Even though Walter Energy (NYSE:WLT) shares soared Friday, there is still mixed reaction to their bid for Western Coal (TSE:WTN), and has also generated the idea they themselves may be a takeover target.
FBR said, "Shareholders woke up yesterday (Thursday) and had a mixed reaction to WLT's merger opportunity with WTN, for several reasons: (1) expectations, which some still have, of a WLT sale, not a defensive move (we do not); (2) limited understanding of WTN, or having preconceived notions, based on the past; (3) the large premium paid; and (4) the unknown financing structure...WLT is now "half-pregnant," since it now owns, or is responsible for, 20% of WTN shares and has two weeks to come to terms with Western Coal's board...We are increasing our WLT 2010/2011 EPS estimates to $7.73/$8.39 from $7.64/$7.96, primarily to reflect the income contribution (based on consensus) from the initial 9.2% stake in WTN, which WLT is acquiring from Audley Capital."
Walter Energy closed Friday at $105.91, soaring $9.05, or 9.34 percent. FBR has a price target of $98 on Walter, and maintains their "Outperform" rating on them.
Showing posts with label Shares. Show all posts
Showing posts with label Shares. Show all posts
Monday, November 22, 2010
Tuesday, July 20, 2010
Eldorado (NYSE:EGO), Agnico-Eagle (NYSE:AEM), Gammon (NYSE:GRS) Up on Gold Rebound
Eldorado Gold (NYSE:EGO), Gammon (NYSE:GRS) and Agnico-Eagle (NYSE:AEM) were all up over 2 percent today, as gold rose on disappointing earnings from some companies, along with the euro dropping early in the trading session.
The majority of gold miners were up on the day.
Eldorado topped the three as of 1:14 PM EDT, standing at $15.76, gaining $0.38, or 2.47 percent.
Agnico was at $56.57 as of 1:13PM EDT, just behind Eldorado as measured by percentages. They gained $1.31 a share, or 2.37 percent.
Even as I am writing Gammon Gold made a nice move, and are at $5.49, gaining $0.19, or 3.58 percent, as of 1:18 PM EDT.
Gold is expected to be volatile during the short term, but should rebound nicely and continue its upward move.
The majority of gold miners were up on the day.
Eldorado topped the three as of 1:14 PM EDT, standing at $15.76, gaining $0.38, or 2.47 percent.
Agnico was at $56.57 as of 1:13PM EDT, just behind Eldorado as measured by percentages. They gained $1.31 a share, or 2.37 percent.
Even as I am writing Gammon Gold made a nice move, and are at $5.49, gaining $0.19, or 3.58 percent, as of 1:18 PM EDT.
Gold is expected to be volatile during the short term, but should rebound nicely and continue its upward move.
Friday, July 16, 2010
BP (NYSE:BP) Shares Decline As Cap Is Holding
After all the anticipation and excitement over BP's (NYSE:BP) success in stopping the leaking oil, reality has hit to the massive effects of the worst oil spill in U.S. history. BP saw a decline in their shares of 4 percent to $37.38.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Thursday, July 15, 2010
BP (NYSE:BP) Stocks Price Dropping Again
After a five day winning streak, BP (NYSE:BP) stocks price is dropping again. The decline is said to be because of the delayed testing that would tell if the sealing cap that has been installed is successful.
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
Friday, July 9, 2010
Exxon Mobil (NYSE:XOM) Now Largest Gas Producer In U.S.
Exxon Mobil (NYSE:XOM) is now the largest natural gas producer in the United States. This happened on June 25th when the deal closed for the purchase of XTO Energy. Exxon plans to keep XTO's hedges for the 2010 - 2011 year in place., but will not hedge any production in the future.
They have also assumed $11 billion of debt and a share increase on outstanding shares of approximately 9 percent. Before the acquisition, Exxon had $2 billion worth of shares in the company. Their plan is to repurchase $3 billion in shares in the third quarter.
Exxon's also intends to restructure the debt once its economical. They are saying this does not change their focus on returns, but they admit it could be a few years away before returns on their investments may be seen. Due to the long term nature of the acquisition.
Short term they plan on drilling only the most attractive wells while holding on to their current uneconomical resources at the lowest possible cost. With little threat of their lease expiring and their financial strength, they can take there time and drill opportunistically unlike smaller exploration companies.
They have also assumed $11 billion of debt and a share increase on outstanding shares of approximately 9 percent. Before the acquisition, Exxon had $2 billion worth of shares in the company. Their plan is to repurchase $3 billion in shares in the third quarter.
Exxon's also intends to restructure the debt once its economical. They are saying this does not change their focus on returns, but they admit it could be a few years away before returns on their investments may be seen. Due to the long term nature of the acquisition.
