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Eman
2014 Mar 13, 2:46pm
SDRL is a great value play at this price. Strong support right here. It's a better play than RIG. Not only it's the best deep sea drilling company, but its dividend is superb compared to its peers. Buy buy buy.
I don't know much about the other 2 companies.
SFace
2014 Mar 13, 2:59pm
Yahoo huh? You like living on the edge don't you?
Contrary to popular belief, Yahoo is pretty known and not risky at all. Yahoo's core business is pretty crappy, net income of approx 500-600M a year, couldn't move that thing for three years now..
But the equity interest in Yahoo Japan and Alibaba, that is another story.
Yahoo Japan trades for 35B, Alibaba from my contacts in the china desk is as valuable as Tencent. It will IPO in the 140B-180B ballpark. Yahoo owns 35% and nearly 24% respectively. Net of tax, Yahoo's equity interest is around 30B depending on how much Alibaba is worth and tax impact.
There's really not much downside to Yahoo because the core business is valued at peanuts, but they can improve the core. They have lots of web properties with 800M users but can't figure out how to monetize them (Still earned 800M in pre-tax income before equity interest). A mini Google with lots of competiting properties. Tencent/Alibaba is china's Google/Facebook. I love Tencent as well.
anotheraccount
2014 Mar 13, 3:03pm
SDRL is a great value play at this price
Why do they have almost 14B in debt for a company with a 15B market cap?
SFace
2014 Mar 13, 3:05pm
SDRL is a great value play at this price
Why do they have almost 14B in debt for a company with a 15B market cap?
It's a capital intensive business and when you have a capital extensive business with Macondo like liability potential, you pay yourself first before the bank. (Ultra-Deep rigs costs a fortune).
It's like a construction company, they'll release all the equity and try to keep a bare minimum. If things happen (oil leak, accident, death, fire, etc.) start another company. lol. It's basic common sense. These are not the type of companies to build an Apple like Warchest and lose it all if an accident happen. Seadrill partners (SDLP) North Atlantic Drilling (NADL) are designed to spread out the equity and keep it away from lawsuit happy government and individuals.
FortWayne
2014 Mar 16, 2:15am
If that's the kind of advice you guys give, you 2 should just stop giving it.
The only thing I see there is SODA, and it's only because they actually have potential to come up with a killer product or be bought by Pepsi/CocaCola. That's it.
New Renter
2014 Mar 16, 2:20am
It's like a construction company, they'll release all the equity and try to keep a bare minimum. If things happen (oil leak, accident, death, fire, etc.) start another company. lol.
At which point the investors are left holding the bag, correct?
I'd consider SDRL for the dividend, but their plan seems questionable as it seems to be banking on a continued improving economy and low interest rates (dividends can be scrapped quickly). OXGN was a great buy at $2 and is still a great buy at $4. Partnership chances with a bigger pharma co. have improved greatly, their phase 2 trial data was very good and they are the leaders of plant-based VDAs.
Y
2014 Mar 16, 7:07am
Didn't you see it? Marissa knows the sauce.
FortWayne says
Yahoo huh? You like living on the edge don't you?
My only two holdings are
INVN @ 18$ avg
And
PHOT @ 0.40 avg
Going to continue holding both thru april and then re-evaluate my strategy
AverageBear
2014 Apr 26, 12:43am
SFace, if you are looking at a energy services company, did you consider buying KMI on the dips? Growing dividend, 'toll-gate' revenues. IIRC, they bought some large tankers for either LNG, or oil transport.... This would be a buy-hold type of company, and don't know if this would be your type of investment.
Added the following today
Yahoo@ 37.23
I believe there is a place for Yahoo in mobile advertising dominated by Google and Facebook. Marissa is an ex Google so she knows Google's secret sauce and will emulate even though it has been frustrating. Lots of web properties but have not put it together. The core can be improved.
Alibaba will be a HUGE IPO and Yahoo will be the beneficary of that 24% of some huge number (Tencent is $140B). I want the IPO as late as possible. Yahoo's stake in Japan is another 12B or 8B net of tax. Alibaba may be another 25B net of tax, essentially Yahoo's core is around 5-10B and why I would overweigh Yahoo because the core can improve and Alibaba will be a bonifide monster with Tencent as a favorable comparable . Alibaba and Tencent are legit.
Seadrill @ 33.50.
$3.92 in annual dividends maintained over the next couple of years. Well managed for the downcycle drivin by cap-ex cut by customer not oil price. Always buy in the downcycle which is what we are seeing in drilling and benefitting. Buy when the cycle is down and sell when it is going good.
Sodastream @ 39.75
A patrick special. It has a lot of Green Mountain Coffee Roaster in them. The brand and distribution network has value and SODA can get a little more diversified with less sugar soda, juice and other inititives, Lots of partnership potential and good entry point.
#investing