Holidays Coming

Well, with Wells Fargo moving to repay TARP funds that chapter in the economic history will be closed. Citigroup succeeded in repaying yesterday.

I expected that move to repay TARP funds and serial stock offerings would bring some strain to the bank share prices (and even broad market), but nothing jet on that front. Yes, the financials underperformed in recent month(s), but I expected something more significant.

Same with REIT’s, the sector outperformed broad market yesterday, my short position was closed on a stop loss order. No luck for me in last few days. In general, nothing is moving in recent days (one thing I correctly foretasted), maybe it would be wise to close this year trading early and enjoy the holidays.

Yesterday Exxon Mobil announced the it will acquire XTO Energy. Bloomberg story: Marching Band, Quail Hunt Helped Exxon’s Tillerson to XTO Deal. Exxon Mobil is one of the handful companies Belisarius thinks highly of (alldough he doesn’t own any Exxon Mobil shares at the moment). One of the best run companies out there, with clear strategy, immaculate track record, discipline in buying assets and a shareholder value always in first place. My takes from the deal are (excluding obvious ones like expanding energy asset base at favorable market timing): XOM sees scarce opportunities in the conventional energy assets arena (with having ROI in mind) within the politically stable part of the world, that’s why (providing a equity weakness) a deep sea drillers and independent upstream companies would be among my most favored investments.

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This entry was posted on Tuesday, December 15th, 2009 at 6:28 am and is filed under Commodities, Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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