Joshua Byrini's Market View
Byrini's obeservations should not be considered recommendations, advice or suggestions to buy, sell or hold securities, commodities, commodity contracts, options, futures, warrants, insurance contracts, real estate, gemstones, art work or derivatives, as he is neither a registered securities, commodities or real estate broker, diamond merchant, art dealer, or investment advisor. These observations are for informational purposes only. In other words, you are on your own chief.Sunday, November 27, 2005
The Shipping News...
OMM is a modern, environmentally compliant fleet of tankers, that trades at 5 times earnings per share, but yields just 1.70 percent. It tends to pay its freight through large stock buybacks which bouy the share price when it starts to sink.
TNP, on the other hand, is a fleet of tankers that service independent oil companies, trading at 4.8 times its earnings per share, and yields 5.30%.
Tanker companies are also security plays, which is something not very well known, or at least considered. Tankers actually act as storage (safe storage) in contrast to land based tanks, which now require babysitters (expensive babysitters). So if you are bullish that the conflicts in the dessert have staying power, you might could do worse than pick tankers over Tasers.
Breakups, and Parts of a Whole
What do MSFT and MO have in common?
Let's see-- by most accounts, Microsoft is sitting on 40 billion dollars in cash with several products to launch in 2006 which should do what a new version of windows does for it's bottom line, as everyone running a computer has to update or migrate to open source products. So, the sum of it's parts is starting to look like it is greater than the price of the whole. By 2007, if MSFT creates 2 or 3 new streams of high margin income, the stock price should be more than it is now. How much more? It's trading at a real multiple of its earnings-- just 18, unlike Google, or Yahoo. It is way ahead of the options expensing problems other companies face (such at Sun Micro). And it has enough cash to raise the dividend and sweeten the pot if it needs an excuse to court investors. So, the sum of it's parts is starting to look like it is greater than the price of the whole.
MO, Marlboro will break itself into 3 parts next year, splitting the food from the US Tobacco producer from the International Tobacco producer, which makes about the only thing China's 1 Billion people seen to want to buy from the US. So, the sum of it's parts is starting to look like it is greater than the price of the whole.
Josh will be looking at the options on these stocks-- long leaps, and looking for entry points as the weak sisters shake out on down days (if there is one before New Years).
-- Tim Conners, Toady to Josh B.
OMM is a modern, environmentally compliant fleet of tankers, that trades at 5 times earnings per share, but yields just 1.70 percent. It tends to pay its freight through large stock buybacks which bouy the share price when it starts to sink.
TNP, on the other hand, is a fleet of tankers that service independent oil companies, trading at 4.8 times its earnings per share, and yields 5.30%.
Tanker companies are also security plays, which is something not very well known, or at least considered. Tankers actually act as storage (safe storage) in contrast to land based tanks, which now require babysitters (expensive babysitters). So if you are bullish that the conflicts in the dessert have staying power, you might could do worse than pick tankers over Tasers....
Breakups, and Parts of a Whole
What do MSFT and MO have in common?
Let's see-- by most accounts, Microsoft is sitting on 40 billion dollars in cash with several products to launch in 2006 which should do what a new version of windows does for it's bottom line, as everyone running a computer has to update or migrate to open source products. So, the sum of it's parts is starting to look like it is greater than the price of the whole. By 2007, if MSFT creates 2 or 3 new streams of high margin income, the stock price should be more than it is now. How much more? It's trading at a real multiple of its earnings-- just 18, unlike Google, or Yahoo. It is way ahead of the options expensing problems other companies face (such at Sun Micro). And it has enough cash to raise the dividend and sweeten the pot if it needs an excuse to court investors. So, the sum of it's parts is starting to look like it is greater than the price of the whole.
MO, Marlboro will break itself into 3 parts next year, splitting the food from the US Tobacco producer from the International Tobacco producer, which makes about the only thing China's 1 Billion people seen to want to buy from the US. So, the sum of it's parts is starting to look like it is greater than the price of the whole.
Josh will be looking at the options on these stocks-- long leaps, and looking for entry points as the weak sisters shake out on down days (if there is one before New Years).
-- Tim Conners, Toady to Josh B.
posted by BoxedMerlot # 10:51 AM 
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