Thank you, Thank you, Conspiracy, Gumshoe
– Thanks for the mention
– Thanks for reading
– Wondered when this stuff would come up
– This is great
Visit the ValuePlays Bookstore for Great Investing Books
Thank you, Thank you, Conspiracy, Gumshoe
– Thanks for the mention
– Thanks for reading
– Wondered when this stuff would come up
– This is great
Visit the ValuePlays Bookstore for Great Investing Books
So the latest Dow Chemical (DOW) rumor has yet another JV with Saudi Aramco. Could it be true? You betcha….
Let’s go back to last years announcement of the JV to build factories at Ras Tanura on Saudi Arabia’s Persian Gulf coast. The plants are going to have the capacity to produce as much as 8 million tons of chemicals and plastics a year, using raw materials from nearby oil and natural gas plants at a cost of 1/10th the current market rate for oil gas.
Now it is being reported that Saudi Aramco and Dow plan to build a $26 billion petrochemicals complex in Saudi Arabia to take advantage of the world’s biggest oil reserves and meet rising demand for plastics. Aramco and Dow aim to raise about $18 billion from loans and bonds starting next year to finance the project, said a banker, who declined to be identified because the plan is private. Royal Bank of Scotland (RBS) and Riyad Bank will help raise 70 percent of the project’s cost, said Abdulaziz al-Judaimi, Aramco’s vice president for new business, declining to provide an amount.
So, should we believe it?
If you remember my recent interview with CEO Andrew Liveris I asked if the most prudent use of the upcoming proceeds from the Kuwait sale wasn’t “more petrochemical JV’s, share repurchases and dividend increases”. His answer? A succinct, “Yes”.
Now, the final amounts of the project may differ from $26 billion but the deal is in the works. Liveris has made no bones about his desire to expand his petrochemical business. Here is the important point. Dow is the company of choice for nations rich in raw materials to do business with. Saudi Arabia, Kuwait, Singapore, China, Brazil and Russia are all working with Dow on various projects and what is even better for Dow shareholders is that the scale of the projects is growing exponentially larger and the cash outlays on the part of Dow to finance the deals is negligible.
Once active, the JV’s are self financing and Dow simply receives and equity payment for its interest. Nice..
Looks for details in the next 30 days. Whatever the final number, it will be big
Disclosure (“none” means no position):Long Dow
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Upgrades
Flowserve (FLS)- BMO Capital Markets Market Perform » Outperform
Bankrate (RATE)- Merriman Curhan Ford Neutral » Buy
Commercial Metals (CMC)- Davenport Neutral » Buy
Marten Transport (MRTN)- BB&T Capital Mkts Hold » Buy
Beneficial Mutual Bancorp (BNCL)- Boenning & Scattergood Market Perform » Market Outperform
Celadon Group (CLDN)- BB&T Capital Mkts Hold » Buy
First Commonwealth (FCF)- Janney Mntgmy Scott Sell » Neutral
Energy Conversion (ENER)- Broadpoint Capital Neutral » Buy
Penn Natl Gaming (PENN)- Sterne Agee Hold » Buy
EMC Corp (EMC)- RBC Capital Mkts Sector Perform » Outperform
