Latest news with #ColeSmead
Yahoo
2 days ago
- Business
- Yahoo
Master this one skill to build long-term wealth
Listen and subscribe to Stocks In Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcast. In this episode of Stocks in Translation, Capital Management CEO and portfolio manager Cole Smead joins Markets and Data Editor Jared Blikre and Producer Sydnee Fried to discuss the concept of capital discipline and focusing on long-term investing vs. short-term growth. In a time of economic sensitivity, Smead believes in value investing, breaking down timeframes to get the most out of his a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service. This post was written by Lauren Pokedoff
Calgary Herald
6 days ago
- Business
- Calgary Herald
Strathcona's hostile bid for MEG Energy called the 'largest investment in the Canadian oilpatch in a decade'
Article content The terms of the deal are the same as a proposal that was originally made to MEG in April, which was subsequently rejected by the company's board on May 13. MEG indicated at the time that it was not interested in pursuing a combination, according to Strathcona. Article content In response to Strathcona's filing Friday, MEG urged shareholders to wait until the board could provide a formal recommendation. Article content MEG's board has formed a special committee of independent directors to evaluate the offer, the company said Friday, noting that it would provide a recommendation within 15 days. Article content Some MEG shareholders have taken the view that Strathcona's bid doesn't sufficiently recognize the quality of the oilsand firm's Christina Lake assets and the potential of its undeveloped holdings at the Surmont Project in the southern Athabasca region of Alberta. Article content Waterous said the deal provides MEG shareholders with an immediate nine per cent premium on MEG's shares, stronger per-share earnings and cash flow, and the potential for a re-rating of Strathcona that would lower borrowing costs and boost its stock valuation. Article content Article content If the bid succeeds, MEG would be Strathcona's 11th major acquisition. Article content Some MEG shareholders have said they're more than willing to throw their support behind a private-equity player with a track record for dealmaking. Article content Cole Smead, chief executive officer of Smead Capital Management Inc., said agreeing to Strathcona's offer would give MEG shareholders a piece of Waterous' private-equity fund without paying any management or performance fees. Article content 'We just get to ride along as a public shareholder and we get to gain the benefits of his capital-allocation stewardship, and we don't pay any performance fees to him,' Smead said. 'There's a divide in the energy business between people who are good capital allocators and people who are not. Adam Waterous is one of the best.' Article content Article content Sayer Energy Advisors had been predicting a more subdued year for merger-and-acquisition activity in the Canadian upstream oil and gas sector compared to 2024, with total transaction values projected to be in the $15-billion range. Article content Then Whitecap Resources Inc. and Veren Inc. (formerly Crescent Point Energy Corp.) announced their multi-billion-dollar merger in March, followed by nearly $4 billion more in M&A activity in the second quarter so far. Article content 'We're already higher than what we thought we were going to be for all of 2025,' Tom Pavic, Sayer Energy Advisors' president, said. 'And I'm not even counting (Strathcona's bid for MEG) because we don't know how this is going to shake out.' Article content
Yahoo
6 days ago
- Business
- Yahoo
US deficit is an 'economic stabilizer' amid uncertainty
Despite worries about the impact of President Trump's changing tariff policies, the US economy is chugging along. Inflation softened in April, fresh data shows, yet soft data about consumer sentiment remains low. Smead Capital Management CEO Cole Smead says it's the US's deficit that is supporting the economy despite spikes in uncertainty. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Tariff volatility is back on Wall Street. President Trump lashing out against China this morning, saying China has violated its agreement with the US. Meantime, Treasury Secretary Scott Beston saying talks with China are quote, a bit stalled. His comments coming after a federal appeals court offered Trump a temporary reprieve from that ruling that did deem his tariffs illegal. Joining us now to break down where to ride out the trade-induced volatility is Cole Smead. He is CEO of Smead Capital Management, which oversees more than $7 billion in assets under management. Cole, it's great to have you in the studio. Thank you for being here. We were just talking about this morning's inflation data indicating that there is a little bit more progress when it comes to prices than we saw in the Consumer Price Index print, but the tariffs still remain a headwind, and that certainly played out in this morning's economic data. How does that impact your investments going forward? Yeah. Um, well, add one more thing, you had consumer confidence hit a low. A low that we saw in 2020, a low that we saw in '09, and also 2011, okay? And I say that because, um, when you put all these things together, I think it's really incredible how the US economy has functioned despite high levels