Sweet 16 Update - March 30
Posted: Thu Mar 29, 2018 6:07 pm
The stock market will be closed on Good Friday, so I have updated the Sweet 16 main spreadsheet as of the last trading day of the first quarter, March 29.
RSPP will merge into CXO within six months, so there will be an opening in the portfolio. I have several companies on my Watch List that we will profile in April.
So, which one is the next takeover target? That is the multi-million dollar question. IMO at least 8 of the Sweet 16 are "Screaming Takeover Targets"; trading at a deep discount to their Net Asset Value. This is the point in an oil price cycle when M&A activity really picks up, so the CXO/RSPP merger is not going to be the last major deal.
My valuations and First Call's price targets are shown on the Sweet 16 spreadsheet.
BTW my valuation of RSPP was $52/share before the deal was announced. CXO got a good deal at $49/share.
Looking over the list, NFX looks "tasty" for any large-cap that wants to get into STACK. They could acquire NFX and then sell off all the other assets, getting STACK for a fraction of the leasehold value in that premier oil play. When I was at Hess Corp., this is exactly the type of opportunity that we were looking for.
What is your guess and why? This is a good topic to kick around on a long holiday weekend.
RSPP will merge into CXO within six months, so there will be an opening in the portfolio. I have several companies on my Watch List that we will profile in April.
So, which one is the next takeover target? That is the multi-million dollar question. IMO at least 8 of the Sweet 16 are "Screaming Takeover Targets"; trading at a deep discount to their Net Asset Value. This is the point in an oil price cycle when M&A activity really picks up, so the CXO/RSPP merger is not going to be the last major deal.
My valuations and First Call's price targets are shown on the Sweet 16 spreadsheet.
BTW my valuation of RSPP was $52/share before the deal was announced. CXO got a good deal at $49/share.
Looking over the list, NFX looks "tasty" for any large-cap that wants to get into STACK. They could acquire NFX and then sell off all the other assets, getting STACK for a fraction of the leasehold value in that premier oil play. When I was at Hess Corp., this is exactly the type of opportunity that we were looking for.
What is your guess and why? This is a good topic to kick around on a long holiday weekend.