The Speculative Stocks....

[vbin]

(02-29-2020, 10:21 PM)fenders53 Wrote:

(02-29-2020, 09:51 PM)vbin Wrote: Has anyone looked into WES and BKR? Both looks attractive. Wes is low becouse OXY is forced into selling assets and WES is one it might sell and BKR due to GE. 2-3 years from now there is a good chance they might be trading at double prices from here. Buffet has a good position he initiated in OXY with Charlie's approval.

I am thinking to initiate a full position in all 3.

Buffet loan sharked OXY IMO.  Good companies shouldn't be paying 8% interest.  That is going to choke them.  If OXY ever runs he can exercise warrants and sell into the rally.  He got a good deal on KHC as well, but that one blew up on him so far.  I don't chase his stocks when he got in at 50% off.  He always gets a great deal, and I am starting to see it is often at the common stock holders expense.  I love Uncle Warren, but when he enters a stock, I like to know the details.  

I'll go check those other tickers you mentioned.  I got my position in FCX.  I'll keep it small, and it is nothing but a trade.  It comes with a dividend but it is subject to be turned off when copper crashes.  They do mine a little gold and some other metals.  I will probably add a little FUN if they dip again.  The flu will cause that for sure if the US gets scared.

Thank you for sharing your thoughts. Here is what I think: the current div yield on oxy is 10%. More than what buffet is getting. The stoke is down more than 20% since he got the deal. Like you said he can exercise his warrents if the stock flies so it's in his interest that's stock does well. He will be watching. Oxy has some great assets. CEO clarified div isn't in danger for next 1 to 1.5 years and hopefully by then we will be able.to come down off this downward oil spiral. It isn't sustainable. Banks are already tightening the money on shale. If this continues, shale companies will go through real stress test, how many will survive? It's a cash crunch scenerio, unlike KHC. Oxy have been cutting debt aggressively. If i am not wrong they cut 35% already.