Fastenal (FAST)- BB&T Capital Mkts Hold » Buy
Southwest Bancorp (OKSB)- Stifel Nicolaus Hold » Buy
Dyncorp Intl (DCP)- Stifel Nicolaus Hold » Buy
CF Industries (CF)- Credit Suisse Neutral » Outperform
Temple-Inland (TIN)- Credit Suisse Neutral » Outperform
Smurfit-Stone (SSCC)- Credit Suisse Neutral » Outperform
Saia (SAIA)- BB&T Capital Mkts Hold » Buy
Con-way (CNW)- BB&T Capital Mkts Hold » Buy
Juniper Networks (JNPR)- Piper Jaffray Neutral » Buy
Ameristar Casinos (ASCA)- JP Morgan Underweight » Neutral
Kindred Healthcare (KND)- Friedman Billings Mkt Perform » Outperform
Broadcom (BRCM)- Piper Jaffray Neutral » Buy
Suncor Energy (SU)- Friedman Billings Mkt Perform » Outperform
J. Crew (JCG)- Citigroup Sell » Hold
ARM Holdings (ARMH)- UBS Neutral » Buy
BT Group PLC (BT)- UBS Sell » Neutral
Suncor Energy (SU)- JP Morgan Neutral » Overweight
Network Appliance (NTAP)- Robert W. Baird Neutral » Outperform
Convergys (CVG)- Oppenheimer Perform » Outperform
Popular Inc (BPOP)- Keefe Bruyette Underperform » Mkt Perform
First Bancorp (FBP)- Keefe Bruyette Underperform » Mkt Perform
Downgrades
Ultratech (UTEK)- DA Davidson Buy » Neutral
MiddleBrook Pharma (MBRK)- Pacific Growth Equities Buy » Neutral
MiddleBrook Pharma (MBRK)- Pacific Crest Buy » Neutral
Time Warner (TWX)- Lehman Brothers Overweight » Equal-Weight
Vulcan Materials (VMC)- Longbow Buy » Neutral
United Thera (UTHR)- Stanford Research Buy » Hold $101
Marshall & Ilsley (MI)- Morgan Keegan Outperform » Mkt Perform
Noven Pharma (NOVN)- Jefferies & Co Hold » Underperform $11 » $9
Omnicom (OMC)- Bernstein Outperform » Mkt Perform
Airgas (ARG)- BB&T Capital Mkts Buy » Hold
CBS Corp (CBS)- Lehman Brothers Equal-Weight » Underweight
News Corp (NWS)- Lehman Brothers Overweight » Equal-Weight
Walt Disney (DIS)- Lehman Brothers Equal-Weight » Underweight
Orthofix (OFIX)- Wachovia Outperform » Mkt Perform
Calpine (CPN)- Lehman Brothers Overweight » Equal-Weight
Acme Packet (APKT)- Piper Jaffray Buy » Neutral
Acme Packet (APKT)- JP Morgan Overweight » Underweight
Agnico-Eagle Mines (AEM)- UBS Buy » Neutral
Qimonda (QI)- UBS Buy » Neutral
Merck (MRK)- UBS Buy » Neutral
Marshall & Ilsley (MI)- JP Morgan Neutral » Underweight
AstraZeneca (AZN)- Deutsche Securities Buy » Hold
Zions Bancorp (ZION)- Robert W. Baird Outperform » Neutral
Pacific Rim Mining (PMU)- BMO Capital Markets Market Perform » Underperform
On2 Technologies (ONT)- Merriman Curhan Ford Buy » Neutral
Visit the ValuePlays Bookstore for Great Investing Books
Upgrades
Flowserve (FLS)- BMO Capital Markets Market Perform » Outperform
Bankrate (RATE)- Merriman Curhan Ford Neutral » Buy
Commercial Metals (CMC)- Davenport Neutral » Buy
Marten Transport (MRTN)- BB&T Capital Mkts Hold » Buy
Beneficial Mutual Bancorp (BNCL)- Boenning & Scattergood Market Perform » Market Outperform
Celadon Group (CLDN)- BB&T Capital Mkts Hold » Buy
First Commonwealth (FCF)- Janney Mntgmy Scott Sell » Neutral
Energy Conversion (ENER)- Broadpoint Capital Neutral » Buy
Penn Natl Gaming (PENN)- Sterne Agee Hold » Buy
EMC Corp (EMC)- RBC Capital Mkts Sector Perform » Outperform
Fastenal (FAST)- BB&T Capital Mkts Hold » Buy
Southwest Bancorp (OKSB)- Stifel Nicolaus Hold » Buy
