Continue reading Closing Bell: When gold starts paying dividends (AIG, NTRI, MOS, TM, GDX)

Closing Bell: When gold starts paying dividends (AIG, NTRI, MOS, TM, GDX) originally appeared on BloggingStocks on Tue, 06 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading T. Boone Pickens sees average oil price above $80 in 2010

T. Boone Pickens sees average oil price above $80 in 2010 originally appeared on BloggingStocks on Tue, 06 Oct 2009 13:20:00 EST. Please see our terms for use of feeds.

This oil trade takes the cake.

At the zenith of the speculative bubble in the oil patch -- when crude hit $147 per barrel in July -- you had everyone from T. Boone Pickens to Prince Alaweed touting $200-per-barrel oil by the end of the year.

Crude is now trading around $40 -- down $107 per barrel in less than six months. Unbelievable!

And this latest drop comes after OPEC voted to cut daily production by an eye-popping 4.2 billion barrels per day.

Looks like the world is awash in crude oil.

Needless to say, those euphoric longs in the oil stocks got destroyed. Most energy stocks lost 50% to 70% of their value during the course of the sell-off in crude.

And remember those television commercials with T. Boone and Chesapeake Energy (NYSE: CHK) CEO Aubrey McClendon pushing for the expansion of natural gas?

Well, natural gas prices are down 60% from their mid-year highs.

If you put money into T. Boone's Clean Energy Fuels Corp. (NASDAQ: CLNE) as recently as September, when the stock was trading at $20, you now own Mr. Pickens' vision for $5.

Continue reading 2008 Trades Gone Bad #5: The peak oil trade

2008 Trades Gone Bad #5: The peak oil trade originally appeared on BloggingStocks on Fri, 26 Dec 2008 14:30:00 EST. Please see our terms for use of feeds.

T. Boone Pickens faces investor withdrawals originally appeared on BloggingStocks on Tue, 28 Oct 2008 13:32:00 EST. Please see our terms for use of feeds.

The large hedge fund run by Texas energy king T. Boone Pickens has lost $1 billion this year. He bet that oil would go up. Instead, it went down. That makes his push for wind power and the use of natural gas to run cars look a little silly.

According to The Wall Street Journal," the downturn in energy has blindsided the industry veteran, leaving one of his hedge funds that focuses on energy stocks down almost 30% through August." Pickens says that oil will move back up unless the global economy goes into a very deep recession.

The loss make Pickens look like a fool. He has been lobbying both in Congress and in public that high oil prices are killing the U.S. economy. The U.S., he says, needs to move its energy consumption to natural gas and wind energy. His big push is to cut America's dependence on foreign oil.

His plan relies on converting the auto industry's manufacturing process to one that builds cars that use natural gas. The industry is moving toward electric power. He also wants to set up windmill farms all over the U.S. How these will connect into the current electricity power grid still has to be worked out. In other words, it may not work at all.

If oil prices keep going down, oil may still be the least expensive way to power cars and industry. The huge cost of turning the nation's infrastructure to operating on other energy sources is simply too great. And Pickens is losing his credibility as an energy expert if he can't even forecast the price of crude.

Douglas A. McIntyre is an editor at 247wallst.com.

T. Boone Pickens loses $1 billion on wrong oil bet originally appeared on BloggingStocks on Wed, 24 Sep 2008 09:45:00 EST. Please see our terms for use of feeds.

"We've looked at several ways to play anticipated growth in wind energy; we've also considered titanium makers for that industry's ties to the production of lightweight, modern aircraft," notes Bill Martin.

In his BullMarket.com, he explains, "While the two trends might not appear to have much in common at first glance, Hexcel Corp. (NYSE: HXL) offers a way to play both the aircraft and wind markets.

"The connection is the lightweight, composite materials Hexcel makes that are used by producers in both sectors. Hexcel develops and manufactures advanced structural materials.

