Tag: scripsio

For the oilfield services industry, it’s no longer about merely navigating a downturn. It’s now about survival.

The service companies that handed out discounts in the downturn are barely holding on. Schlumberger Ltd. and Halliburton Co., the two biggest, have each fallen by more than 65% since crude started tumbling, and Weatherford International Plc on Monday filed for bankruptcy. Contrast that with the oil producers, collectively down less than 50%.

The gear glut is taking a toll as service companies are jockeying to defend their share of an increasingly lean market. The prices charged by service companies are at their lowest levels since September 2016, with more companies dropping prices than raising them, according to data from the Federal Reserve Bank of Dallas. The servicer price index hasn’t risen for at least a year, the bank’s quarterly surveys show.

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As shale drilling technology and efficiency gains continue to improve each year, the break even point continues to go down for the shale productions. The latest break even point figure is near $50 now. But just because the break even point has declined, doesn’t necessary mean more profits. Although oil prices are higher relative to previous years.

The oil sector relative to the equity markets continue to decline, which means the break even point must continue to come down in order for companies to have a chance of survival.

And since the oil services company exist because of the oil production companies, it only makes sense that they are fighting for their lives as well.

VanEck Vectors^® Oil Services ETF (OIH^®) seeks to track the overall performance of U.S.-listed companies involved in oil services to the upstream oil sector, which include oil equipment, oil services, or oil drilling. The chart suggest OIH is headed lower over time.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Public Storage (NYSE:PSA) is the undisputed leader in the self-storage industry, and the stock had been quite a market laggard until recently. However, tides have turned, and Public Storage is now up 18% in 2019. Is it still a good buy, or has it become too expensive?

Public Storage has previously said that it can break even with about 30% occupancy in its properties, and its occupancy rate is currently 92.5%. That’s a big margin of safety.

Public Storage also has a rock-solid balance sheet. Most real estate investment trusts use a considerable level of debt to fund their operations — debt in the 30%-40% of total capitalization range is common. Well, Public Storage has just about 3.2% (not a typo) of its capitalization in the form of debt.

Over the years, Public Storage has built up a great dividend track record. Since 2002, the company’s dividend has grown at a 9.8% annualized rate, and the current 3.4% yield is well covered by Public Storage’s earnings.

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Some of the risks include if long-term interest rates are rising, an overabundance of self-storage facilities and the sector being cyclical because of their month to month leases.  But overall, it appears the pros far vastly outweigh the cons. However, the chart suggests the upside opportunity is limited due to the weekly supply at $254.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Apple shares raced into July.

The stock surged 2% on Monday, adding to a nearly 30% advance for the year, after a pause on additional tariffs between the U.S. and China reignited hopes of trade progress.

Apple would need to reach at least $210 to break out above the upper band of its symmetrical triangle pattern. That marks a roughly 4% rally from its current level at less than $202.

“However, the more important level is going to be the early May highs. That’s up right around $212. You break above that, not only will you get a break of the triangle pattern, but you’ll have a nice higher low, higher high sequence which should give this stock another leg higher,” said Maley.

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But the real level to watch is the weekly supply at $222, because of the previous sellers at $215, the weekly supply at $222 is just below the monthly supply and the unfilled sell orders waiting near $222. 

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Tesla Inc beat expectations for deliveries of its Model 3 sedan in the second quarter, a performance that could ease concerns about demand for the new electric sedan.

Musk is struggling to convince investors that demand remains high for Tesla cars and that it can be delivered efficiently and swiftly to customers around the world.

Tesla has been trying to make up for a difficult first quarter, in which deliveries plunged and the company lost $702 million.

The company said earlier this year it would turn a profit in the second half of 2019, a delay from earlier projections. The company has said it will deliver 360,000 to 400,000 vehicles in 2019, a goal many analysts predict will be difficult to meet.

Overall, total production rose 13% to 87,048 vehicles compared to the first quarter. The company churned out 72,531 Model 3s in the second quarter, up from a total of 62,950 Model 3s in the preceding quarter.

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Tesla has many doubters on Wall Street who would love to see the company fail. This is no more apparent then short interest around $10 billion or about 30 million shares shorted (25% of float) making it one of the most shorted stocks in the U.S. market and once upon a time, the most shorted stock in U.S. Market history.

However, Elon has one this battle as I anticipate a spike in price at the open as some short sellers cover their position and will have to buy the stock back.

The chart suggests price will higher to the short term target at $260.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Nvidia (NVDA – Get Report) has been going through a volatile time over the last nine months. Can the company find some better rhythm in the second half and help give its stock a boost?

Long-time investors are hopeful that it can. Monday’s price action helps, with news of a de-escalating trade war giving investors hope that a deal can be reached in the future.

These gains come on the first trading day of the second half of 2019, giving the stock a good start to the third quarter. Nvidia stock is up about 3% to $167 on the day, although it was up more than 5% at one point in morning trade.

While analysts expect a year-over-year decline for both earnings and revenue this year, investors will be focusing to see whether growth is on track to return next year. That will have a big impact on whether the stock can get back above and stay above $200, or if the lows may be probed once more.

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Backing October, price broke the upward trend line.

Major weekly zones are far from price currently.

Thus, the currently level in play now are the $190 and the $130 levels.

However, the fact that price couldn’t make a lower low and the fact that the weekly supply is above $200, strengthen the case that price has a good possibility of getting back to $200 by year end.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.