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  • ThePitBoss

    Riding with other oil companies Phillips 66

    $PSX 95.50 +1.71, +1.8% fills the gap from Friday’s loss


    Schlumberger the best performer in a strong energy sector today
    (SLB 43.50, +2.38, +5.8%) rallying back above its 50-day moving average (41.11)


    Exxon Mobil (XOM 94.27, +2.41, +2.6%): rising to its best level since July 2016. Follows last week deal where ExxonMobil will receive $750 million in cash, along with additional payments contingent on future natural gas prices.


    I always think of the Chariots of Fire with Vangelis – bulls running …


    While on Barron’s on IPO’s they say have the cash position to ride out the tough stretch and potential turnaround plays.

    Allbirds $BIRD
    Poshmark $POSH
    Rivian Automotive $RIVN
    Robinhood Markets $HOOD
    Warby Parker $WRBY


    Chevron (CVX 172.23, +4.41, +2.6%): rising toward its record high from last week (175.65). Stock was also mentioned positively in Barron’s.


    Other Energy stocks in the move higher:

    Schlumberger (SLB 43.50, +2.38, +5.8%): best performer in the sector, rallying back above its 50-day moving average (41.11).
    Halliburton (HAL 38.12, +1.42, +3.8%): rising back above its 50-day moving average (37.31) to last week’s high.
    Baker Hughes (BKR 35.76, +1.21, +3.5%): rising back above its 50-day moving average (34.71) to a one-month high.
    ConocoPhillips (COP 108.22, +3.20, +3.0%): rising to a fresh record high.
    Exxon Mobil (XOM 94.27, +2.41, +2.6%): rising to its best level since July 2016.
    Marathon Oil (MRO 27.82, +0.56, +2.1%): rising for the third consecutive day.
    Williams Companies (WMB 36.13, +0.75, +2.1%): revisiting last week’s high.
    Marathon Petroleum (MPC 98.60, +2.04, +2.1%): rising to a fresh record high.
    Phillips 66 (PSX 95.50, +1.71, +1.8%): reclaiming Friday’s loss.
    Diamondback Energy (FANG 132.50, +2.22, +1.7%): rising toward its 50-day moving average (134.49).
    Occidental Petroleum (OXY 63.57, +0.31, +0.5%): weakest performer in the sector, hovering in the top half of Friday’s range.


    Energy Sector $XLE strong 83.75 +1.98 (+2.5%) with financials $XLF leading (+3.3%).

    3 largest components lead:

    Exxon Mobil $XOM 94.27, +2.41, +2.6% & ConocoPhillips $COP 108.22, +3.20, +3.0% new 52-week highs.
    Chevron $CVX 172.23, +4.41, +2.6%) rising toward its record high from last week (175.65). Stock was mentioned positively in Barron’s.


    Crude Oil Brings the Bounce…
    July CL_F closed up $2.87 to $109.96
    The low $103.24 giving a $6.72 bounce, breaking a two-day decline
    WTI June contract expires tomorrow.


    G7 draft communique: Will continue to support resilience of supply chain

    from Reuters

    Will continue to support supply chain resiliency through diversification, investment in alternative resources and new technologies, including critical minerals and renewable energies
    Central banks closely monitoring impact of prices pressures on inflation expectations, will continue to appropriately calibrate pace of monetary policy tightening in a date-dependent and clearly communicated manner
    Committed to keeping markets open, enhancing resilience of agricultural and energy markets in line with climate and enviro goals


    European equity close:

    German DAX -1.0%
    FTSE 100 -2.0%
    Stoxx 600 -1.5%
    Italy MIB -0.1%
    Spain IBEX -0.9%

    Recovered some3 off lows


    Bank of Canada’s Senior Deputy Gov. Carolyn Rogers

    Labor market is really a strong indicator right now of excess demand in Canadian economy
    We don’t target components of inflation, would target overall level of inflation
    we need higher rates to moderate demand including demand in the housing market
    housing price growth is unsustainably strong in Canada
    it would not be a bad thing for the economy for the growth in housing prices to moderate a bit
    we do expect that housing price growth will moderate as rates go up


    Bitcoin falls to the lows of the day through $38,000 to the lows of the day, down about 1.2%.

    In the past few months, bitcoin has had a habit of moving ahead of broader risk trades.


