Just One Man's Opinion - 03 August 2005
by JMac
DEAL OF THE CENTURY ?
In April, Unocal shareholders agreed to accept Chevron/Texaco's all cash offer of $63 per share. Oil was at the mid - 50's at the time. Then, the Chinese oil company Cnooc offered $67 in cash AND stock. Chevron, et.al. successfuly convinced the politicians that the sale to the Chinese was "not in our national interests" and Cnooc withdrew its bid Monday. With oil now at $62, Chevron gets Unocal's proven reserves at less than $20 a barrel, Unocal shareholders get less than fair value and the Chevron lobbyists get bonuses.
A FOOL'S TRAP - Don't be suckered in by The Big 3 automakers' July sales reports. Anyone can increase their sales by giving away their product. If these guys do not get MAJOR concessions from the UAW next year they are in big trouble. Stick with companies that have market share AND pricing power, e.g. Procter, Weight-Watchers, Motorola and Qualcomm.
THE NOT SO "FRIENDLY SKIES" - Delta will seek bankruptcy protection on, or before September 15. Dead Men Walking - United, U.S. Air, Independance, Northwest/AmericaWest.
FACTOIDS - In the seventy-five year history of commercial aviation in the US, the airline industry, as a whole, has NEVER had a profitable year. Meanwhile, J & J has not missed a dividend in 348 consecutive quarters, that is 87 years!!!
UTILITIES - An unusually hot summer and continued deregulation will result in a blow-out third quarter for the electric utilities. Best of breed - Duke Energy (yielding 4%), FP&L, Public Service of New Mexico and, yes, Pacific Gas and Electric.
PREDICTIONS - Microsoft will report at the end of this quarter they have in excess of 50 billion dollars in cash on hand. Beware - bondholders, housing and bank stockholders. Alan Greenspan is determined to burst, what he sees, as "the housing bubble". At least two more rate hikes are coming.
COMING TOMORROW - THE BALANCED PORTFOLIO
DEAL OF THE CENTURY ?
In April, Unocal shareholders agreed to accept Chevron/Texaco's all cash offer of $63 per share. Oil was at the mid - 50's at the time. Then, the Chinese oil company Cnooc offered $67 in cash AND stock. Chevron, et.al. successfuly convinced the politicians that the sale to the Chinese was "not in our national interests" and Cnooc withdrew its bid Monday. With oil now at $62, Chevron gets Unocal's proven reserves at less than $20 a barrel, Unocal shareholders get less than fair value and the Chevron lobbyists get bonuses.
A FOOL'S TRAP - Don't be suckered in by The Big 3 automakers' July sales reports. Anyone can increase their sales by giving away their product. If these guys do not get MAJOR concessions from the UAW next year they are in big trouble. Stick with companies that have market share AND pricing power, e.g. Procter, Weight-Watchers, Motorola and Qualcomm.
THE NOT SO "FRIENDLY SKIES" - Delta will seek bankruptcy protection on, or before September 15. Dead Men Walking - United, U.S. Air, Independance, Northwest/AmericaWest.
FACTOIDS - In the seventy-five year history of commercial aviation in the US, the airline industry, as a whole, has NEVER had a profitable year. Meanwhile, J & J has not missed a dividend in 348 consecutive quarters, that is 87 years!!!
UTILITIES - An unusually hot summer and continued deregulation will result in a blow-out third quarter for the electric utilities. Best of breed - Duke Energy (yielding 4%), FP&L, Public Service of New Mexico and, yes, Pacific Gas and Electric.
PREDICTIONS - Microsoft will report at the end of this quarter they have in excess of 50 billion dollars in cash on hand. Beware - bondholders, housing and bank stockholders. Alan Greenspan is determined to burst, what he sees, as "the housing bubble". At least two more rate hikes are coming.
COMING TOMORROW - THE BALANCED PORTFOLIO
posted by TandaPundit at 4.8.05
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