Thursday, May 31, 2012

Example of investment at 32% a year over 9 years time

I wish I could find an opportunity like BP did in 2003 by investing in TNK.  In 2003 BP invested $6,5 billion in TNK in exchange for 50% stake. At that time BP  market capitalization was about $150 billion. Brent oil cost $30 a barrel.

TNK-BP production:
Today BP share of production from TNK BP accounts for 25% of the group production, while CAPEX is only 8%.
Up to 2011 BP  has received $19 billion in dividends from the venture. Or 32% a year, on the original investment, annualized.  BP as group paid 5.1% in 2011 to its shareholders.

Friday, May 25, 2012

Energy Stocks screening

I repeated the analysis conducted early in January 2012 of the main energy companies.  For an energy company there is  two main factors of prime importance:
- Amount of reserves it has (replenishment rate is always an uncertainty)
- Current cost of the reserves, i.e.  who much  the company investors have paid so far per barrel. This will give an indication of potential profit.

Major energy companies reserves vs current production rate. As you can see:
Cost per barrel of reserves - major oil and gas companies:

Thursday, May 17, 2012

May 2012 update ($190,700 +$2000 or +3,0%).

The portfolio changes:
I have managed to accumulate another  $6,600 towards my annual investment goal.
The energy company stock is down nearly 7% after adding the quarter dividends (or $600).
Emerging markets, depending on the equity fund lost from 20 to 14% of their value (or $5,600)
GBP exchange rate to USD is up nearly 4%, so for my savings it is up $3,000.
EUR exchange rate to USD is down 2.4%, so for my savings it is down $1,500.