Fertiliser companies are very out of favour at the moment. A major Russian producer has recently turned its back on a cartel and the stocks of fertiliser companies have quite rightly been thrashed as a result. This means that value investors and contrarians will be looking for any mis-pricing.
This is the final instalment of my How to value an oil company series, and it is a real life example of a valuation. Novus energy is a small oil company trading at a large discount to its fair value.
The oil industry uses several standard metrics to value and evaluate oil producing companies. In this article I explain what they are, their strengths and weaknesses and how to use them.
The next stage of an oil company is production. The process is fairly simple in theory but it is important to understand otherwise you could end up overpaying for an asset with quickly diminishing returns.
In Part 1 I looked at oil prices briefly, concluding that while important it is unknowable and therefore, as Warren Buffett advises, don’t spend all your time worrying about it. Instead lets worry about what we can know and that’s oil exploration.
This series of articles looks at how to value an oil company, from looking at the price of oil to oil exploration and production. By highlighting the key metrics used in evaluation you will have all the tools needed to value an oil company.
This is the final part of my series on hedging currency risk. I decided to go through how I decide on whether I want to hedge or not. For me I don’t automatically hedge, instead I choose whether to take on the risk or not based on analysis.
Part 3 of my mini series on hedging currency risk. Here I show the results of the three hedges I put on, and decide which one performed the best.
In the first part of this series I talked about the various options for a small time investor to hedge currency. In this second part I will say how I intend to test these against each other and detail the exact transactions I have performed.
In part 1 of this series I look at the options available to investors for hedging currency risk and how I plan to find out which is best.