Stock Talk – April, 2014

Stock Talk

Thomas Lewis

Thomas Lewis

If I miss a webchat, is it possible to read the questions/answers a day later or so?
Tom Lewis

Investing Daily Service

Investing Daily Service

http://www.investingdaily.com/energy-strategist/chats/20013/040814-energy-live-chat-2/

Hi Mr. Lewis:

The chats are always available by the next day by logging into EnergyStrategist.com and then clicking on
“Events” and then “Live Web chats”. We have enclosed a link to yesterday’s chat.

Harold Williams

Harold Williams

Have been away from home and was doing my review to be sure was up-to-date.
Have noted several stocks listed twice: once in one of the portfolios and once on the “watch list”.
Is there a reason for this that I am missing OR just some clean up that needs to be done?
Thanks

Igor Greenwald

Igor Greenwald

The watch list is a holdover from prior management and I pay it very little mind, to be honest. If some of the stocks on it have since made it into the portfolio without getting deleted from the watch list, that’s an oversight I’ll fix. Thanks for pointing it out.

Harold Williams

Harold Williams

Igor:
While looking at the portfolio again, noticed the following stocks are still listed twice: 1. in a portfolio and 2. on the Watch List (which you describe as a carryover, but does cause confusion on the user level)
DVN Devon Energy
FSLR First Solar
MPC Malathon Petroleum
NOV National OilWell
TSO Tesoro
VRO Valero Energy
WLL Whiting Petroleum
Hope this helps you, Duane (Harold)

Walter T

Walter T

In the portfolios often there is a number such as #12 or any other number. I cannot find out from the website what these numbers mean. Please advise.

Thank you. Walt T

Igor Greenwald

Igor Greenwald

The numerical rankings under the Best Buys column denote a stock’s ranking on our list of Best Buys. That’s a recent addition to help subscribers prioritize our best ideas.

Guest User

Guest User

I am a brand new subscriber . I find no mention of IOC ? Do you have any analysis ,or thinking about this stock, that is advertised to be “sitting on a world class acreage in Papua New Gunea” ? Supposedly a lng plant is already in place and flow tests are very positive.
Thanks
Pete Byrne

Robert Rapier

Robert Rapier

HI Peter,

I had a bit to say about this back in December. Here is what I wrote then:

InterOil Corporation (NYSE: IOC) advertises itself as an integrated energy company operating in Papua New Guinea and the surrounding region. The company has four segments: upstream, midstream, downstream and corporate. The upstream segment explores, appraises and develops crude oil and natural gas structures in Papua New Guinea.

The knock on IOC is that it’s been a hype machine, more adept at issuing press releases and new shares than at finding and developing oil and gas. The company has nearly doubled the number of shares outstanding over the past five years, while operating income has been negative in three of the past four years. The share price has been volatile, rising 334 percent over the past five years but at times dropping steeply in a short period of time.

On Dec. 5, IOC issued an extensive press release trumpeting the sale to Total (NYSE: TOT) of an interest in its Papua New Guinea exploration. The IOC press release spun the sale as potentially worth billions to IOC, which has a current market cap of $2.6 billion. Indeed, that deal sounds like it could really make a huge impact on IOC, until you read the press release issued by Total. Total has indicated that its engineers will need to evaluate the prospects before any decision is made on payments. So the deal could be worth zero to IOC, and based on the company’s poor track record over the years in actually booking reserves many investors decided it was time to exit when it became clear that IOC’s spin on the deal was much different than Total’s. Shares fell 21 percent in pre-market trading on the day of the announcement, and are now down about 40 percent since the Total news hit.

IOC is not a company we have spent time covering, and is certainly not a candidate at this time for any of our portfolios due to its highly speculative nature. I view it as an inappropriate investment for all but the most aggressive speculators.

JN

John N.

Is it too early to rationally evaluate the prospects for GLOP? I entered GLOG under $10, so I’m a bit of a fan at this point.

Robert Rapier

Robert Rapier

I haven’t spoken to Igor about it, but this may be a good one for the weekly MLP Investing Insider. That’s not really designed for a deep dive, but it’s enough to discuss what the business and the financials might look like. If it’s really intriguing, then Igor could do a deeper dive for MLP Profits.

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