Basic Materials: Too Hot Too Fast

Ockham Research Staff @ January 12, 2009 # No Comment Yet


There is a stark contrast in the performance of the Basic Materials sector over the last 6 months versus the last 3 months. We think that the recent rally in the sector makes this not an ideal place to put your investment, unless there is a significant pull back.

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Grey Wolf (GW) is Sent to the Doghouse

Ockham Research Staff @ December 23, 2008 # No Comment Yet


This is a sad development for Grey Wolf as it breathes its last breath as an independent company in the coming days. It had a great opportunity on a shareholder value basis to make it through this painful downturn or to seek a better offer. At this point, however, it appears that it is all over.

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OPEC Pledges Another Production Cut

Ockham Research Staff @ December 17, 2008 # One Comment


OPEC announced a major cut in production today, at 2.2 million barrels per day it is that largest production cut in history. However, domestic oil and natural gas producers are cutting their CapEx budgets as well, all in an effort to increase the price of oil. There will likely be a major spike in oil once economic activity begins to grow again.

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Fluor-ishing in a Recession

Ockham Research Staff @ December 3, 2008 # No Comment Yet


Fluor Corp. has thus far successfully navigated the global economic slowdown. In this post, we outline the reasons why we think that this stock could stand to benefit greatly from trends we believe will materialize; including the proposed infrastructure spending from the Obama Administation.

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Alternative Energy Brings Many Alternatives

Ockham Research Staff @ November 5, 2008 # No Comment Yet


In all likelihood, we will see increased attention paid to alternative energy and the companies that make those energies. We hope that these programs are run wisely because often when a government becomes the sponsor of an economic initiative the consequences can be troublesome.

More on this topic (What's this?) Read more on Renewable Energy at Wikinvest

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Chesapeake Energy Will Not Stay this Cheap

Ockham Research Staff @ October 31, 2008 # One Comment


Chesapeake Energy’s (CHK) stock price has been hammered over the past few months due to the bursting of the energy and commodities bubble. Also, some investors have voiced concern over CHK’s high debt level. However, we see this sell-off as a great buying opportunity for patient investors. CHK has hedged itself to offer some protection against the recent slide in natural gas prices and has assets significant enough (including rights in the Marcellus Shale field in Appalachia) to give it a book value in excess of its current market value. To Ockham, these considerations make CHK a stock worthy of the attention of long-term investors.

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Well, We Told You

Ockham Research Staff @ October 20, 2008 # No Comment Yet


We revisit last week’s call to be bullish on oil stocks because crude was due for a rebound. So far, so good.

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Exelon Could Grab NRG for a Song

Ockham Research Staff @ October 20, 2008 # No Comment Yet


Excelon is offering $6.2 billion in a stock deal to buy NRG Energy, the second biggest energy producer in Texas. The companies combined would very likely aggressively pursue nuclear energy together as both company’s have expressed strong interest in that field. It seems like a good deal from our analysis, will the NRG shareholder’s agree?

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Oil Stocks are Cheap, But Will It Last?

Ockham Research Staff @ October 16, 2008 # 3 Comments


While everyone has been talking about the stock market’s recent slide, oil prices have actually dropped further and faster. In this article, we attempt to simply and rationally understand where the price of oil is heading in this highly reactionary market environment.

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Applied Materials—Leading By Example

Ockham Research Staff @ October 8, 2008 # 3 Comments


Applied Materials is currently trading near its 10 year low and we think that the fundamentals remain strong. There is huge potential for growth in alternative energies, just ask Applied Materials themselves. They just completed a large solar power project that will power their California headquarters.

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Solar Update
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