Summary of July 2015

Summary, July, 2015

The hurdle of being accepted to the Business Administration course has now been passed and I have even ordered the books that are needed for the coming semester. Hopefully I will find this of more interest than what I found the macro economics. Fui! Future will tell and very soon since time is flying!

I am now on vacation and as each year the possibility for me to write more articles during the vacation depends on if my neighbour still have not learned to block his WiFi. I will keep my fingers crossed!

DB report Q2 2015

DB, Q2, 2015, front page

My last article concerning DB was called two crooks got sacked and this happened during the running Q2 so any expectations for direct significant improvements we should forget. My biggest hope is that the new CEO is honest because from honesty a new future can be built. My direct thought when I saw the report was that... oh, my gosh... this is the biggest bank in Germany and for the running half year they hardly even manage to earn as much as one of the Swedish banks in a quarter. Embarrassing! Share price was up on the day of the release so at least analysts were happy.

German inside trading: July 2015

Inside trading, Germany, July, 2015

The classical monthly report on the the German managers doings and what nots during the month of July is finally here! My direct guess is that vacation has hit Germany because the activity have decreased to a more pleasant level. The biggest worries during July was not Greece but it has been China and every company with exposure to China have seen their share price decrease. So if you have BMW as an example... did the managers sell off their shares during this rumble?

BP report Q2 2015

BP, Q2, 2015, front page

BP arrived a couple of days ago with their Q2 report and it was no fun to read it as it almost never has been since I decided to step in as a shareholder. There is no way around it but to say that it was a mistake to step in to BP back then when the entire horrible accident and litigations were still in the cradle. Now we know how large the costs became and BP have divested plenty of assets to be able to pay for this fault which means that BP is definitely no longer the company that it once were. Just as a reminder to myself for the future. If a company looks cheap when litigations are over then that is the moment to consider to buy them and not any moment before then. In this case I bought BP three years and three months to early and looking at BP today... would I then buy it? And if not, then why am I not selling it? Especially now when the oil price is so low and with little chance of short-term improvements... difficult, difficult.

Is the first million the hardest?

Legacy, leaving, behind, children

I got absolutely no clue at all because I am far from it and my set plan also does not concern reaching one million euro in stocks. My original plan is 750,000 € but I have come to realise that I need even less than that.

It is however interesting that so many says that the first million is the hardest to make. Where does it come from and how does that apply to me?

BASF report Q2 2015

BASF, Q2, 2015, front page

BASF arrived with their Q2 2015 report and the market was very unhappy with it this time and the share price even dropped by well over -3%. What I find interesting here is that in the last report I was seriously annoyed due to their party costs and this report looks to me like business as usual so I wonder why the analysts expected so much more from BASF than what they got.

Kernel operating report Q4 2015

Kernel, Q4, 2015, operating report, front page

The black soil of Ukraine still manages to give large harvests despite of wars, debts and inflation. To buy a Ukrainian agricultural and logistics company in the middle of a war was, in a way, an experiment to see if the investor fears were justified. I know that the only way for me to follow a company properly is to step in as a shareholder otherwise it would have been more clever to not do so and only to kep the data from an imaginary investment made. 

Analysis of Ensco

Ensco, a British oil and gas offshore service company

Company: Ensco


Business: A British oil and gas service company. Their services offered is offshore drilling for the petroleum industry and are the second largest in the world. They have a fleet of: 9 drillships including 1 under construction, 11 dynamically-positioned semisubmersibles, 3 moored semisubmersibles, 40 premium jackups including 3 under construction, 2 deepwater and 3 shallow-water managed units. They have around 7 rigs for sale, 13 are cold stacked (to decrease maintenance costs) and 8 are available without customer.

Active: On six continents!

P/E: -1.1 (also P/E5 becomes negative)

Comment: The dividend might look good but they have cut the quarter payments from 0.75 USD to 0.15 USD which gives a yield around 3.2% if they continue like that. In 2014 they depreciated their assets by -4.2 billion USD and they took a cost of -1.2 billion USD for non continued operations. They have almost no goodwill left in their books now. Without these two they would have had an acceptable profit in 2014 and Q1 2015 looked ok so even with so much of the fleet out of business they still seem to make a profit. They have the right to buy back shares for 2 billion USD and they can issue up to 450 million shares right now 271 millions are issued. Looks as if the managers can fool around a little as they please.