"It is the largest U.S. producer of carbon fiber; the world's largest weaver of reinforcement fabrics; and the number-one producer of composite materials.

"Its product was initially developed for the aerospace industry, but is now used in a wide range of applications -- from golf clubs to satellite arrays, and from the rotor blades of wind turbines to life-saving monocoques for Formula 1 race cars.

"It's been a rollercoaster ride for Hexcel's stock in the past 12 months. The shares hit their one-year peak of $27.19 in December 2007; by January 22nd they had plummeted to $17.. The shares rebounded through May, only to fade again. Year to date, HXL is off about 15%.

Continue reading Hexcel (HXL): Composite gains?

Hexcel (HXL): Composite gains? originally appeared on BloggingStocks on Mon, 25 Aug 2008 13:06:00 EST. Please see our terms for use of feeds.

T. Boone Pickens does not care if the price of oil is falling. His opinion is that most of the drop is over and that his plan for wind energy is still viable and necessary for future U.S. independence from crude imports.

Pickens could not be described as faint-hearted. Rumors are that his $7 billion BP Capital hedge fund took a 35% haircut in July by betting the wrong way on oil and gas. It is a paper loss, but must sting nonetheless.

Some argue that Pickens is old and monumentally rich so gambles on wind and oil don't mean much for his own fortune. That could indicate that his conviction about wind-powered energy is not based on greed. Since he has spent his life aggressively accumulating wealth, that is not likely.

What is likely is that he thinks oil prices may stay very high and that his alternative energy will do remarkably well because it is infinitely renewable. If so, it is too bad his hedge fund cannot invest a few billions into wind technology. He can't afford another 35% loss. At some point his convictions may put him in the poor house. At least as it would be viewed by a billionaire.

Douglas A. McIntyre is an editor at 247wallst.com

Pickens sticks with alternative energy plan despite headwinds originally appeared on BloggingStocks on Fri, 15 Aug 2008 10:40:00 EST. Please see our terms for use of feeds.

T. Boone Pickens dedicating $58 million to alternative energy marketing originally appeared on BloggingStocks on Fri, 11 Jul 2008 14:48:00 EST. Please see our terms for use of feeds.

Book review: Joe Nocera's Good Guys & Bad Guys originally appeared on BloggingStocks on Wed, 09 Jul 2008 17:55:00 EST. Please see our terms for use of feeds.

Yahoo deserves every shareholder lawsuit it gets originally appeared on BloggingStocks on Tue, 03 Jun 2008 11:44:00 EST. Please see our terms for use of feeds.

Yesterday was a tough day in the markets, with the Dow falling 199 points. But, if you follow some of the legends of finance - such as Carl Icahn, T. Boone Pickens and The Blackstone Group's (NYSE: BX) Steven Schwarzman - you will notice that they are getting aggressive.

Keep in mind that these guys have been through multiple market cycles. And, if history is any worthy benchmark, it's during times of instability where the big money is made.

Pickens is focusing on the energy industry. He sees major demand/supply imbalances and is buying various stocks. He is also interested in natural gas and alternative fuels.

As for Icahn, he's doing what he does best - shareholder activism. He senses when companies are vulnerable and seems to relish an attack on corporate managements and boards. Of course, he's gearing up for a fight with Yahoo! (Nasdaq: YHOO). Interestingly enough, he persuaded Pickens to buy 10 million shares.

And, with Schwarzman, he's buying up the bank debt of companies that went private. Because Blackstone sees many deals, it has an extensive database of opportunities.

