A Brief Update on Greece

Although the Greek economy looked like it was beginning to achieve liftoff in late 2014, its progress was set back in early 2015 by the newly-installed Tsipras administration’s effort to obtain major changes to the country’s bailout program. Greece’s compliance with the key provisions of that program was slipping even before the election, but the new administration reversed course on many reforms during renegotiations with its EU creditors. Continue reading

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Unit Corp Returns to Growth Mode

Unit Corporation is a diversified oil & gas company based in Tulsa, OK.  Founded in 1963, the company was originally a contract driller.  Over the years, it expanded into oil & gas exploration and production and mid-stream services (i.e. gathering, processing, treating and sometimes buying and selling natural gas). Continue reading

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A Quick Look at Tidewater’s Chapter 11 Plan

Tidewater, the largest publicly-traded operator of offshore vessels and marine support services for the offshore oil & gas industry filed for Chapter 11 bankruptcy proceedings on May 17, one week after announcing that it had reached agreement with creditors on a pre-packaged plan. The company provided a rough outline of the terms of the agreement in a press release, which makes it possible to glean some insights into what value it ascribed to its business and how it has allocated that value to the various claims and interests. Continue reading

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Growth vs. Value: The Story of the Market

There are many ways to slice and dice the market to gain insights into its recent performance, but perhaps the simplest and sometimes the most effective way is to look at growth vs. value. Continue reading

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Market Update–April 30, 2017

The major equity averages closed out the month of April with respectable gains ranging from 1.1%-1.4%, with the exception of the Nasdaq Composite, which rallied 2.9%. Year-to-date, the major indexes are up 6.0%-6.5%, which translates into an annualized gain of 19%. If sustained, that would be the strongest performance since 2013. Continue reading

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PSEG Dances to Stay Fit

Public Service Enterprise Group (PSEG) is a public utility holding company whose principal direct operating subsidiaries include Public Service Electric & Gas (PSE&G), which serves 2.2 million electric customers and 1.8 million gas customers along a northeast to southwest swath of the state of New Jersey. PSEG Power LLC (Power) is merchant power producer and wholesale marketer of electricity and natural gas. Continue reading

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An Update on Arch Coal (ARCH)

Arch Coal emerged from bankruptcy on October 5, 2016 and recently filed its 2016 10-K which included its fourth quarter performance (Oct. 2 to Dec. 31) as a reorganized (i.e. successor) company. With its quick emergence from Chapter 11, substantial reduction in debt and strong liquidity position, the company is upbeat about its ability to both weather any further market weakness and seize upon future opportunities. Continue reading

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Market Update: A Temporary Head Fake?

Since my last update (Feb. 26), the stock market has had its ups and downs, reflecting the push and pull of stronger economic data against higher interest rates and the ongoing political wrangling in Washington. Continue reading

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Market Update: Risk-Off Stocks Back in the Lead

The stock market has advanced steadily through most of February. Many market commentators are calling it a melt-up because average daily price moves have been less than 1%. (In fact, the S&P 500 has not moved more than one percent in daily trading since December 7.) This latest rally, which began on February 9, has taken the S&P up 3.2%. Continue reading

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UPS Investor Day: Invest. Grow. Deliver.

UPS held an investor day in New York City on February 22, three weeks after reporting disappointing fourth quarter results.  Its stock fell sharply on the earnings news, giving back all of its Trump rally gains.  So far this year, UPS is down 7.4%, much worse than the gains of 5.7% on the S&P 500 and 4.2% on the Dow Jones Transports, of which it is a member.  Following management’s comprehensive strategy review and outlook, this is a good time to assess the company’s recent performance and consider the investment potential in its stock. Continue reading

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