Continue reading Serious Money: Chavez & Gaddafi, Real Blues Brothers

Serious Money: Chavez & Gaddafi, Real Blues Brothers originally appeared on BloggingStocks on Thu, 24 Feb 2011 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Ignoring Europe's Lead (OI, NTRS, AAPL, MSFT, COH, ZRAN, F, LXK)

Closing Bell: Ignoring Europe's Lead (OI, NTRS, AAPL, MSFT, COH, ZRAN, F, LXK) originally appeared on BloggingStocks on Tue, 26 Oct 2010 16:00:00 EST. Please see our terms for use of feeds.

When you are in a hole, stop digging -- no expression better exemplifies the situation in Venezuela caused by Hugo Chavez and his government. Obviously, this is not something they understand, as the current administration keeps digging the Venezuelan economy into a deeper hole, intensified by its attempt to nationalize rigs owned by a U.S.-based company.

On Wednesday, Venezuelan Oil Minister Rafael Ramirez issued a statement that Petroleos de Venezuela SA, the state oil company, was going to nationalize 11 oil rigs owned by Helmerich & Payne, a Tulsa, Oklahoma-based drilling company.

Continue reading Hugo Chavez Government to Nationalize U.S. Company Rigs

Hugo Chavez Government to Nationalize U.S. Company Rigs originally appeared on BloggingStocks on Fri, 25 Jun 2010 10:40:00 EST. Please see our terms for use of feeds.

Continue reading Hugo Chavez Racing Toward Economic Peril

Hugo Chavez Racing Toward Economic Peril originally appeared on BloggingStocks on Tue, 16 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I own shares of CX but not XOM .

Hugo Chavez wants those bad capitalists to bail him out of a jam originally appeared on BloggingStocks on Thu, 15 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

U.S. consumers have another reason to worry about gas prices. Two of the largest oil-producing nations in the world are forming a military alliance, and neither nation likes the U.S.

According to The Wall Street Journal, "Venezuela's President Hugo Chávez signed new energy agreements with Russia on Friday, shortly after obtaining a $1 billion loan to buy more Russian arms."

Chavez has kicked a number of U.S. and EU oil companies out of his country as he has nationalized the industry. It would not be beyond imagination that Russia and the South American nation would use a combination of oil and guns to try to weaken U.S. influence in its own hemisphere and force America into more military spending to patrol the regions to its south.

Chavez has already begun spreading money around to his neighbors in the hope of being viewed favorably. Having a stronger military presence should help him make the case that he can keep the U.S. from using its power to push him out of his role as the most powerful political figure north of Brazil and south of Mexico.

Continue reading Another problem with oil: Russia gives Venezuela cash

Another problem with oil: Russia gives Venezuela cash originally appeared on BloggingStocks on Sat, 27 Sep 2008 15:40:00 EST. Please see our terms for use of feeds.

With oil prices falling, some members of OPEC would like to see price cuts to put upward pressure on crude. That would make sense. It would bring members of the cartel more money and stretch out the pace at which they need to ship their current reserves.

Venezuela, where the head of state Hugo Chavez seems to have no love for the U.S., has lobbied fellow OPEC members hard to dial back oil shipments. The Arab states may not be so eager. According to Bloomberg, "Saudi Arabia, the world's biggest producer and de facto leader of the 13-member Organization of Petroleum Exporting Countries, the United Arab Emirates, Qatar, and Kuwait may reject calls from Venezuela and Iran to trim supplies at its Sept. 9 meeting in Vienna."

Increased cash flowing into the Middle East is feeding sharp increases in inflation, but that may only be a small part of the reason behind the motivation to do nothing with fuel supplies.

Saudi Arabia and its neighbors know that extremism continues to grow in the region. They are also not geographically far removed from the trouble in Georgia. The nation, which is at "war" with Russia, is close to the norther border of Iran. In other words, there is more than one threat to stability in the region.

The United States keeps a tremendous military force in and around Saudi Arabia. The kingdom may not want to go any further than it has to alienate America.

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

Saudi Arabia may save West at OPEC meeting originally appeared on BloggingStocks on Sun, 07 Sep 2008 14:10:00 EST. Please see our terms for use of feeds.

In the margins of Barron's this week there was a smallish note about the government of Venezuela nationalizing Cemex's (NYSE: CX) operations in that country. For some reason the government of Hugo Chavez thinks that stealing all of the private companies in 'his' country will lead to greater prosperity for 'his' people.

While it is a long journey from Venezuela to Zimbabwe, with its exponential inflation rate and a near-total economic breakdown, every journey begins with a first step. Mr. Chavez will move much closer to this inevitable outcome if he continues on his chosen path.