In other words, the legends of finance are confident in the long-term. They are making some big bets -- based on lots of experience and due diligence -- and not listening to the short-term noise. All in all, these are some valuable lessons for investors.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Icahn, Pickens & Schwarzman: Time to listen to the pros originally appeared on BloggingStocks on Wed, 21 May 2008 10:54:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barnes & Noble Inc (NYSE: BKS) is considering a bid for rival bookseller Borders Group Inc (NYSE: BGP), the Wall Street Journal reported, a move which would allow Barnes & Noble to improve profits and reduce costs. Antitrust issues could prevent a deal.
• The Wall Street Journal also reported that Carl Icahn's effort to remove Yahoo! Inc's (NASDAQ: YHOO) board has picked up new supporters, including T. Boone Pickens, who acquired a 0.75% stake. Some Yahoo shareholders believe it is still too early to predict whether Icahn will be able to carry July 3's shareholder vote.
• A Financial Times investigation discovered that Moody's Corporation (NYSE: MCO) incorrectly awarded top ratings to billions of dollars to debt products due to an error in its computer models. Moody's said it is in the process of "conducting a thorough review" of the rating of the constant proportion debt obligations, which should have been up to four notches lower.

• According to the people briefed on the matter, the New York Times reported that the buyout of Penn National Gaming Inc (NASDAQ: PENN) by Fortress Investment Group (FIG) and Centerbridge Parters may involve revised terms. The sources said the negotiations may "delay or even imperil" the deal.

Newspaper wrap-up: Barnes & Noble may bid for Borders originally appeared on BloggingStocks on Wed, 21 May 2008 08:00:00 EST. Please see our terms for use of feeds.

USA Today reports that oil billionaire T. Boone Pickens is placing a $2 billion bet on wind power. Pickens' Mesa Power plans to build the Pampa Wind Project in the Texas Panhandle. It will eventually cover 400,000 acres and generate enough power for more than 1.3 million homes -- making it the largest wind farm in the world.

And Pickens is helping General Electric Company (NYSE: GE) in the bargain. That's because he's buying GE turbine technology. GE is expected to deliver 667, 1.5-megawatt wind turbines in 2010 and 2011. Jeffrey Immelt, GE Chairman and CEO said, "As America's demand for energy escalates, it is clear that wind can and will play a bigger part in meeting that need. We're excited to partner with an energy visionary like T. Boone Pickens to bring our wind technology to the marketplace."

With oil hitting $127 a barrel, I hope this project is the first of many. It will take many different sources of alternative energy to reduce U.S. demand for black gold. Wind power is certainly a good alternative. And if Pickens and GE get richer in the process, that's fine by me.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He owns GE shares.

T. Boone Pickens wagers $2 billion on wind power originally appeared on BloggingStocks on Fri, 16 May 2008 16:49:00 EST. Please see our terms for use of feeds.

• DJIA 12,532.60 (-16.04; -0.13%)
• S&P500 1,352.99 (+3.11; +0.23%)
• NASDAQ 2,341.05 (+14.30; +0.61%)
• 10YR-TBond 3.492% (-0.03)

Continue reading Closing Bell: Where'd that bear go?

Closing Bell: Where'd that bear go? originally appeared on BloggingStocks on Tue, 25 Mar 2008 17:48:00 EST. Please see our terms for use of feeds.

It's been a big day for Chesapeake Energy Corp. (NYSE: CHK). The company said that it has made a big gas discovery in Shreveport, Louisiana, which could have material impact on its output. The reserves could amount to 20 trillion cubic feet, and Chesapeake is pumping up its capital expenditures by $275 million this year and $675 million in 2009.

No doubt, the expectation is that there will be some serious needs for energy, despite the recent slowdown in the US economy. It certainly helps that natural gas prices have been particularly strong. And, for the most part, natural gas is critical for basic needs, such as electricity and heating. Oh, and it tends to be cleaner.

On CNBC today, energy tycoon T. Boone Pickens said that he owns Chesapeake's stock (and yes, he had some nice things to say about the company). He also thinks that oil will remain above $100 per barrel for the second half of the year.

In today's trading, Chesapeake's stock price is up 3% to $46.45.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Chesapeake Energy: A gusher? originally appeared on BloggingStocks on Tue, 25 Mar 2008 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Insights: Pickens says global oil production has peaked

Insights: Pickens says global oil production has peaked originally appeared on BloggingStocks on Tue, 23 Oct 2007 15:38:00 EST. Please see our terms for use of feeds.

