Kaboom! 50% of the company on-sale. Lots of supply = the market has punished it down ~10% for the day.
Although it may not be all bad, with the foreign holding gone there is potential for ASX50 index inclusion and the possibility for capital management has increased now that the release of franking credits becomes more appropriate. In a yield appreciative market this should bode well in the medium term for Caltex.
The OPEC oil cartel will be forced to call an emergency meeting within weeks to stabilise the market if crude prices fail to rebound after crashing to eight-year lows of $US35 a barrel, two member states have warned, the UK Telegraph's Ambrose Evans-Pritchard says:
Emmanuel Kachikwu, Nigeria's oil minister and OPEC president until last week, said the cartel was still hoping the oil market would recover by February as low prices squeeze out excess production from US shale, Russia and the North Sea. But nerves are beginning to fray.
"If it doesn't, then obviously we're in for a very urgent meeting," he said. Indonesia has issued similar warnings over recent days, suggesting the OPEC majority may try to force a meeting if Saudi Arabia's strategy of flooding the market creates a deeper crisis.
According to a note out of Morgan Stanley, it has retained its underweight rating and $26.00 price target on the fuel supplier’s shares. The broker believes that investors ought to be cautious amid speculation that Puma Energy might be interested in acquiring the petrol stations owned by Woolworths Group Ltd (ASX: WOW). Its analysts suspect that it would be unlikely that Caltex would be contracted by Puma to supply its fuel, putting future earnings at risk. I think that Morgan Stanley makes a great point and would suggest investors approach Caltex with caution.
Supply extra cheap fuel for a while will help with quick brand recognition.Whilst the Ampol name will be very familiar to Australians over the age of ~40, it's an unfamiliar brand to the younger half of the population and to the not insignificant number of immigrants who've arrived in Australia since then.
Those were the days, petrol 50c a gallon, beer 80c a jug and wages $22/week.Supply extra cheap fuel for a while will help with quick brand recognition.
On history I remember Mobil stations and the scarce Golden Fleece. Crank handle start ups. But NO not horse and cart. When I started driving a carton of beer and a larger tank of petrol cost about the same, $20 and was all stocked up with a bit of change for parking..
You would have been baptised with Hannans Lager. I had a HK, it nearly ended up with a different colour for every panel, including the roof. The coppers loved pulling me over to have a chat.Those were the days, petrol 50c a gallon, beer 80c a jug and wages $22/week.
Myself and a mate used to put $2 of fuel in the HG 253, take $2 for drinks and have a great night out in Kal (beer, women and fights the good old days in the wild west).
I had a HK, it nearly ended up with a different colour for every panel, including the roof. The coppers loved pulling me over to have a chat.
Just to round out the Holden model series...,Myself and a mate used to put $2 of fuel in the HG 253, take $2 for drinks and have a great night out in Kal
The Alexandria AmpCharge site, at the Ampol Woolworths MetroGo site, is the first of 120 electric vehicle fast-charging sites to be delivered at Ampol forecourts across Australia by December 2023.Ampol has made its entry into electricity supply, opening its first AmpCharge electric vehicle charging site in the inner-city Sydney suburb of Alexandria, with a pilot offer to household customers in the wings.
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