Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
![SPR Oil[39]](https://buildingbenjamins.com/wp-content/uploads/2023/03/SPR-Oil39-1024x640.png "SPR Oil[39]")
Video: 8 Compelling Energy Stocks. SPR (Strategic Petroleum Reserve) Reversing Soon. Russian Oil Sales. LNG.
PR (Strategic Petroleum Reserve) depletion is ending. The US is draining this reserve by about 700,000 barrels per day. Eventually, this will need to be replaced and could increase demand by 700,000 to 1,000,000 barrels a day as the SPR is refilled. A possible swing in the supply-demand balance of 1.4 to 1.7 million barrels per day. This is significant for commodity pricing when one looks at the US demand of 19-20 million barrels per day.
Video: Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Centrus Growth Enriched by Domestic HALEU Deal
• The first domestic enriching capacity contract was granted to Centrus since US capacity fell to 0 in 2013.
• Significant money in next-generation nuclear technology utilizing HALEU fuels. Centrus has first mover advantage, being granted $150 million from the DoE for commercialization.
• Centrus expects a 40% growth in nuclear energy by 2050 without climate incentive policies. 105% with those policies included.
• Every US reactor imports 100% of its fuel, including 30% from Russia. Estimated 15 million SWU gap if Russia is cut off from uranium exports
Global Payments Unloved and Undervalued
• Movement toward B2B payments, a historically under-penetrated sector for payment processors.
• Strong background for growth in megatrends, 15% 5-year-CAGR expected for eCommerce.
• #1 player in card issuance, top 5 in payment processing globally.
• Expecting 6% company-wide revenue growth in 2023, and 15% growth in merchant solutions.
Video: 120 Consecutive Years of Dividends for National Fuel Gas (NFG). An attractive pullback from $76 high.
• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as stock has pulled back from $76.
120 Consecutive Years of Dividends for National Fuel Gas
• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as the stock has pulled back from $76.
4.2% Dividend Yield and 7-10% Growth for Comstock Resources
• 4.2% dividend yield.
• Growing production reached a record high of 1,400 MMcf/day.
• Sustainable EPS and FCF (Free Cash Flow) growth.
• Lowest-in-the-industry cost structure which helps generate 80% EBITDA margins.
• Huge FCF growth of 218% to $286 million for 3Q22.
• Delevering program to reduce Debt-to-EBITDA to 0.9x.
Video: 4.2% Dividend Yield and 7-10% Growth for Comstock Resources
• 4.2% dividend yield.
• Growing production reached record high of1,400 MMcf/day.
• Sustainable EPS and FCF (Free Cash Flow) growth.
• Lowest in the industry cost structure which helps generate 80% EBITDA margins.
• Huge FCF growth of 218% to $286 million for 3Q2022.
• Delevering program to reduce Debt-to-EBITDA to 0.9x.
AKAM: Trusted in Security Moves into IAAS Sector
• Shifting mix toward security solutions and Infrastructure as a Service (IaaS).
• Moving away from mature products like CDNs (Content Delivery Networks) toward more edge offerings.
• Countering employee stock-based dilution with $1.4 billion in authorized buybacks.
• Strong 3–5-year growth rates on computing and security segments more than offsetting modest declines in CDN.
• Increasing deal size and increasing add-on services.
Citigroup’s Big Dividend Finally Set to Grow
• 4.2% dividend yield.
• Repositioning toward a consumer-centric model, investing money into digital banking and improving customer experience.
• Divesting from most legacy banking outside of North America, ICG (Institutional Clients Group) will stay international.
• Strong labor markets drove fewer credit losses.
• Investment banking losses offset by strength in commercial/customer banking.