Dyncorp Intl (DCP)- Stifel Nicolaus Hold » Buy
CF Industries (CF)- Credit Suisse Neutral » Outperform
Temple-Inland (TIN)- Credit Suisse Neutral » Outperform
Smurfit-Stone (SSCC)- Credit Suisse Neutral » Outperform
Saia (SAIA)- BB&T Capital Mkts Hold » Buy
Con-way (CNW)- BB&T Capital Mkts Hold » Buy
Juniper Networks (JNPR)- Piper Jaffray Neutral » Buy
Ameristar Casinos (ASCA)- JP Morgan Underweight » Neutral
Kindred Healthcare (KND)- Friedman Billings Mkt Perform » Outperform
Broadcom (BRCM)- Piper Jaffray Neutral » Buy
Suncor Energy (SU)- Friedman Billings Mkt Perform » Outperform
J. Crew (JCG)- Citigroup Sell » Hold
ARM Holdings (ARMH)- UBS Neutral » Buy
BT Group PLC (BT)- UBS Sell » Neutral
Suncor Energy (SU)- JP Morgan Neutral » Overweight
Network Appliance (NTAP)- Robert W. Baird Neutral » Outperform
Convergys (CVG)- Oppenheimer Perform » Outperform
Popular Inc (BPOP)- Keefe Bruyette Underperform » Mkt Perform
First Bancorp (FBP)- Keefe Bruyette Underperform » Mkt Perform
Downgrades
Ultratech (UTEK)- DA Davidson Buy » Neutral
MiddleBrook Pharma (MBRK)- Pacific Growth Equities Buy » Neutral
MiddleBrook Pharma (MBRK)- Pacific Crest Buy » Neutral
Time Warner (TWX)- Lehman Brothers Overweight » Equal-Weight
Vulcan Materials (VMC)- Longbow Buy » Neutral
United Thera (UTHR)- Stanford Research Buy » Hold $101
Marshall & Ilsley (MI)- Morgan Keegan Outperform » Mkt Perform
Noven Pharma (NOVN)- Jefferies & Co Hold » Underperform $11 » $9
Omnicom (OMC)- Bernstein Outperform » Mkt Perform
Airgas (ARG)- BB&T Capital Mkts Buy » Hold
CBS Corp (CBS)- Lehman Brothers Equal-Weight » Underweight
News Corp (NWS)- Lehman Brothers Overweight » Equal-Weight
Walt Disney (DIS)- Lehman Brothers Equal-Weight » Underweight
Orthofix (OFIX)- Wachovia Outperform » Mkt Perform
Calpine (CPN)- Lehman Brothers Overweight » Equal-Weight
Acme Packet (APKT)- Piper Jaffray Buy » Neutral
Acme Packet (APKT)- JP Morgan Overweight » Underweight
Agnico-Eagle Mines (AEM)- UBS Buy » Neutral
Qimonda (QI)- UBS Buy » Neutral
Merck (MRK)- UBS Buy » Neutral
Marshall & Ilsley (MI)- JP Morgan Neutral » Underweight
AstraZeneca (AZN)- Deutsche Securities Buy » Hold
Zions Bancorp (ZION)- Robert W. Baird Outperform » Neutral
Pacific Rim Mining (PMU)- BMO Capital Markets Market Perform » Underperform
On2 Technologies (ONT)- Merriman Curhan Ford Buy » Neutral
Visit the ValuePlays Bookstore for Great Investing Books
Bill Miller talks about Citibroup (C), Feddie Mac (FRE), Bear Sterns (BSC), Fannie Mae(FNM), Countrywide (CFC).
He made an interesting comment about this current market being similar to the early 80s to mid 90s,where he made a 50 fold return on FNM which at the time was carrying bad loans.
Disclosure (“none” means no position):Long C, none
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“In a unanimous opinion [4-0], the Rhode Island Supreme Court overturned the lead paint judgment against defendants Sherwin-Williams (SHW), NL Industries (NL) and Millennium Holdings. In addition, it upheld the judgment in favor of Atlantic Richfield, vacated the contempt citations against RI Attorney General Patrick Lynch, and recognized the validity of contingency agreements between the AG and outside counsel.”
