by Travis Johnson, Stock Gumshoe | September 12, 2014 10:30 pm
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/reviews/the-wealth-advisory/friday-file-vic-impressions-altius-seadrill-and-how-to-make-netflix-pay-you-internet-royalties-for-every-movie-it-rents/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
Thanks, Travis. Love your sense of humor!
Fun read, as always! And I promise to restrain my initial urge to buy MAUXF asap!
Starboard who you mentioned from the VIC, has just made “national” headlines concerning their effort to the board positions from Darden (Olive Garden etc). The shareholders are going to vote soon on whether or not to replace the board with Starboard. My question is: Do you think Darden is a buy now, or wait and see what’s going to happen with the board/vote?
Doesn’t strike me as all that cheap after the Rubio starboard started several months ago — lots of moving parts that might create value, but looks like a hard slog to me unless Olive Garden suddenly becomes super-popular again. Hard for them when everyone who might pay full price is terrified of gluten.
I can not find my way in your labyrinth
need a guide
TRAVIS – DEAR – WHAT WOULD WE (i.e. I) DO WITHOUT YOU. I—– BELIEVE IN YOOOOOOU! :-)))
TAKE CARE AND GOD BLESS- ALWAYS!!
It may not be a good time for Seadrill and other ocean rigs, as the fracking business yields enough oil without the environmental risk, like the gulf spill. At some point these offshore companies will hit bottom, but will probably be related to an increase in oil prices. I will look into COR, maybe buy. Thanks
Travis,
What do you think about starting a long term position in SDRL at this time?
I’ve been waiting for a better opportunity and now that it has dipped below $30 I was thinking of starting a position. If they’re going to lose Russia, how low do you think this pps could go? I believe the future with deep water drilling is sound considering the worlds increased consumption so if you didn’t already own SDRL would you be looking for an entry point now and average down if it drops further or would you wait. I have a 15 year timeline before I retire. Thank you in advance for any wisdom you might share.
Jennifer
I expected it to bottom out above this price, given what I think is a sustainable dividend with their current backlog and cash flow — but if sentiment or the oil market change substantially and the rig demand doesn’t pick back up in 18 months it could certainly fall still further. I can’t give personal advice, I haven’t sold my shares or bought more in the current downdraft.
Any ideas what is happening to Altius today? Buying opportunity?
They tend to go down whenever Alderon gets further selling pressure, so that’s probably part of it — we’re getting close to the point where the Kami mine isn’t priced in to Altius at all anymore, but at this price I think Altius still needs Kami to get built eventually. The only real Altius news is that they optioned one of their newly acquired projects from the Carbon Development Portfolio — it’s a coal project, fairly advanced, but they basically get some milestone payments and, if the project is actually built over the next four years, would have another royalty on that mine. Not much up front — Altius gives them access to the project, the partner, an Australian company, gives Altius $500,000 this year and owes $10 million to Altius if they go forward with the mine eventually, plus a sliding gross sales royalty of up to 1.5%.
This is the core competency of Altius, using a big swathe of land and some historical exploration data to package properties, partner them off to other companies to do all the exploration and development, and get some kind of equity participation for free as well as a royalty off the top at the very end. They’ll probably be doing that with several other projects on the Carbon Development Partnership land that they acquired in May, and it won’t likely hit the bottom line for a few years. I’d say this is a mild but not unexpected positive, so if the stock is going down just because of that I’d be buying… but I expect the falling iron ore prices and the trouble with Alderon’s Kami mine are still the bigger negatives driving Altius down. A couple more dollars of punishment from iron ore and Kami won’t matter much at all to Altius anymore and loses any more downside potential.
Question: Yahoo was hyped as a good way to get in on the Alibaba deal since it owned
24% of baba’s stock. Sounded reasonable to me. Since the IPO, Yahoo’s stock has steadily decreased to as low as $38. Why?
“Sell on the news” for the most part, I’d guess … plus the realization that YHOO’s remaining stake in Alibaba and Yahoo Japan are the only two assets anyone cares about, and they may not be able to sell them without incurring a big tax payment.
Altius and Seadrill? I wouldn’t touch either stock. Great way to lose money. Buy Alibaba instead.
Robert: Are you in any way related to a Rosaleen Crotty from Kilkenny (Ireland)??
I am married to her and just thought, hey there might be another connection here!! As you might know the Irish love to make this kind of connections and since I am married to an Irish woman it has rubbed off a bit…anyway have a great Sunday!