    European bourses close:

    Stoxx 600 +0.4%
    DAX +0.6%
    UK FTSE +0.1%
    French CAC +0.6%
    Spain IBEX +1.4%
    Italy MIB +1.5%


    MicroStrategy to Continue Buying Bitcoin Despite Market Tumble, CFO Says

    MicroStrategy Inc. plans to continue investing in bitcoin despite recent declines in the value of the cryptocurrency asset and a call by U.S. securities regulators to revise its disclosure in future filings.

    The Tysons Corner, Va.-based software company is one of a handful of companies with bitcoin holdings, alongside auto maker Tesla Inc. and payment company Square, which recently renamed itself Block Inc.

    “Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin,” Chief Financial Officer Phong Le said.

    The company held $2.41 billion of the cryptocurrency as of Sept. 30, up from $1.05 billion at the end of 2020. MicroStrategy also said it purchased bitcoins for $2.04 billion in cash for the first nine months of 2021, up from $425 million in the prior-year period.

    The company is scheduled to release its fourth quarter earnings on Feb. 1.

    Bitcoin fell to $36,800 late Monday—down nearly half from its record high of $68,990.90 in November—after hitting a seven-month low in the morning. Market volatility is among the top reasons many CFOs are avoiding putting corporate cash into crypto assets. The lack of defined accounting standards has also spooked them.

    MicroStrategy will continue buying bitcoin this year, Mr. Le said, though it is unclear if it would buy more than it did last year; the company has no plans to sell the asset. MicroStrategy is also considering buying bitcoin-backed bonds if the market becomes more liquid, possibly in the next year or two, he said. “We’re constantly looking at other ways to be additive to our shareholders as it relates to bitcoin,” he said.

    MicroStrategy’s own stock has declined 19% since Thursday, closing at $370.45 on Monday. Mr. Le attributed the drop largely to the broader selloff of technology and bitcoin-related stocks.

    In letters made public last week, the Securities and Exchange Commission told MicroStrategy to revise the way it discloses its bitcoin holdings in future filings. The SEC’s corporate-finance division often sends comment letters to public companies to inquire on their disclosures or accounting practices.

    The Morning Ledger provides daily news and insights on corporate finance from the CFO Journal team.

    MicroStrategy has been stripping out bitcoin volatility when using measures not defined under U.S. generally accepted accounting principles, or GAAP.

    “We object to your adjustment for bitcoin impairment charges in your non-GAAP measures,” the regulator wrote in a Dec. 3 letter.

    In an October letter to the SEC, Mr. Le had said the inclusion of such impairment losses, as later sought by the SEC, could distract from investors’ analysis of the company’s operating results. On Dec. 16, however, MicroStrategy told the SEC it would revise its disclosures accordingly.

    “Accounting is black and white, but disclosures tend to be gray,” Mr. Le said on Monday, adding that the SEC’s comments made sense.

    The SEC, meanwhile, is working to clarify the rules for the approximately $2 trillion cryptocurrency market.

    Companies with crypto holdings account for them as indefinite-lived intangible assets—similar to trademarks and website domains—based on nonbinding guidelines from the Association of International Certified Professional Accountants.
    More From CFO Journal

    Under those guidelines, businesses have to review the value of these assets at least once a year. Companies have to write down the value if it drops below the purchase price, depending on the result of their impairment test. But if the value rises, companies need only record a gain when they sell the assets, not while holding them.

    In a September letter to the Financial Accounting Standards Board, MicroStrategy said this approach doesn’t accurately reflect its financial condition and results of operations. Instead, MicroStrategy and others have pushed to apply fair-value accounting rules to digital assets. Under fair-value accounting, companies recognize losses and gains in value immediately and treat the digital assets as financial assets, not as intangibles.

    MicroStrategy has made more than $750 million on its bitcoin investment at the current price, said Brent Thill, a senior analyst at Jefferies Group LLC, a financial-services firm. But some investors are concerned the company isn’t focusing enough on its core business, he said.

    MicroStrategy reported a net loss of $36.1 million for the quarter ended Sept. 30, widening from a loss of $14.2 million in the prior-year period. Revenue, meanwhile, grew 0.5% to $128 million for the quarter from a year earlier.

Viewing 15 posts - 16 through 30 (of 416 total)