of uncertainty, particularly for business spending, okay? Um, if you go talk to business owners right now, they're pretty scared about the whole tariff situation. I was in an event, someone was, uh, you know, makes guitars for a living, and they were just freaking out. Um, go talk to people on Main Street, and they're not like at soccer practice being like, you know, what's going on today with tariffs? Um, and I say that because it shows you the difference between business. Are they not though? I mean, consumer sentiment numbers have been plummeting. In New York, yes. But in Main Street America, no. That's the best evidence. What is your what is your evidence of that? Are you talking to people across America? Uh, well, I I just mean if you just go talk to people day-to-day, like I I run into investors, I run into people in the media business, and I run into people in, you know, business owners. And again, that's a big idea for them, especially if you import or export your goods, okay? Um, when it comes to day-to-day beyond that, um, that's just not showing up. I'll give you a picture of this. Um, what are we spending in deficit? It's 7%. We normally only spend that. If you look back at the history, we did it, big deficit in World War I, big deficit in World War II. But we quickly tightened up our budget to get back to a much lower level of deficit or none at all. We have not tightened our belt at all. And what that's doing is it's providing this huge economic stabilizer and buffer in the economy. So this is a lot of uncertainty to pour onto the economy in, say, a 60-day stretch. And yet at the same time, economy's not falling off. Consumers' spending is not falling off. Why not? And the answer is because it's really tough to stop an economy when you're spending this much in deficit. And no one's really saying that, by the way. But well, to the very report that you just mentioned, the Consumer Confidence, they actually wrote in and said the tariffs are still top of mind for consumers' minds. That was in the write-in responses. The first mentioned in that stanza as well. So to say that they're not talking about it is incorrect based on that same report you're citing. Correct. Correct. But if you look at it, the spending though isn't going negative. What you're saying is the difference between the soft and the hard data, it sounds like. Correct. When also, that's that soft data is bad data to invest based on. So at low points in the data, what should you expect? That the economy is going to pick up. Because I said 9, 11, 20 and today. And so I would expect the economy picks up because when those people survey, they're telling you, like the weatherman, hey, it's sunny today. It's like, why already know that? Um, they're telling you that there's uncertainty. But the reality is you can't invest based on that. Well, I think we're going to wake up in 6 to 12 months. We're going to find out is we did not slow the US economy because until we slow our deficit spending, you can't slow it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
US deficit is an 'economic stabilizer' amid uncertainty
Despite worries about the impact of President Trump's changing tariff policies, the US economy is chugging along. Inflation softened in April, fresh data shows, yet soft data about consumer sentiment is remains low. Smead Capital Management CEO Cole Smead says it's the US's deficit that is supporting the economy despite spikes in uncertainty. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Wall Street Is Ignoring These Oil Stocks -- Value Investors Are Quietly Loading Up
Something weird is happening in energy stocks and it's catching the eyes of deep value diehards. Roughly 33% of small- and mid-cap oil and gas companies in the Russell 3000 are now trading below book value. That's not normal. It's the highest ratio since the pandemic meltdown. Names like Murphy Oil, Crescent Energy (NYSE:CRGY), and Noble Corp (NYSE:NE) are in the bargain bin literally priced as if their assets are worth more sold for scrap than kept running. Cole Smead, CEO of Smead Capital Management, isn't hesitating: We're going to take advantage of a lot of suckers, he said. He's been loading up on names he thinks could bounce no matter how ugly the headlines. It's been a brutal quarter for energy. The sector is down about 14% since Trump's early April tariff threat. Oil has been whipsawed by fears of a global slowdown, plus a supply spike from OPEC. West Texas Intermediate briefly hit $55 a barrel a level not seen since 2021 and while prices have rebounded slightly, many stocks haven't. But some insiders are starting to lean in. Cenovus Energy (NYSE:CVE) bought back $44 million in shares in Q1 then nearly tripled that pace in Q2. Diamondback Energy (NASDAQ:FANG) is doing the same. Buybacks are the right thing at these levels, said CEO Travis Stice. Others like Chevron don't have the firepower and are pulling back. Not everyone agrees on how to value these names. Book value can be misleading when oil is this volatile. BMO Capital's Jeremy McCrea prefers looking at cash flow and reserves and even on those measures, he still sees deep discounts. Typically, the best times to invest in energy are when it feels the worst, he said. And right now? It feels terrible. But that's exactly when the smart money usually starts buying. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
