SBM Offshore (T-sell): cont
For clarity Riccardo remains a seller of SBM, as he does Statoil and the SXEP generally. Fundamentally, we are in broad agreement. With regard to SBM Offshore, it has been a serial underperformer and...
View ArticleOil service: another warning shot
Last week Weatherford (WFT) fell 9% to the lowest level since 2008, SBM Offshore followed and fell to the same crisis level. SBM highlighted slowing capex decisions but the market attributed these...
View ArticleSBM Offshore: cover short
Riccardo is covering his short in SBM for a 30% return. Well done Riccardo.
View ArticleOil / Oil Service: Sell TGS
We took profits in PGS last week and our traders are now suggesting you sell TGS. You could argue most stock related news flow is stock-specific. Combined however, and a question is certainly being...
View ArticleMitcham Industries: negative for CGG Veritas
Small-cap US stock, -22% after hours (market cap post move $140mn) on a bigger than expected Q3 loss. Mitcham cites the following reasons: lower leasing activity in certain areas, especially land-based...
View ArticleOil, sell anything beginning with an S: Statoil, Shell, Seadrill, Saipem &...
There are downgrades coming for Oil stocks, least those with little production/reserve growth. Statoil stands out, as does Shell. We are fighting the income brigade with Total, but longer term this...
View ArticlePGS: time to look at again, cheap cyclical with good end markets
We stepped away from our buy call in mid November last year, as we were worried about the direction the oil was heading and could the newsflow in the oil services/E&C space was deteriorating. PGS...
View ArticleOil/oil capex: a quick reminder
We remain sellers ex restructurers (BP) and pockets of capex, namely deep-off-shore, Technip and Subsea 7. The broad oil-service sector is getting hammered (below).
View ArticleSubsea7 and Brazil: learning’s post the call. Continue to avoid E&C
In summary, the logistics have worsened over the lifetime of the project (it has been hard getting equipment into the country and through customs on time) and have been working in winter (and the...
View ArticleAnother E&C warning: sell Foster Wheeler
Subsea7 shocked the market late last night with a warning, one project in Brazil equivalent to 5% of backlog is experiencing overruns (essentially worsening logistics capacity in Brazil since the...
View ArticleTGS: a warning. “Too early to cover shorts just yet”
As we discussed on Friday, it is too early to cover shorts in Oil-service. Six weeks after its Capital Markets Day (23 May), where FY13 guidance was reiterated, TGS warns on Q2 and FY13. This is how...
View ArticleOil prices: downside limited?
We highlighted the recent fall in US Crude oil Rail-shipments as something to keep an eye on. Yesterday Bernstein picked up on a similar idea highlighting a decline in production growth. In fact the...
View ArticleOil E&P: continue to avoid (ex BP/FP)
We continue to avoid this sector until the inevitable downgrades come through, or stocks get cheaper, whatever comes first. As discussed, the street is now 10% above of the forward curve for 2013,...
View ArticleCGGVeritas: BroadSeis margins up, positive for PGS
CGGVeritas reported numbers this morning. Despite missing on the net level there are some positive points to be taken. The company notes demand for high-end processing is increasing, supported by...
View ArticleSBM Offshore (T-sell)
Well-done Riccardo, having been a seller of this stock for many weeks. For clarity, he remains a seller of Statoil and is underweight the SXEP. Fundamentally, we are in broad agreement. With regard to...
View ArticleSBM Offshore (T-sell): cont
For clarity Riccardo remains a seller of SBM, as he does Statoil and the SXEP generally. Fundamentally, we are in broad agreement. With regard to SBM Offshore, it has been a serial underperformer and...
View ArticleOil service: another warning shot
Last week Weatherford (WFT) fell 9% to the lowest level since 2008, SBM Offshore followed and fell to the same crisis level. SBM highlighted slowing capex decisions but the market attributed these...
View ArticleTGS Nopec warns. Why does it matter?
TGS is a multi-client pure-play, meaning it shoots seismic data which is then put up for sale at a later date to multiple clients on a non-exclusive basis (as opposed to contract seismic which is...
View ArticleRemain seller of Seismic
Riccardo has warned on Seismic names for a while. Just yesterday he reminded us of his sell on CGG and we added PGS to our note. He has been a seller of TGS for some time, and reiterated his view...
View ArticlePGS: warning was expected
TGS had basically told you to expect a warning from PGS two weeks ago, which is why it’s traded as it has today. That said, we would remain a seller on further strength. Q3 net income of $74mn was 7%...
View Article
More Pages to Explore .....