TheStar.com - Business -
Bank bailout a `sweet deal': Hedge fund managers
November 14, 2008
WASHINGTON–Hedge fund managers, who rank among some of the world's shrewdest deal makers, told Congress the U.S. government's bank capital injection program did not have enough strings attached.
"The current terms are overly generous to recipients," said John Paulson, president of hedge fund Paulson & Co.
He was among five hedge fund managers questioned yesterday by the U.S. House oversight and government reform committee about Treasury Secretary Henry Paulson's management of a $700 billion (U.S.) bailout program to unfreeze credit markets through taxpayer investments in financial firms.
Treasury's Henry Paulson said Wednesday that the government had largely abandoned its plan to buy toxic mortgage assets in favour of making direct investments in financial institutions and shoring up consumer credit markets.
John Paulson said any bank receiving federal funds should halt cash dividends on common stock and restrict cash compensation to executives.
He also said the government should demand a higher dividend payment from participating banks, possibly around 10 per cent instead of the 5 per cent rate now in place.
James Simons, a mathematics professor-turned-investor who now heads Renaissance Technologies, called the bank injections "quite a sweet deal" for firms requesting the funds.
John Paulson, Philip Falcone, Kenneth Griffin, George Soros and Simons were called to testify at the hearing about the role of hedge funds, their tax status and regulation. Each executive earned, on average, more than $1 billion last year.
Soros, the billionaire chair of Soros Fund Management, said the Treasury department's execution of the program "is not adequate or acceptable." Soros said the government should have made the cost of capital more expensive, giving participating banks an incentive "to put it to good use to get a good return by actually lending," he said.
The U.S. has so far dedicated $250 billion for bank capital injections under the Troubled Asset Relief Program.
Reuters News Agency
Friday, November 14, 2008
Bank bailout a `sweet deal': Hedge fund managers
Thursday, November 13, 2008
The Death of Buy and Hold
Monday, 10 Nov 2008
The Death of Buy and Hold
Posted By:Lee Brodie
Topics:Stock Market Stock Picks
Companies:Potash Corporation of Saskatchewan Inc. Cisco Systems Inc
The five stages of death are denial, anger, bargaining, depression and finally, acceptance. We bring it up, because right now, Wall Street is really struggling with that last one, acceptance.
We’re talking about the death of that time honored investment strategy, buy-and-hold. Investors just can't let go, and they need to.
Thanks to black October, the S&P 500 has now lost a fifth of its value over the last 10 years. According to Jeff Macke, "2008 is the year that will go down in history as the year that long term investment died as a thesis."
And that means it’s time to move on.
But just because buy-and-hold is pretty much dead and buried, that doesn't mean you can't make money anymore.
Just like the widow who gets a second chance at happiness, financial planners are rediscovering an old love. It’s called diversification. And it could make investors very happy for a long time to come.
All the traders think that you shouldn't go into a stock before knowing when you'll get out of it. Maybe you sell if it goes up 10% or maybe you wait for it to double, but you should always know when to take some off the table."It’s very important to take profits in trades," adds Tim Seymour. "You can’t be in a market like this and asleep at the switch."
"It’s very important to take profits in trades," adds Tim Seymour. "You can’t be in a market like this and asleep at the switch."
"Buying and holding isn’t going to make you money anytime soon," says Jeff Macke. "Whether you’re looking at Cisco
[CSCO 17.26 0.71 (+4.29%) ]
or Potash [POT 74.19 4.54 (+6.52%) ] don’t just hold on hoping to see new highs."
If you do Macke thinks you'll be holding on for quite a long time.
" although he does it with put options.What the bottom line? Don't go into a stock without knowing when to take profits.
Wellington Trader Kills Oil:tsx Rally Of Great News- Dumps
Oilexco Awarded Multiple New Licenses in UK North Sea
Oilexco Awarded Multiple New Licenses in UK North Sea
07:19 EST Thursday, November 13, 2008
CALGARY, ALBERTA--(Marketwire - Nov. 13, 2008) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL)(LSE:OIL) is pleased to announce that it has been awarded 8 new licenses in the 25th UK Offshore Licensing Round by the Department of Energy and Climate Change. Five of the blocks were awarded to Oilexco 100%, and for the remaining three blocks the Company was awarded 50% interests.
Arthur Millholland, President and CEO commented, "This particular licensing round was considered by many in the industry to have the most desirable properties available in the last number of years. We are extremely pleased that we were able to obtain so many of the Licences we bid on, and our reputation as being the most active driller in the UK since 2004 no doubt assisted our efforts."
The blocks awarded to Oilexco have a number of qualities consistent with the Company's overall strategy including ones containing previous oil discoveries, close proximity to existing Company properties (Bugle and Kildare for example), and availability of 3D seismic. The specific blocks are listed in the table below:
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Block Equity Interest
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14/30b 50%
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15/23e 50%
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29/1c 50%
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15/26e 100%
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15/30b 100%
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21/24b 100%
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23/26c 100%
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29/7b 100%
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About the Company
Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".
Oilexco Provides Financing Update
15:05 EST Wednesday, November 12, 2008
CALGARY, ALBERTA--(Marketwire - Nov. 12, 2008) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL) (LSE:OIL) is pleased to advise that Oilexco North Sea Limited has been able to negotiate an extension of Pounds Sterling 70 million of its Pounds Sterling 100 million Pre-Development Facility from the current repayment date of January 31, 2009 to November 30, 2009. This facility, provided by The Royal Bank of Scotland, is subject to certain conditions, including the repayment of at least the balance of Pounds Sterling 30 million of the facility on or before January 31, 2009.
Arthur Millholland, President and CEO stated, "We are pleased to be able to announce this extension with the Royal Bank of Scotland as we continue our financing activity in this very difficult market, demonstrating their continued support for the Company. Oilexco will provide a further update on good progress being made on other fronts in due course, and we continue to drive forward our operational programme alongside this process."
About the Company
Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".
Plus
NP says Oilexco able to finance production internally
2008-11-06 08:27 ET - In the News
The National Post reports in its Wednesday, Nov. 5, edition that Marquest Asset Management founding partners Gerry Brockelsby and Andrew Cook see opportunity in Oilexco. The Post's Sonita Horvitch writes in the Buy & Sell column that Oilexco stock finished Tuesday on the TSX Venture Exchange up 46 cents at $5.66.
The stock has a one-year range of $3.25 to $19.50. This Calgary-based company explores for and produces oil and gas primarily in the North Sea of the United Kingdom. This company, says Mr. Brockelsby, is able to finance its existing production internally, but will need external financing to grow its production levels. Investor concerns about the financing risk attached to its production growth have taken the stock down sharply, he says, and have not taken into account the fact that Oilexco is able to fully finance its existing production internally.
The result, he says, is that the stock now trades at 2.5 times cash flow per share estimates for 2009 based on an oil price of $65 (U.S.) per barrel. Mr. Brockelsby said Oilexco was an excellent growth stock in the Buy & Sell column on July 30. It was then trading at $15.67.
