Diamonds and Dogs
Another merger in the oil patch. Pipeline company, Buckeye Partners (BPL) is jumping 28% after agreeing to be acquired by private equity firm for $10.3 billion. The Buckeye CEO, said he thinks his company's position in public markets has been hurt by a disconnect between the way public markets value midstream assets verses their private counterparts. This deal is on top of Occidental Petroleum (OXY) recently outbidding Chevron (CVX) for Anadarko Petroleum (APC) which included Warren Buffett adding $10 billion to get the deal done. There may be more deals to come in the oil space.
The Uber (UBER) IPO is spinning its wheels. The largest ride-sharing US company is down 2% following their IPO pricing at $45 a share. Uber's IPO comes against the backdrop of a spike in trade tensions between the United States and China that has weighed on financial markets and increased investor skepticism about its ability to turn a profit sooner rather than later. The IPO was a landmark moment for the decade-old company, which was started after its founders struggled to find a cab on a snowy night and has grown into the world's largest ride-hailing company, making more than 10 billion trips. Rival, Lyft (LYFT) is down 5% to a new 52 week low and down 40% from its first day of trading.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.