Motley Fool has a good write-up on the subject in which they detail the sour relations between Chavez and foreign businesses. Chavez recently offered to re-open negotiations with Cemex, but since he has already decided to take the company, that offer is suspect -- you can't negotiate with a gun pointing at you. To date, Chavez has nationalized the telecommunications industry, electricity, and oil. How many steps down the road is that? Why would anyone want to invest in Venezuela?

Continue reading Could Venezuela become Zimbabwe? Ask Cemex

Could Venezuela become Zimbabwe? Ask Cemex originally appeared on BloggingStocks on Tue, 26 Aug 2008 14:15:00 EST. Please see our terms for use of feeds.

At this juncture, investors/readers thinking about speculating a little in oil via shares in the United States Oil Fund (AMEX: USO) or via an integrated oil company should think again.

With the U.S. stock market meandering and the nation's economic doldrums continuing, the urge can build in investors, particularly those less-experienced, to try something daring.

However, the oil market is currently in a tug-of-war between the geopolitical concern-oriented bulls and the global economy slowdown-oriented bears.

In other words, the oil market is about as balanced -- or as divided -- as it has been in about two years, so says energy trader Jim Dietz. Oil closed Friday up $1.02 to $125.10 per barrel. Oil is down about 15% from its all-time high of $147.27 registered on July 11, 2008, but is still up about 100% over the past year and about 400% since 2000.

Continue reading Oil market caught in bullish-geopolitical, bearish-economy tug-of-war

Oil market caught in bullish-geopolitical, bearish-economy tug-of-war originally appeared on BloggingStocks on Sat, 02 Aug 2008 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Venezuela starts collecting new windfall profits tax on oil companies

Venezuela starts collecting new windfall profits tax on oil companies originally appeared on BloggingStocks on Fri, 18 Apr 2008 14:47:00 EST. Please see our terms for use of feeds.

You may file this under: It's about time.

I've been patiently waiting for something to be done regarding the seizure of Venezuelan oil infrastructure by communist dictator Hugo Chavez. It appears that time has come, with the help of Exxon Mobil Corp. (NYSE: XOM). As reported by Reuters, approximately $12 billion in Venezuelan assets have been frozen. It's just too bad that John F. Kennedy isn't still around. He'd have already parked an armada of gunboats a mile off the sunny shores of Venezuela. There's a limit to the amount of guff we should take from an out-of-control communist dictator.

Continue reading Exxon puts the smack-down on Hugo Chavez: Court freezes Venezuelan assets

Exxon puts the smack-down on Hugo Chavez: Court freezes Venezuelan assets originally appeared on BloggingStocks on Sat, 09 Feb 2008 12:40:00 EST. Please see our terms for use of feeds.

News that Venezuelan dictator Hugo Chavez urged his Latin American allies on Saturday to begin withdrawing billions of dollars in international reserves from U.S. banks, warning of a looming U.S. economic crisis, begs the questions: Is Hugo an astute financial planner who feels the need to preach global diversification, or is his ulterior motive, to confiscate these reserves.

"We should start to bring our reserves here," Chavez said. "Why does that money have to be in the north? ... You can't put all your eggs in one basket." That sure sounds like it's a direct quote from a financial planning 101 course.

Of course many would postulate that Hugo is just trying to stir up trouble, as good dictators are wont to do. With the recently launched ALBA -- Bolivarian Alternative for the Nations of Our America -- organization sure to be an economic powerhouse, with such countries as Nicaragua, Bolivia, and Cuba, and the newest addition, the Caribbean island of Dominica, should Hugo's neighbors to the north be worried?

Would you be worried if Dominica pulls reserves? If I was Dominica I would be worried that Hugo is setting you up to raid the purse of ALBA and confiscate all your hard earned money. Dominica, watch out!

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no positions in any stock mentioned as of 1/27/08

Hey, Chavez: Want to confiscate all the repatriated money? originally appeared on BloggingStocks on Sun, 27 Jan 2008 16:40:00 EST. Please see our terms for use of feeds.

Over the weekend there was a referendum in Venezuela that would have scrapped constitutional the term limits for president Hugo Chavez. He has been president of Venezuela since 1998 and constitutional term limits will not allow him to run again in for reelection in 2012. The left- leaning Chavez has been following in the steps of Fidel Castro and turning Venezuela into a communist state. He has enacted emergency powers, nationalized oil infrastructure, expelled foreign missionaries and allowed crime to run rampant. In order for him to constitutionally stay in office though he needed to get rid of the presidential term limits. That referendum this weekend failed, which is good news for democracy.

Venezuela is the forth largest oil exporter to America after Canada, Saudi Arabia, and Mexico. About one half of its 2.3 million exported barrels a day come to the US representing about 9% of all US oil imports. Like Iranian President Mahmoud Ahmadinejad, Chavez likes to talk and can move oil prices higher with off handed remarks and his railing against US foreign policies.

