Wall Street loves sound bites and handy acronyms. Whether it is ROE, NPV or NAV, there is no shortage of handy terms. For growth-oriented investors, BRIC has been one of the most important acronyms of the past ten years. Encompassing the dynamic economies of Brazil, Russia, India and China, BRIC was a guidepost for many investors and there is no questioning the strong stock performance of this group (particularly China and Brazil). (Historically, international investing has worked out well for investors, but this may no longer be the case.
Things change, though, and it may be time for investors to pay more attention to a new name. A civet may be an odd-looking creature (imagine a cross between a raccoon and a cheetah), but the CIVETS could be the next major destination for international investing.
Meet the CIVETS
CIVETS is an acronym, reportedly coined by Michael Geoghegan at HSBC (NYSE:HBC), for Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. Investors may think of this as a second-generation of emerging economies, as these countries generally have fast-rising (and young) populations, relatively well-established financial infrastructure, internal stability and a pathway towards significant economic growth and potential co-leadership in their economic spheres.
Please click the link for the full text:
http://financialedge.investopedia.com/financial-edge/1010/Forget-BRIC-Its-Time-For-CIVETS.aspx
Please note - I ordinarily also would have mentioned Turkcell (NYSE: TKC) as part of this group, but I own Turkcell in my own accounts, and therefore cannot mention it within Investopedia articles.
Showing posts with label Egypt. Show all posts
Showing posts with label Egypt. Show all posts
Monday, October 18, 2010
Tuesday, July 20, 2010
Well... This One Turned Out To Be True!
Along with earnings, mid-major energy company Apache (NYSE: APA) announced a deal to acquire some of BP's (NYSE: BP) global assets. Apache is acquiring estimated proven reserves of 385M boe (a bit below my 400M - 500M estimate) for a total consideration of $7B - a somewhat better price than I had assumed.
The acquisitions make a lot of sense at first look - Apache is getting all of BP's business in the Permian Basin (W. Texas / New Mexico) and Egypt's Western Desert, plus an upstream natural gas business in western Canada.
To pay for this, Apache will be launching a joint cash/debt offering soon.
Seems like a no-brainer to me for Apache. They have operations in the Permian and Egypt already, so there should (or at least could) be some relatively simple synergies to be had there. Moreover, at well below $20/boe, the price is certainly favorable for Apache. Seeing this price, I can understand why BP did not want to throw in their Alaskan operations - I know BP needs the money (and likely needs to raise more than this $7 billion), but management cannot sell off too many of their assets for that kind of price.
I suspect that part of the reason for the favorable price was the fact that these properties are not producing all that much - 83K/boe per day according to Apache. So, that will add about 13% or so to production near-term, and you have to think that Apache (and its reputation for squeezing out every drop) will be able to boost that, as well as deliver on the unexplored acreage.
All in all, a good (if not great) deal for Apache and a necessary deal for BP. Reminds me of why Apache is always one of my go-to energy stocks.
Here was my original post on the rumored get-together:
http://kratistoinvesting.blogspot.com/2010/07/apache-might-profit-from-bps-troubles.html
The acquisitions make a lot of sense at first look - Apache is getting all of BP's business in the Permian Basin (W. Texas / New Mexico) and Egypt's Western Desert, plus an upstream natural gas business in western Canada.
To pay for this, Apache will be launching a joint cash/debt offering soon.
Seems like a no-brainer to me for Apache. They have operations in the Permian and Egypt already, so there should (or at least could) be some relatively simple synergies to be had there. Moreover, at well below $20/boe, the price is certainly favorable for Apache. Seeing this price, I can understand why BP did not want to throw in their Alaskan operations - I know BP needs the money (and likely needs to raise more than this $7 billion), but management cannot sell off too many of their assets for that kind of price.
I suspect that part of the reason for the favorable price was the fact that these properties are not producing all that much - 83K/boe per day according to Apache. So, that will add about 13% or so to production near-term, and you have to think that Apache (and its reputation for squeezing out every drop) will be able to boost that, as well as deliver on the unexplored acreage.
All in all, a good (if not great) deal for Apache and a necessary deal for BP. Reminds me of why Apache is always one of my go-to energy stocks.
Here was my original post on the rumored get-together:
http://kratistoinvesting.blogspot.com/2010/07/apache-might-profit-from-bps-troubles.html
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