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Philip Davis

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  • Thank GDP It's Friday - Fundamentals Finally Matter [View article]
    Maybe a little late now but I Stocktalked the Instablog post this morning as we thought it was very important to warn people we were shorting the open. If you are interested, make sure you follow me and check off those items on SA as we do put up the occasional major Alerts when the market moves big.

    Post is here: seekingalpha.com/insta...

    I also Twittered it so you can follow us there too.

    stocktwits.com/philsto...
    Jan 28 10:39 AM | 3 Likes Like |Link to Comment
  • GS and MS Dominion Buyout: Liar's Poker [View article]
    You are both correct! But only if you buy into the arguement that nat gas is worth $5/Mcf as the rate of extraction and increasing costs over time push break even back much further than you think.

    It's kind of the point I was making, everything seems like a bargain if you triple the price of everything else but what if gas is only worth $3/mcf and oil is only worth $40 a barrel? Will they extract and deliver it out of the goodness of their hearts?

    The fact is this is a segment that is dragging Dominion's earnings DOWN and they are trying to get while the getting is good. The last thing GS/MS want is for KKR (the other bidder) to purchase an E&P asset for a discount to the "market" pricing because it automatically calls into question their current asset base as well as possibly putting a crimp into deals they may have in progress.

    Saul, I will certainly credit you with being correct as to the amazing resilaincy of XOM, it does seem bulletproof - so I took the '08 puts!

    - Phil
    Jan 24 07:37 PM | 1 Like Like |Link to Comment
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