Mark Grammer
Repsol YPF , SA
REPYY-5
COMMENT
Mar 23, 2016
It is hard for him to get really excited about any of the integrated oil companies, although he does own Total (TOT-N) more because of its strong downstream.
(A Top PIck Sept 13/05. Down 2.25%.) Actually got up tp $35. Thinks that this refinery story is starting to play out. The next couple of years will see a real tightening in global refining and this is the real upside for them. Can see $40 in a couple of years.
At large part of their business is refining. You can have as much oil as you want, but you have to refine it into gasoline. This is a bottleneck. It is difficult to build new refineries because of environmental issues and costs.
(A Top Pick Jan 9/06. Down 9%.) Sold his holdings when they came out with a reduction of 25% rather than 10% in their reserves. Also didn't like the areas where they were going to try to increase their reserves.
Very cheap assets. Took a reserve write-down and they were hit in the South American write off. He was hoping for a positive outcome but couldn't get the answer is he was looking for so they sold their holdings.
(A Top Pick Aug 12/05. Down 3.6%.) Previous quarter's numbers showed they had missed estimates but also, their reserves are in unsettled countries so he sold his holdings.
Decreased since it was his top pick. Doesn't own it anymore. It's a good company, great refining capacity. Reserves where coming down which is why he sold it. He may re-enter in the low $20s.
Your Watchlist
Add stocks to watchlist to monitor them daily and get important alerts.
It is hard for him to get really excited about any of the integrated oil companies, although he does own Total (TOT-N) more because of its strong downstream.