The Venezuelan people led by Chavez have headed down the road to socialism and almost a Cuban style dictatorship. While by no means the end of the story, this referendum is a win for democracy and should help the long term stability in the region which is important for US oil prices. Exxon Mobil (NYSE: XOM) and ConocoPhillips (NYSE: COP) have both been had investments in the country in past years.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

Chavez referendum fails -- good news for oil originally appeared on BloggingStocks on Mon, 03 Dec 2007 13:01:00 EST. Please see our terms for use of feeds.

Hugo Chávez, the head of Venezuela, is hardly the most stable leader of a large nation. He may rank with Kim Jong il of North Korea in a race for odd-ball national presidents.

The mental state of the chief of a South American country may not seem terribly important until, that is, he threatens to cut off the supply of oil to the U.S. According to The Wall Street Journal (subscription required), "in a fiery speech before tens of thousands, President Hugo Chávez alleged the U.S. was planning to sabotage a vote Sunday on proposed constitutional changes and threatened to cut off oil shipments if Washington did so."

The odds that the CIA or some other organization is actually trying to mess with the elections in Venezuela are fairly small. But, given the history of the American intelligence community, they cannot be ruled out altogether.

Humor aside, if Mr. Chávez does make good on his threat, even if only because he is mad, the effect could be much greater than the explosion last week on one of the oil pipelines between Canada and the U.S. Hugo can take the price of a barrel of crude up to $100 all by himself.

As December rolls in, oil watchers will be turning their attention south. Oil's assault on $100 was turned back last week, but that was not the end of it.

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

As politics in Venezuela get dicey, oil may rise again originally appeared on BloggingStocks on Sat, 01 Dec 2007 13:40:00 EST. Please see our terms for use of feeds.

Stop for a moment and give Exxon (NYSE: XOM), British Petroleum (NYSE: BP) and Chevron Corp. (NYSE: CVX) some considered thought. If you're into investing in oil, I want you to think about just exactly whose company you're showing favor to. More than ever it's time to pull the plug on Hugo Chavez by shifting your investment dollars away from Venezuelan interests and by putting Hugo Chavez's Citgo gas stations on notice. Most of America has no clue about what Hugo Chavez really is. Let me frame this for you.

You wouldn't buy groceries from a communist dictator, would you? Would you buy school textbooks from the likes of Joseph Stalin? Would you buy shop tools from the likes of Adolph Hitler? Would you go to a fresh fish market run by Fidel Castro? If you're a concerned American who's even marginally thoughtful about world history and current events, your answers to the preceding questions should be a resounding no.

If you answered no to the above questions, then why in the world would you buy gasoline from Hugo Chavez? Are you aware that Venezuela is negotiating to buy Russian submarines? I'll guarantee you that it doesn't want those subs for hunting tuna. Do you know Hugo Chavez is fully prepared to sink U.S. navel vessels if we need to attempt a blockade of Venezuelan oil transports? Hugo Chavez is actively building an offensive military and I shouldn't need to remind you that Venezuela is just a stone's throw away from your homeland. The EagleSpeak blog reports that, "Venezuela ordered weaponry from Russia worth $3.4 billion, including 24 Su-30MK2V Flanker fighters, Tor-M1 air defense missile systems, Mi-17B multi-role helicopters, Mi-35 Hind E attack helicopters and Mi-26 Halo heavy transport helicopters. ...Venezuela has become the world's second-largest importer of Russian weaponry after Algeria, which signed arms deals with Russia worth $7.5 billion."

You need to take heed of the fact that even the Venezuelan people are protesting their distrust for Hugo Chavez after he shut down Radio Caracas television for speaking in opposition against him. The Sea to Shining Sea blog comments that, "... In the wake of the RCTV protests, Chavez launched an offensive against the remaining opposition station, Globovision, and CNN, accusing them of destabilizing his government. ...The day will come when Venezuelans will not be able to stage opposition protests at all -- just like in the land of Chavez's mentor, Fidel Castro." Hugo Chavez doesn't like opposition, he hates America and he despises Israel.

The one saving grace that we may have in this situation is that Hugo Chavez is on a very "hand to mouth" budget. His cash reserves are relatively fast moving. He turns around his money very quickly and any interruption in his cash flow has immediate and significant consequences. It's time to put a serious knot in Hugo Chavez's plans for America and it should be very easy to do. Give serious consideration to where you will place your oil investment dollars and doublecheck the name on the gas station sign before you fill your fuel tank from now on. If the sign says Citgo, you may want to look down the road.

That is of course unless you want to make life easy for a communist dictator.

CVX, XOM, BP: It's time to send Hugo Chavez a message originally appeared on BloggingStocks on Sat, 16 Jun 2007 13:20:00 EST. Please see our terms for use of feeds.

Hugo Chavez may be in a tough spot originally appeared on BloggingStocks on Wed, 10 Jan 2007 14:23:00 EST. Please see our terms for use of feeds.