On September 26, 2014, Bill Gross announced his sudden departure from PIMCO, the firm he co-founded in 1971. This shake-up comes at an already troubling time for the investment company after the heir apparent, Mohamed El-Erian, announced his resignation earlier in the year. The firm’s flagship Total Return fund has seen negative outflows for 16 … Continue reading Bill Gross’ Departure from PIMCO
Those who follow BCM know that I've been watching Russian equities for some time. In the past, I've joked that Russia has more to offer than just stiff vodka and camaraderie -- but it's true. For example, Russia has vast deposits of natural resources including coal, timber, minerals, and natural gas. A little-appreciated fact … Continue reading More Than Camaradarie
SolarCity is up by more than 535% since its IPO. Since the company is still reporting losses, it's easy to think that its stock is expensive. However, there are some unique challenges to understanding what SolarCity is worth. Here are two issues to consider when trying to value the stock. Reported earnings versus reality In 2008, … Continue reading Is it Time to Go Solar?
While lumber doesn't get as much attention as its popular cousins oil and gold, it too is a scarce and valuable natural resource. What's more, I think the secular case for lumber is strong due to how the world is changing. As countries develop and industrialize, they typically follow a pattern of building and resource … Continue reading Yelling Timber!
For those living off a fixed income, the current interest environment is, to say the least, quite unsavory. Extending out to 30 years on the Treasury curve only fetches a paltry 3% (and a taxable 3% at that). This has interest-starved investors loading up on junk bonds and leveraging up bond portfolios (risk parity anyone?). … Continue reading Last Yield Standing
Back in August, I made my case for Helmerich & Payne (HP) at $45. When it hit $54 dollars in November I recommended taking some profits. On Friday, HP closed at $61, exceeding my fair value estimate of $59 per share. I still like Helmerich & Payne as a company, but at $61 it's time to finish taking your profits. From $45 that's … Continue reading Ring The Register
Back in September, I made my case for the "other HP," Helmerich & Payne. Since then, HP has advanced from $46 to over $52. I still like the company, and I think the stock will advance further long term. That being said, this is not a bad gain for a few week's time, and it's reason enough to start ringing the … Continue reading Don’t Hog HP
Most people probably think of Hewlett-Packard when they hear "HP." This is almost certainly the case for investors who have followed Hewlett-Packard's struggles. However, I'm not writing about that HP, I'm writing about another HP that many people have never heard of. Helmerich & Payne (HP) is a $4.9 billion oil and gas company based in the US. It provides contract drilling … Continue reading The Other HP
In fifth grade, I remember the "cool kids" at my school wore Guess jeans and a lot of hairspray (I wasn't one of them). While hair spray has lost its popularity, Guess? Inc. has grown into a $2.4 billion dollar company that sells apparel in 90 countries around the world. Last week, Guess reported earnings that missed analyst expectations and its stock price fell by more than 21%. The negative … Continue reading Second Guessing
The first quarter was full throttle "risk-on" for U.S. equity markets. The S&P 500 came out of the gates screeching and clocked more than 10% for the quarter. This rally seems to have rekindled animal spirits, and now the strength of the U.S. economic recovery is the toast of the town. From a macroeconomic perspective, a continued expansion would imply further equity market strength. … Continue reading Fast Money