Bill’s Energy Play

TRANSCRIPT
Bill Baruch joins us now. He’s making some big moves in that space. So it’s good to see you. Thanks for coming on and telling our viewers what you’re doing. So you bought Shell and you sold Pioneer. Given the news of the week, Interesting. Tell me why.
I did. And you know, I love this stock. I think there was a stretch of three appearances where as my final trade, they have great assets in the Permian. But Exxon knows that Exxon’s buying them and the buy prices to 50. You know, I might be worried that something could fall apart here. And then you get to maybe a 1015, 20% drop.
What I’m looking at here with Shell, we’re very overweight energy. We’re upwards towards 17% right now. But I wanted to get another name in there. European oil majors trade at a deep discount to American and US the US ones. But what I see here is is an absolute breakout in Shell and they have just terrific assets. So I think this is a really nice trade here where you could get a valuation catch up to.
Okay. What about pioneer or pioneer?
I mean, right to 50, Exxon is buying them at 250. What’s the risk here? I mean, yeah, we could trade around to 50, could trade it at a premium. I love the name, but at this point right here, I’d be a little worried that we could see a ten or 15% drop. You know, just because a deal sort of falls apart.
Yeah. And then you bought AMD, which is interesting, too, because you had sold it in mid-July. So why are you buying it back?
Well, we never didn’t dislike the name. This was more of a seasonality trade for us where we wanted to raise cash and and give us some flexibility going into the negative time of year. And what we timed it pretty good in the exit with AMD in the middle of July. Along with that time, we saw Tesla as well and it’s raised a tremendous amount of cash.
What I’m seeing here is from a technical basis, AMD has now moved out of a nice of wedge pattern in back above the 50 day moving average. But the real, real thing here is that the point is, is that there’s an air catch up trade. And I think that AMD could really catch up with NVIDIA. Now, I don’t think that everybody really wants one major GPU dealer and that’s really, I think where AMD’s sort of come into play.
Not only that, their software is starting to catch up with NVIDIA and that was a big point that it made in the first half of the year. If there is no Nvidia’s number one, there’s no number two. No number three, maybe AMD’s number three. Now with the AI software and allowing people to really open the door and utilize their GPUs.
But this is though it’s I’m looking at it. This could be a tough road but we’re looking at this is the this could be really priced in This is this multiple in the expectations could start to be priced in here in the coming months or coming quarters. And I want to be there for that.
I appreciate it and I appreciate you coming on and talking to us about it today. Bill Baruch, we will talk to you again soon. I want to use the Segway guys of of the AMD by to do our calls of the day. LAM research applied Materials upgraded to.
END TRANSCRIPT

Share

Latest Insights

Our team at Blue Line Capital, led by founder Bill Baruch, shares their expertise and unique market perspective.

Facebook

X