst. M. Arslan

Summary: GoPro’s latest quarterly results came in better than market’s expectation.GoPro dominates the action camera market and has a real opportunity for growth as a video content provider. However, there are serious concerns regarding this company and its stock.

GoPro (NASDAQ:GPRO), which makes its cameras for adrenaline junkies, has taken its shareholders on a roller coaster ride in less than two months of trading.

In the first few days of trading, the company's shares climbed by 55% in the first couple of days of trading until the beginning of July, dropped by 10% over the next two weeks, soared again by 23% until the end of July, and are down by 8.6% since then.

The company has recently released its quarterly results that were better than market's estimates, but its shares have fallen by 7.2% since the day of the earnings release. And it still doesn't look like a good investment.

Second Quarter

In its quarterly results, GoPro reported 38% year-over-year increase in revenues to $244.6 million, better than market's expectations of $238.1 million, on the back of 30.8% increase in shipments to 854,000 units. The company said that it benefited from an uptake in demand of its products as well as improvement in its relationship with the large distributors.

The net loss ballooned from $5.1 million a year ago to $19.8 million in the second quarter of this year. In adjusted terms, excluding the impact of one-off-times, the company swung to a profit of $11.8 million from …. Read full article at Seeking Alpha
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Buy Schlumberger on the Dip; Don't Worry About Iraq, Russia Exposure

This article was originally published by TheStreet on August 18, 2014
NEW YORK (TheStreet) -- Shares of the world's biggest oilfield services provider Schlumberger (SLB_) fell by 2.4% from last Tuesday to Friday due to mounting fears that the company could be the latest victim of the crises in Ukraine and Iraq. This, however, could be a buying opportunity for investors as the market have overreacted. Shares have recovered a bit since then -- up 1.6% Monday to $108.26 as of 1:45 p.m. -- but this is still a stock to buy on the dips.
This is because Schlumberger does not generate a significant portion of its total revenues from any single country outside of North America. Therefore, it is unlikely that the problems in Iraq or Russia will seriously damage the company's bottom line. The charges related to the Russian sanctions represent less than 2% of Schlumberger's earnings estimate for this quarter. Iraq's impact on the company's profits is even smaller.

Friday, August 22, 2014

Viper Energy Can Make You Profits But Can Also Bite

This article was originally published by TheStreet on August 18, 2014.
NEW YORK (TheStreet) -- You've heard of ranchers or land owners who receive royalty income by leasing their properties to oil and gas companies? So does Viper Energy (VNOM_) .
Viper Energy owns mineral interest in shale oil and gas properties, mainly in the prolific Permian Basin in West Texas. The company, which is structured as a master limited partnership, or MLP, generates its revenue by leasing these properties to energy producers, who bear all the operation and development costs and make royalty payments to Viper Energy on shale oil and gas production.

Antero's Growth Story -- What You Should Know Before Buying In

This article was originally published by TheStreet on August 13, 2014. 
NEW YORK (TheStreet) -- Very few energy companies have managed to consistently grow their production at over 50% over the last couple of years. Fewer still have given production growth forecast that exceeds 50%. A little-known shale gas producer which debuted on the stock market less than a year ago, Antero Resources (AR_), has managed to do both.
But is it a buy?
The shale gas boom in the U.S. is responsible for the creation of several energy companies. The biggest among them has been Chesapeake Energy (CHK_), the nation’s second-largestnatural gas producer, which holds nearly 13 million acres of land spread across eight states. However, the markets have rewarded companies that focus on producing from fewer but higher-quality assets, as Antero does.

Tuesday, August 19, 2014

Israel: Assessing The Cost Of War

This article was originally by Seeking Alpha on August 11, 2014.



Summary: Israel’s markets have shown resilience but optimism could evaporate if the war continues to drag. The conflict is now about as old as the 2006 Lebanon war. The country’s GDP growth could take a hit, but what about the nation’s biggest listed company Teva Pharmaceuticals? Can this war boost growth of Elbit Systems, Israel’s leading listed defense company?

The bloody conflict between Israel and Hamas rages on, despite cease-fires and truce talks. So far, more than 1,886 Palestinians and 67 Israelis have lost their lives. In addition to the tragic loss of life, it is becoming increasingly clear that the ongoing conflict could be one of the most expensive ones for Israel.

Market Resilience

Initially, Israel's stock markets reacted positively to operation Protective Edge. In the first ten days of the operation, Israel's two leading indices, the TA-100 and TA-25 climbed by 1.4% and 1.6% respectively. This could be due to a number of factors.

Firstly, the current situation is nothing new for the markets that have witnessed several military operations over the last ten years, from Operation Rainbow in 2004 to Operation Pillar of Defense in 2012.

Secondly, both indices, particularly TA-25, feature some of the biggest Israeli companies, such as the world's biggest generic drug maker Teva Pharmaceutical (NYSE:TEVA). These are global companies that do not depend heavily on Israel's market. For instance, in the first six months of this fiscal year, Teva Pharmaceutical generated more than 81% of its revenues from the U.S. and Europe while … read full article at Seeking Alpha
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