You're talking about oil rebounding -- a good thing! I'm curious what your thought are about HFC, once a solid player of yours in a previous portfolio. Thanks!
The first consideration is fundamentals, which for HFC on Yahoo Finance are:
Market Cap: 5.7B
Total Cash: 460.39M
Total Debt: 2.23B
and also of note: P/E (trailing) of 41.22 which tells me that based on recent actual earnings, the price of the stock is very expensive, and that the forward PE of 15.39 is less relevant as it is based on estimates of future earnings. The debt is less than 2.85B (50% of market cap), but only barely. The cash is only 460 million, which seems lower than desired for a company of this size. Sean, how much total cash do you like to see as a percentage of total market cap in a company with strong fundamentals?
So based on the points above, I consider HFC to be fundamentally mediocre, and not strong enough for what I like to see...just my thoughts.
HFC is more expensive than I'd like, yes. And I like to see companies have cash of a billion to billions of dollars. Millions sound like a lot but in a capital-intensive business, their cash levels aren't as high as I'd like to see. Good job, jamesA.
Good advice. Thanks much jamesA and Sean.
In our former portfolio, CEO, TOT, BP, etc. would be the stronger oil plays. https://www.themaven.net/seanhyman/technical-analysis/bp-s-stock-bp-is-coiling-up-in-a-symmetrical-triangle-pattern-which-elliotticians-call-an-iPKFn4vOskWbHJqUlQsG7w#comments