Re>>>>> Tough day for many oil/oil-related stocks. I don't know if it's fear of Iran opening its oil spigots, seasonal, or something else. I add to my positions though:
More: SDCJF, COSWF, PBA, ATW.
Opening a tracking position in EC.
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More JMHLY as it continues to fall
Anyone looked at Buffett's purchase on ExxonMobil ("XOM")? It has more NG focus than Chevron but XOM's returns per bbl (cited from public sources) are lower than CVX. The size of purchase suggests that its WEB and not Ted or Todd. Im just trying to understand the angle. Its just lukewarm, not unloved. And his last buy on Conoco Philips was ....erm.
As on JMH, I would suggest hold back the buying first. Reason being JC&C's biggest part, Astra is involved in intra-indonesia business of selling autos + earning the difference between interest rates and lending rates. A fall in Rupiah is a double whammy for them since they arent really an exporter and their base borrowing cost will rise if theres inflationary pressures from the currency dip (i.e margins will narrow). This is amidst the high NPLs, c.20+% for their white goods financing business.
Not to mention, when this happens, people's first reaction would be to stop buying cars when suddenly cars are 15-20% more expensive just from currency depreciation alone. This is made worse if companies dont hedge their US denominated debt and many of them, including Astra has their costs in USD (they import or have selling rights for many foreign auto firms such as Toyota and Nissan etc).
Worth a track...
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