NEWS #26

 

From February 22, 2015 to June 20, 2015

June 20, 2015

Tobby Connor/Gary Savage sends along this posting:

NOTE ON WHAT I AM DOING

I did some buying this week and will look to buy some Targa and EOG Resources, when those energy stocks fall with the rest of the crowd. I am also interested in some good old Hershey.

June 7, 2015

Tobby Connor/Gary Savage sends along this posting:

May 29, 2015

Tobby Connor/Gary Savage sends along this posting:

Here are some interesting links.

U.S. Economy Contracted 0.7% in First Quarter on NYTimes.Com

Canada’s GDP Contracts the Most Since 2009 on Bloomberg.Com

May 27, 2015

Tobby Connor/Gary Savage sends along this posting:

May 17, 2015

Tobby Connor/Gary Savage sends along this posting:

Here are some interesting links.

Depositors Flee Greece as Recession Rolls In on Bloomberg.Com

6 charts that show why traders can’t figure this market out on MarketWatch.Com

How many active mutual funds have beaten the S&P 500 in 8 consecutive years? on TheReformedBroker.Com

Why one of the smartest men on Wall Street is wrong about the shale oil boom on TheCrux.Com

Water Pricing in Two Thirsty Cities: In One, Guzzlers Pay More, and Use Less on NYTimes.Com

May 12, 2015

Tobby Connor/Gary Savage sends along these postings:

May 5, 2015

Here are some interesting links.

Why Elizabeth Warren Makes Bankers So Uneasy, and So Quiet on Bloomberg.Com

Three big reasons to get ready for a correction now on TheCrux.Com

One Reason I'm Confident There's More Upside in Stocks on DailyWealth.Com

The Number Of Volcanoes Erupting Right Now Is Greater Than The 20th Century's YEARLY Average on InvestmentWatchBlog.Com

April 24, 2015

Tobby Connor/Gary Savage sends along this posting:

April 6, 2015

OIL'S BIG WRITEDOWN

Greetings from one of the centers of the oil patch: Casper, Wyoming. My daughter, just recently laid off by Halliburton, drove to Gillette recently, a two hour drive away and a smaller city to Casper's north. My brother drove the same route a few days before her. Here is the report: DRILLING RIGS STACKED BY THE ROAD, MANY RIGS! Wyoming is down to 14 active rigs right now. I hear the New Mexico is down to one.

Many drilling projects have been shelved and many folks who earned a hundred thousand a year, last year, are out of a job, or have taken one for sixty and are grateful.

Nevertheless, oil production will continue to climb in the coming months until it doesn't. No one knows where the peak of production will be, and thus no one knows exactly where the bottom will be for WTI. But it is a safe bet that the WTI will be a lot lower this Summer than where it is now. The climb out of this hole, for the oil patch, can not even begin until the bottom is in place, and that will not be until the dog days are upon us, or even Fall. The climb out will then be a slow process as the once-burned Exploration and Production companies will not be anxious to become twice-burned.

Meanwhile, we have the write-downs to look forward to, a phenomena to which most traders and investors are completely oblivious. Here's the deal. Companies have stated their reserves based upon historic prices which are about double what they are in the real world right now. So the reserves reported by Companies are severely overstated. The SEC requires these companies to value holdings based on present value. Ouch!

The problem for the Companies will come when the present value of these assets is seen to be less than the capital expended to obtain them. That is when we will see WRITE OFF CITY. 2015 will be year of discontent for the Oil and Gas world, and there may be some bargains to be had, if only you have as much money as Buffet or T. Boone Pickens to gobble them up. Some careful observations may lead a few solitary investors to pick up scraps that the big boys leave behind.

Here are some interesting links.

So long, transistor: How the 'memristor' could revolutionize electronics on CNN.Com

We Just Got Some Ugly Numbers out of Texas on Bloomberg.Com

This little-noticed announcement could be great news for natural gas on TheCrux.Com

This indicator has predicted every major market plunge in the past 30 years. What it's saying now… on TheCrux.Com

What the Federal Reserve will do when the next crisis comes on TheCrux.Com

Is the U.S. Headed for a Recession? on DailyWealth.Com

Is the CPI Telling Us the Full Story on Inflation? on DailyWealth.Com

Americans Watched Their Incomes Shrink, Except For the Highest-Earners on Bloomberg.Com

March 29, 2015

Here are some interesting links.

What if what we are hearing from the Conservative Republicans, what if those words and phrases are just that.....words? What is the truth about what is happening to our economy? For those with an open mind, here is a different point of view.

Paul Krugman: Mornings in Blue America on NYTimes.Com

The biggest mistake investors are making right now on Fortune.Com

Confusing today's liquidity with tomorrow's on DailyWealth.Com

Company Thinks It Has Answer for Lower Health Costs: Customer Service on NYTimes.Com

Oil Drillers Push List of Worst-Rated Companies to Two-Year High on Bloomberg.Com

March 22, 2015

Please excuse the lack of posting on this page. I have been ill. In February I went to the hospital for pnemonia. While there, a doctor finally heard my irregular heartbeat which I have had all my life, but which is only rarely active. So, two weeks ago I underwent a quadrupel bypass, and am just now getting back to my pages.

I have been watching the markets and making a few moves. It seems to me that we are seeing U.S. markets swing into the old traditional 'sell in May and go away' environment. The hard numbers we are seeing about this economy do not justify the prices that people are paying for stocks. Jobs numbers are particularly weak, it seems to me. But, no matter, I think we will see record highs into and perhaps all the way through May. That is why I am betting on the Financials, as they tend to lead the rest of the markets. Meanwhile, the rising tide is lifting all boats including the oil/gas stocks. That will change this summer, as we see production numbers that will be setting records, even as the WTI slides below $42. It could go as low as $32.

But it does seem to me that with record levels of production, storage capacity will be tightly squeezed. Anyone building tanks will do well this summer. I am particularly interested in Chicago Bridge and Iron (CBI), which has a huge backlog of orders and is looking for a landslide of orders to come pouring in. I just need to find a good entry point for that play.

Here are some interesting links.

Sign of the Top From Amelia Island on DailyWealth.Com

Focus on growth for the middle class on WashingtonPost.Com

The Middle Class Has Gotten Smaller In Every State Since 2000 on HuffingtonPost.Com

February 22, 2015

Tobby Connor/Gary Savage sends along this posting:

Bender Home Directory