Read decision:
script src=”http://www.valueinvestingnews.com/sites/all/scripts/externalvote.js” type=”text/javascript”>
Disclosure (“none” means no position):Long SHW
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Bruce talks about Leucadia (LUK), Americredit (ACF), AIG (AIG) and the banks. Also, he goes into Sears Holdings (SHLD)
Berkowitz has the correct look at Sears, not just a retailer but a collection of successful entities that when monetized (it is happening), will provide returns.
Disclosure (“none” means no position):Long SHLD, None
Visit the ValuePlays Bookstore for Great Investing Books
Berkowitz has sold 1/2 of its energy holdings and is moving into health care…
Disclosure (“none” means no position):None
Visit the ValuePlays Bookstore for Great Investing Books
Vinod is putting his millions behinds his words…
With ethanol plays like Versasun (VSE), Pacific Ethanol (PEIX) and Archer Daniel’s Midland (ADM) off highs, those investors might want to watch.
Disclosure (“none” means no position):Long ADM
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Some thoughts from the lake…..Dennis Gartman talks about commodities..
Gartman talks about oil (USO) and the demand destruction of it undergoing. He also talks about corn, wheat and the lost acreage of them due to the recent flooding.
One would think that food prices are going higher due to worldwide demand and weather and oil may crash short term. We sold our oil position a little while ago.
Oil is due for a rapid correction followed by a slow drift up. I think the easy money here has been made though.
Disclosure (“none” means no position):None
Visit the ValuePlays Bookstore for Great Investing Books
A long list for the week away at Value Investing News
Western Sizzlin’ announced a share buyback authorization today, which is terrific news for shareholders. In this article I explain why that make sense for WEST and all undervalued companies.
This is a transcript of Warren Buffett’s live interview with Becky Quick on CNBC’s Power Lunch, Wednesday, June 25, 2008 at 12p ET. Buffett tells Becky U.S. inflation is “exploding” and warns that the Federal Reserve must signal controlling prices is not a secondary concern.
Want to get an MBA for $9? This is the book to get. Although not an easy read like other value investing books, Professor Greenwald and company provide an informative read that should have a place in every value investor’s library.
I look at Losing My Virginity by Richard Branson, a book recommended by Mohnish Pabrai. Branson actually acts very similar to a value investor and employs a margin of safety in the businesses he starts, this is a great book.
Report on a breakout session called “Let’s Talk Bargains” with Bruce Berkowitz of Fairholme Capital Management and Susan Byrne of Westwood Holdings Group Ltd. at the Morningstar Investment Conference.
Notes from a breakout session called “Investing 501″ with Bill Bernstein at the Morningstar Investment Conference.
The first of a multipart series reporting on the Morningstar Investment Conference. This entry covered several comments made by Bob Torray of Torray Fund.
Mohnish Pabrai discusses his upcoming lunch with Warren Buffett, rates, fuel costs, India, and more.
Marty Whitman shares his value investing insights in this latest letter. This master of distressed investing is taking advantage of the situations in the financial and bond insurer sectors.
Ought everyone disclose?
Following news that CEO Silverman resigned the stock dropped by almost 5%. Does this event change QSIIs numbers? No. This remains a strong business with a bright future operating in the right sector. Healthcare will continue to grow and QSII is in an ideal position to reap all potential gains.
Weekly roundup of stocks moving in and out of the Magic Formula screen.
The Permanent Portfolio likely deserves a place in your portfolio due to its diversification benefits and as a hedge against inflation.
Can Gannett turn around it’s decreasing revenue, compressing margins, falling return on capital, and dropping stock price? An analysis of Gannett, the largest newspaper publisher in the U.S.
here is the agreement
Seems like there was more to than meets the eye here
Will not happen
The billionaire investor says inflation is ‘exploding,’ but the Fed believes commodity price shocks should subside
A summary of chapter 11 of Mohnish Pabrai’s book, Mosaic: Perspectives on Investing. Dhando is all about buying wide moat businesses that generate tremendous cash.