Short term they plan on drilling only the most attractive wells while holding on to their current uneconomical resources at the lowest possible cost. With little threat of their lease expiring and their financial strength, they can take there time and drill opportunistically unlike smaller exploration companies.
Thursday, June 24, 2010
New York Pension Fund Suing BP (NYSE:BP) For Losses
The New York Pension Fund is saying they are suing BP (NYSE:BP) for investment losses. They are hoping to recover some of their losses from the drop that they have experienced with their stocks. Due to BP's negligence that caused the worst oil spill in U.S. history.
When the Deepwater Rig exploded April 20th, the fund held over 19 million shares according to state Comptroller Thomas DiNopoli. DiNopoli has hired the law firm Cohen Milstein Sellers and Toll, he is the sole trustee of the $132.6 billion in the fund.
"BP mislead investors about its safety procedures and its ability to respond to events like the ongoing oil spill and we're going to hold it accountable," said DiNopoli.
One of the largest state pension funds is in Florida and holds $104 billion according to spokesman Dennis Mackee. "We're monitoring the lawsuit and all developments but we have not come to any decisions," said Mackee. The Florida pension fund covers close to 1 million active workers and retirees. They've seen a loss of almost $65 million on their BP investments.
When the Deepwater Rig exploded April 20th, the fund held over 19 million shares according to state Comptroller Thomas DiNopoli. DiNopoli has hired the law firm Cohen Milstein Sellers and Toll, he is the sole trustee of the $132.6 billion in the fund.
"BP mislead investors about its safety procedures and its ability to respond to events like the ongoing oil spill and we're going to hold it accountable," said DiNopoli.
One of the largest state pension funds is in Florida and holds $104 billion according to spokesman Dennis Mackee. "We're monitoring the lawsuit and all developments but we have not come to any decisions," said Mackee. The Florida pension fund covers close to 1 million active workers and retirees. They've seen a loss of almost $65 million on their BP investments.
Thursday, June 17, 2010
Halliburton's (NYSE:HAL) Share Estimates Raised
The analysts of Susquehanna have lifted their estimates on earnings and maintained their Buy rating as well as a price target of $38 on Halliburton (NYSE:HAL) shares. This lift was after better than expected activity.
The analysts wrote, "U.S. Land drilling is trending up 12% 2Q to date relative to 1Q. This, coupled with favorable service intensity (horizontal drilling is trending up 16%) and improving pricing paves the way for a considerably better than expected 2Q. We note that the group has began to out preform the market with the OSX up 12% since June 1 vs. the S&P up 4%. Attractive oil prices, improving international spending levels, and compelling valuation are all reasons to be optimistic that the oil upcycle remains underway."
"Halliburton represents on of the most attractive stories in the industry right now, with an industry leading position in North America and growing market share domestically and internationally."
Halliburton serves several natural gas and oil companies worldwide in about 70 countries. These services include the production, exploration, and development of the oil and natural gas. The 2010-2012 earnings per share estimates by Susquehanna were raised from $1.39, $2.08, $2.71 to $1.46, $2.10, and $2.74.
The analysts wrote, "U.S. Land drilling is trending up 12% 2Q to date relative to 1Q. This, coupled with favorable service intensity (horizontal drilling is trending up 16%) and improving pricing paves the way for a considerably better than expected 2Q. We note that the group has began to out preform the market with the OSX up 12% since June 1 vs. the S&P up 4%. Attractive oil prices, improving international spending levels, and compelling valuation are all reasons to be optimistic that the oil upcycle remains underway."
"Halliburton represents on of the most attractive stories in the industry right now, with an industry leading position in North America and growing market share domestically and internationally."
Halliburton serves several natural gas and oil companies worldwide in about 70 countries. These services include the production, exploration, and development of the oil and natural gas. The 2010-2012 earnings per share estimates by Susquehanna were raised from $1.39, $2.08, $2.71 to $1.46, $2.10, and $2.74.
Wednesday, May 26, 2010
BP: (NYSE:BP) No To Live Video Feed of "Top Kill"
Apparently, BP (NYSE:BP) has changed their mind. Originally, BP was among much hesitation , going to allow the live oil spill video to run uninterrupted throughout their "top kill" attempt. They're now saying no, and have already cut the oil spill video as of early this morning. This is leading many to wonder why BP wants to shut out the millions of people that their oil leak has, is, and will continue to effect for generations.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
Friday, March 26, 2010
Goldcorp (TSE:G) Acquires Warrants and Shares from Terrane Metals (TSE:TRX)
Goldcorp Buys Warrants and Shares from Terrane Metals
Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.
National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.
Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.
Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.
Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.
National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.
Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.
Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.
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