Friday, January 4, 2013

WSJ Links and More; Random Market Comments on EOG, ENB, and UNP; Gold

Market Update

I don't follow GMXR -- a reader alerted me to it. GMXR is up over 1,200 percent today! For a one dollar stock, it's up over $7.00 now. Wow. Not wow. It's a reverse stock split. Never a good sign.  From investorshub.com:
"GMX Resources Inc. (GMXR) has announced a 1-for-13 reverse stock split. As a result of the reverse stock split, each GMXR Common Share will be converted into the right to receive .076923 (New) GMX Resources Inc. Common Shares. The reverse stock split will become effective after the market close on January 3, 2013."
Market

Wow, EOG is up another dollar, hitting another all-time high, I think. [See first comment: I was wrong: probably should have said, "another 52-week high."] This is quite interesting. I opined some time ago that of the Bakken-centric stocks, EOG might be the most interesting for investors because of its exposure to the Eagle Ford. 

In addition, "they" still talk about EOG transitioning from being a natural gas company to an oil company. The company started talking about that -- the transitioning -- over a year ago. I had forgotten they were a natural gas company, thinking of them as an oil-centric company. Wow, they've come a long way in a year, and if they are still transitioning, lots of opportunity for growth. 

The two Bakken companies I enjoy following the most: EOG and Enbridge. I would add BNSF as a third company to follow, but now that it's part of Warren Buffett's menagerie (GEICO-Dairy Queen-Sees-BNSF), it's not as much fun. So, what's a fellow to do? Look at Union Pacific Railroad. Now that's incredible. If you go there, compare UNP, MSFT and AAPL over five years and two years. When Warren Buffett bought BNI, I switched in to UNP for long-term. I will never sell; just keep accumulating and let granddaughters have it some day.

Tea Leaves

I really don't follow gold much any more (probably never did follow gold all that much). But I see it took quite a tumble yesterday; didn't know why; then saw articles today about Fed wanting to end "QE" by the end of this year. Regardless of the reason for gold falling in price, I would have expected oil to have followed. Before the market open, I saw that oil had fallen $1.10 according to the TV crawler, but on Yahoo, now, it's only down about 25 cents. I don't know if Yahoo and CNBC track "the same oil" quotes. Be that as it may, it appears that the price of oil is holding, despite a) fall in gold; b) slow driving season; c) lousy jobs report. For oil investors, that all seems bullish. 

WSJ Links

Section M (mansions): I hardly glance at it. Houses hold no interest for me. Nada.

Section D:
  • Several pages about the upcoming Alabama - Notre Dame game.
  • Art reviews: nothing particularly interesting. I see Dustin Hoffman is 75.
Section C (money and investing): nothing of interest; several stories on bonds.

Section B: now we start to get to the news
Section A: surprisingly, nothing of interest. Not even the op-ed today.

4 comments:

  1. Bruce, in early 2009, EOG briefly hit the mid 140's. This is the high since that time. I also see EOG as an oil company. Their gas assets are being de-emphasized until (or if) nat gas goes higher in price. Nat gas is a fairly small part of their income. The pundits are behind the curve when describing what EOG really is. Enjoy your blog and visit frequently.

    Tarpon

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    Replies
    1. Yes, you are correct; I should have said another 52-week high; ad-libbing in this case. Thank you for correcting this. I will note it in the post. Also, glad to see others see EOG as an oil company now.

      Delete
  2. Regarding the price of oil, Brent crude is down nearly a dollar and WTI up a few cents as I type. I suspect that the expansion of the Seaway pipeline will slowly bring the price of WTI up as the glut in Cushing is slowly alleviated, and that it is now beginning. The WTI/Brent spread had been around 20-22, but is now just over 18.

    Tarpon

    ReplyDelete
    Replies
    1. That's good news. I'm getting ready to post a story about how badly Canada is hurting, something RBN Energy has talked about for quite some time. Now, we're seeing how bad it really is.

      Delete

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