madhedgefundtrader's picture

After the dotcom bust of 2000, these bad boys spent nearly a decade in the penalty box. During this time, cash balances doubled, free cash flows soared, outstanding shares shrank, and multiples fell to a tenth of their bubblicious peaks. The 13 month tech rally we saw from the 2009 lows could just be the down payment of a decade long bull market in these stocks. (INTC), (CSCO), (JNPR), (JDSU), (SNDK), (MU), (ORCL), XLK), (QQQQ), (ROM).

Cognitive Dissonance's picture

A popular definition of insanity is doing the same thing and expecting different results. Is the solution as simple as changing our methods or does insanity beget more insanity? This 5 part series is an examination of our collective and individual insanity. Hop aboard the crazy train express and let’s see if there’s a way out.

madhedgefundtrader's picture

Going through the company’s contract with British Petroleum (BP) with a fine tooth comb. RIG is indemnified for any accidents, including spills. A net asset value of $106/ share, which makes its current price of $51 a once in a life time steal. It has a $28 billion order backlog to tap offshore fields in places like the offshore Tupi field in Brazil, outside the reach of federal regulators, which will generate $10 billion of free cash flow over the next three years.

Leo Kolivakis's picture

Beyond Market Turbulence

Time to look past short-term market turbulence and see why fundamentals are improving. It will be volatile, but the market will keep grinding higher. Choose your stocks and sectors carefully, however, the big beta moves are over.

Econophile's picture

Why would BP take on a risky venture like drilling in 5,000' of water without adequate safeguards? I understand that BP may turn out to be incompetent relative to its peers. But they are a public company and as such they are responsible to shareholders and creditors. Why indeed. Here's a hint: their after tax earnings in Q1 were $6.1 billion and the economic damages liability cap was $75 million.