Talos Energy: Strategic Positioning in Mexican Oil Industry

In a move that is bound to cement Talos Energy’s position as one of the leading oil exploration and mining company in North America, the company’s senior executive announced that they are considering partnering with Pemex. The partnership that will also include Sierra Oil and Premier Oil which are part of Talos Energy-led oil exploration consortium will likely come into effect in 2019. The collaboration with the Mexican governed oil company has been necessitated by the increased possibilities that oil reserves that the consortium discovered during the Zama project located in the Gulf of Mexico’s shallow waters may extend into blocks allocated to Pemex. The two parties hope to thrash out the details of the final details of the partnership by the end of 2018.

The Collaboration

The announcement was made by Tim Duncan, the CEO of Talos Energy during an interview in early October 2016. He noted that the final discussions on the partnership would determine the company’s investment decision. During the meeting, the Talos-led consortium will share their exploration data with Pemex. An alliance with Pemex will bode well for Talos Energy since they stand to benefit from Mexico’s incoming president plan to increase investment in Pemex. Mr. Tim Duncan met with the incoming president and was reassured of the government’s support of the country’s oil industry especially Pemex. The consortium, which brings together oil exploration companies from England and Mexico, won a contract to carry out oil exploration in the Gulf Mexico. The joined operations hit the jackpot when they discovered a huge oil deposit that is estimated to hold close to 3 billion barrels of oil in crude oil and recoverable reserves.

Talos Energy’s Meteoric Rise in the Oil Industry

Founded in 2012 by a group of experienced geology and oil experts including the company’s current CEO and president Tim Duncan, Talos Energy has grown into one of the leading oil explorers and producers in North America through strategic acquisitions and investment in innovative technologies. Headquartered in Houston, Texas, the company established a significant operational footprint in the Gulf of Mexico and the Gulf Coast using some of the latest technologies to explore, exploit and produce oil and its related products.

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CEO Steve Ritchie Shows Optimism

Even though Papa John’s third-quarter earnings report leaves much to be desired, Papa John’s International Inc. CEO Ritchie took heart from the existence of several silver linings. First, the bruised company is on its way to winning back its customers’ trust. There are early indications that the remedial actions taken so far are working, sufficient to justify Steve Ritchie’s statement that he and his fellow executives are “optimistic about the opportunities ahead.” Steve Ritchie’s optimism stems from data collected by several research firms that suggests that there has been a shift in customers’ perception of Papa John’s (@PapaJohns). Negative perceptions have shifted to either neutral or even positive in the wake of the company’s launch of its “Voices” campaign back in September. Papa John’s “Voices” campaign seeks to rebrand the company in terms of focusing in on its employees. In spite of the progress made, Steve Ritchie Papa Johns acknowledges that challenges still exist and that there is a great deal more work that needs to be done. Second, total international sales of Papa John’s stores increased by 10 percent as a result of the opening of 300 new stores last year.

Third, Papa John’s restructuring of its executive suite has the benefit of helping the company to shift its focus back to its customers. This restructuring is led by the experienced Mike Nettles, who is serving as the company’s new executive vice president and chief operating and growth officer. One of the result of this restructuring is the creation of four new vice president positions centered around the following customer touchpoints or interaction points: customer experience, menu strategy, innovation and branding, and analytics and technology. Fourth, there is talk of an acquisition from at least four interested parties, the result of which has been several huge jumps in Papa John’s share prices. There are, indeed, quite a few reasons for CEO and President Steve Ritchie to be optimistic about the future of Papa John’s.

Get more info: https://www.bloomberg.com/profiles/people/17045820-steve-m-ritchie

Ted Bauman: Invest In Chinese Stocks

One of the hot topics that have been taking up a lot of media time is the trade war between the United States and China. Some believe President Trump is doing the right thing taking a tough stance with China. President Trump sees the tariffs as a means to fix the trade imbalance between the two countries and to punish China for stealing intellectual property. Economist Ted Bauman is of the mindset that the trade war is only going to have negative ramifications for the global economy if it does not end.

While he opposes the trade war, he recently has been advising fellow investors to start paying attention to the potential bargains in the stock market that are occurring because of the fear of the trade war. He noted that the iShares China Large-Cap ETF was selling at a major discount. This ETF tracks some of the largest publicly traded companies in China. Ted Bauman listed some of the favorable metrics of the ETF that he thought made it appealing to investors. He noted the price-to-earnings ratio was 2.6. He said that it was only five years ago that investors had no issue paying a price-to-earnings ratio of 15.

Today this represents just how truly undervalued some of the biggest companies in China are. He also looked at the distribution percentage and the yield hadn’t hit that level since 2009. Ted Bauman says the trade war has had implications for the Chinese yuan. The currency has been declining since the start of the year. As the US placed tariffs on Chinese exports, this prompted the Chinese government to let the yuan fall in value. The stock prices of Chinese companies have moved with China’s currency. To date, the Shanghai Composite has lost eighteen percent of its value. Ted Bauman feels that China could end up doing more to retaliate against the United States. President Trump is threatening further tariffs if China does indeed retaliate. A move China could take is to hurt US companies that do business in China. This would eventually drive stock prices down in the United States, as many of these companies are listed on major stock exchanges.