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Trading Ideas

British American Tobacco to Raise $2.4 Billion From Debt Offering

March 31, 2020 admin Comments Off on British American Tobacco to Raise $2.4 Billion From Debt Offering

British American Tobacco (BTI) said on Tuesday it priced a debt offering of $2.4 billion notes and intends to use the proceeds for general business purposes, including paying off upcoming maturities.The maker of Lucky Strike and Dunhill cigarettes said it expected the issuance to close on April 2.“COVID-19 is developing rapidly. We are fortunate that our business is resilient and is supported by a geographically diversified supply chain from both a manufacturing and distribution standpoint,” British American Tobacco Chief Executive Officer Jack Bowles said on March 18. “As yet, we have seen no material impact.”With a Buy rating from …read more […]

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Why Stock Buybacks Will Drop in 2020 with History as a Guide

March 31, 2020 admin Comments Off on Why Stock Buybacks Will Drop in 2020 with History as a Guide

The longest bull market in U.S. history has come to an end. Stock buybacks have helped fuel the stock market but with this recession, companies are tightening their purse strings. Airlines, banks and other companies have already announced cutting back. President Trump has also put downward pressure on repurchases…

I am fine with restricting buybacks. In fact, I would demand that there be no stock buybacks. I don’t want them taking hundreds of millions of dollars and buying back their stock.

Buybacks get a lot of negative press but they aren’t inherently bad. Like all tools, it depends on how you use …read more […]

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Paying $4.79 a Gallon, California Didn’t Get the Cheap Gas Memo

March 31, 2020 admin Comments Off on Paying $4.79 a Gallon, California Didn’t Get the Cheap Gas Memo

(Bloomberg) — At least there’s this: The average price for a gallon of gasoline in the U.S. has fallen below $2 for the first time in four years.That’s average — which California is not. As crude oil prices have tanked, depressed by the coronavirus pandemic and the market-share war between Saudi Arabia and Russia, at least a dozen service stations in the Golden State were charging more than $4 as of Monday, according to the tracker GasBuddy. One unnamed location in Santa Clara, near the heart of Silicon Valley, was demanding the most that GasBuddy’s research found in the state: …read more […]

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Shell Sees Oil Sales Volume, Margins Stable in First Quarter

March 31, 2020 admin Comments Off on Shell Sees Oil Sales Volume, Margins Stable in First Quarter

(Bloomberg) — Royal Dutch Shell Plc said it doesn’t expect the coronavirus to have a significant effect on overall demand for its oil products in the first quarter.While the company warned that the pandemic was creating major uncertainties around oil prices and boosting volatility, it experienced a “relatively minor” impact in the first two months of the year and expects sales volumes and margins for the quarter to be relatively unscathed.“Marketing margins in the first quarter are expected to remain strong, as the impact on demand from COVID-19 is not expected to be significant at the Shell group level,” the …read more […]