Buffett talks about inflation, his charity lunch, and how he is a “spectator” only in the InBev Anheuser Busch takeover talks. The article includes a video of the interview.
Visit the ValuePlays Bookstore for Great Investing Books
A long list for the week away at Value Investing News
Western Sizzlin’ announced a share buyback authorization today, which is terrific news for shareholders. In this article I explain why that make sense for WEST and all undervalued companies.
This is a transcript of Warren Buffett’s live interview with Becky Quick on CNBC’s Power Lunch, Wednesday, June 25, 2008 at 12p ET. Buffett tells Becky U.S. inflation is “exploding” and warns that the Federal Reserve must signal controlling prices is not a secondary concern.
Want to get an MBA for $9? This is the book to get. Although not an easy read like other value investing books, Professor Greenwald and company provide an informative read that should have a place in every value investor’s library.
I look at Losing My Virginity by Richard Branson, a book recommended by Mohnish Pabrai. Branson actually acts very similar to a value investor and employs a margin of safety in the businesses he starts, this is a great book.
Report on a breakout session called “Let’s Talk Bargains” with Bruce Berkowitz of Fairholme Capital Management and Susan Byrne of Westwood Holdings Group Ltd. at the Morningstar Investment Conference.
Notes from a breakout session called “Investing 501″ with Bill Bernstein at the Morningstar Investment Conference.
The first of a multipart series reporting on the Morningstar Investment Conference. This entry covered several comments made by Bob Torray of Torray Fund.
Mohnish Pabrai discusses his upcoming lunch with Warren Buffett, rates, fuel costs, India, and more.
Marty Whitman shares his value investing insights in this latest letter. This master of distressed investing is taking advantage of the situations in the financial and bond insurer sectors.
Ought everyone disclose?
Following news that CEO Silverman resigned the stock dropped by almost 5%. Does this event change QSIIs numbers? No. This remains a strong business with a bright future operating in the right sector. Healthcare will continue to grow and QSII is in an ideal position to reap all potential gains.
Weekly roundup of stocks moving in and out of the Magic Formula screen.
The Permanent Portfolio likely deserves a place in your portfolio due to its diversification benefits and as a hedge against inflation.
Can Gannett turn around it’s decreasing revenue, compressing margins, falling return on capital, and dropping stock price? An analysis of Gannett, the largest newspaper publisher in the U.S.
here is the agreement
Seems like there was more to than meets the eye here
Will not happen
The billionaire investor says inflation is ‘exploding,’ but the Fed believes commodity price shocks should subside
A summary of chapter 11 of Mohnish Pabrai’s book, Mosaic: Perspectives on Investing. Dhando is all about buying wide moat businesses that generate tremendous cash.
Buffett talks about inflation, his charity lunch, and how he is a “spectator” only in the InBev Anheuser Busch takeover talks. The article includes a video of the interview.
Visit the ValuePlays Bookstore for Great Investing Books
RI SC RULING EXPECTED 6/1 or 6/2 – Informed sources indicate
Informed sources reported to me today that a ruling is expected from the Rhode Island Supreme Court on the the lead paint public nuisance appeal this coming Tuesday or Wednesday.
Those sources are anticipating a decision favorable to the three defendants Sherwin-Williams (SHW), NL Indusries (NL) and Millennium Holdings. How favorable is the issue. There could be a third trial rather than the whole enchilada being tossed.
We lead paint watchers are also very interested in the opinion of the RI SC on contingency, particularly in relation to the issue of separation of powers.
Disclosure (“none” means no position):Long SHW, none
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Since he has billions to invest, it bears listening to him..
Doll discusses the S&P, Oil (USO), the Fed, European Bankers, Speculation, Merrill Lynch (MER)
Disclosure (“none” means no position):None
Visit the ValuePlays Bookstore for Great Investing Books