Few people know the energy industry as well as T. Boone Pickens and, if you like to follow 13-D filings in search of investment ideas, you may want to take a look at InterOil (AMEX: IOC) because Pickens has increased his stake in the company to 9.9%.

It's interesting to see the once-feared raider involved in InterOil because it looks like a very speculative investment: InterOil is working on a natural gas project in Papua New Guinea, but currently has no proven reserves and a lot of debt. All this for a market cap of just south of $1 billion.

But if you're going to speculate on an energy stock, you could probably do a lot worse than to follow Pickens into InterOil. No one knows exactly what his intentions are -- he won't talk and neither will the company -- but the presence of such a prominent oilman should help the company's future fundraising efforts. The shares have been extremely volatile of late, but the upside of a super-investor may not be priced in yet.

I would continue to watch this one from the sidelines for now.

T. Boone Picks up 9.9% of InterOil originally appeared on BloggingStocks on Mon, 13 Aug 2007 07:45:00 EST. Please see our terms for use of feeds.

Clean Energy Fuels (NASDAQ: CLNE) accomplished a mildly solid showing with their IPO on Friday, although the project was scaled back from previous expectations. Well-known oil man T. Boone Pickens, principle shareholder of the company, had upped his expectations in March 2007 from $287.5 million initially to $354 million, as reported by Orange County Business Journal. The expected IPO share price had been in the $13 to $17 range on an anticipated volume of 20 million shares. On Friday, however, expectations were lowered and 10 million shares were sold at $12 and the shares rose in value marginally.

It's been speculated that economic conditions were mostly to blame for both the revised expectations as well as the tepid IPO performance. Clean Energy Fuels is an established company with at least some profitable history. The IPO is expected to fund growth in manufacturing capacity and product outlets, as well as to underwrite growth of the company's customer base. Clean Energy provides natural gas for municipal service trucks, buses, and other fleet vehicles. In 2006, Clean Energy had sales of $91 million but showed an operating loss of nearly $9 million. Currently the company has an estimated market value of about $600 million, and Mr. Pickens owns about 73% of the company.

Clean Energy Fuels IPO a bit tamer than hoped originally appeared on BloggingStocks on Tue, 29 May 2007 13:55:00 EST. Please see our terms for use of feeds.

ConocoPhilips (NYSE:COP) shares tumbled today after the third-largest U.S. oil company said fourth-quarter production would be below forecasts. Higher output in Alaska and the U.K. wasn't able to offset declines in the Timor Sea, conrtinental U.S. and Libya, Reuters said. The company's shares last traded at $66.49, down $1.70 or 2.49 percent.

Exxon Mobil (NYSE:XOM) and Chevron Corp (NYSE:CVX) also fell as oil prices continued to drop They have now hit $56 a barrel, according to the Associated Press. Does that mean cheaper gasoline prices will follow? Texas oilman T. Boone Pickens for one expects oil to average $70 this year. I am not sure they will hit those levels, but I think the days of really cheap oil are over.

Still, as Bloomberg News points out. the unbelievably mild winter that we've had this year is affecting the market. Prices had their biggest one day drop since December 2004

``We're getting follow-through from yesterday because the picture hasn't changed,'' said John Kilduff, vice president of risk management at Fimat USA, told Bloomberg. ``The temperature forecasts keep going up, which, combined with a relatively quiet geopolitical picture, is clobbering both crude and heating oil.''

Expectations that world oil supplies will soon peak and then sharply decline are incorrect, according to Cambridge Energy Research Associates. The research firm found that the remaining global oil resource base is 3.74 trillion barrels, three times as large as the people who believe supplies have peaked.

ConocoPhilips fourth quarter output is below forecast; oil prices continue fall originally appeared on BloggingStocks on Thu, 04 Jan 2007 15:32:00 EST. Please see our terms for use of feeds.