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Analyst Sees Buffett’s Berkshire Eventually Buying All of Occidental Petroleum

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© Reuters Analyst See Warren Buffett’s Berkshire Eventually Buying All of Occidental Petroleum (OXY)

By Sam Boughedda

In a note to clients Thursday, Truist Securities analyst Neal Dingmann said they believe there is a good chance billionaire investor Warren Buffett will buy the remaining 2/3 of Occidental (NYSE:OXY) that he and Berkshire Hathaway (NYSE:BRKa) do not own once the company becomes investment grade.

“Buffett disclosed the purchase of additional Occidental common shares last night resulting in the ownership of ~1/3 of the company (includes pref ownership) with the investor’s current energy company owning mostly IG companies,” said Dingmann. “In our opinion, OXY is quickly on its way to becoming IG as debt could soon go to

The analyst believes the company is starting to better fit the Buffett mold.

“While Berkshire Hathaway Energy (Private) is approximately 1/3 coal/gas/wind with most future focus on wind/solar, we believe OXY could fit nicely within the portfolio,” the analyst added.

Truist said that while OXY is not yet investment grade, they believe it will achieve it this year “given the material continued FCF/debt repayment among other positive drivers.”

“Further, while 10% in just a couple of years. As such, we believe OXY is ideal to be fully purchased by Buffett once IG status is met and more LCV business is generated.”

Occidental shares initially jumped Thursday but are down on the day at the time of writing.

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Bankman-Fried’s FTX internally mulling Robinhood deal – Bloomberg News

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© Reuters. The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

(Reuters) -Sam Bankman-Fried’s FTX crypto exchange is exploring whether it might be able to acquire Robinhood Markets Inc (NASDAQ:HOOD), Bloomberg News reported https://www.bloomberg.com/news/articles/2022-06-27/sam-bankman-fried-s-ftx-seeking-to-buy-robinhood-hood on Monday, citing people with knowledge of the matter.

FTX is discussing internally how to buy the app-based brokerage and Robinhood has not received a formal takeover approach, the report said.

Robinhood, shares in which rose 14% in afternoon trading, declined to comment. The company has a market capitalization of nearly $7 billion as of Friday’s closing price.

FTX did not immediately respond to a Reuters request for comment.

Last month, Bankman-Fried had revealed a 7.6% stake in Robinhood but said he did not have any intention of taking control of the retail-trading platform. Robinhood’s dual-class shares currently give its founders control of 64% of the voting shares outstanding.

Trading volumes at the brokerage have eased from last year’s frenetic pace when retail investors used the platform to pump money into shares of so-called meme stocks including GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).

That, along with a sell-off in high-growth technology stocks, has driven a near 50% drop in Robinhood shares this year.

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FTX Said Exploring Potential Robinhood Acquisition, News Seen as ‘Positive’

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FTX Said Exploring Potential Robinhood (HOOD) Acquisition, News Seen as ‘Positive’

By Sam Boughedda

FTX, the crypto exchange founded by Sam Bankman-Fried, is said to be exploring the possibility of whether it could acquire Robinhood Markets Inc (NASDAQ:HOOD).

Bloomberg, citing people with knowledge of the matter, said FTX is speaking internally about how it could buy the app-based, primarily stock brokerage. However, they have made no takeover approach, and no final decision has been made.

Bloomberg said Bankman-Fried wrote in an emailed statement that they are “excited about Robinhood’s business prospects and potential ways we could partner with them,” but there are “no active M&A conversations with Robinhood.”

In May, a company Bankman-Fried controls, Emergent Fidelity Technologies revealed it had acquired a 7.6% stake in Robinhood.

During the pandemic, Robinhood thrived as retail investors and traders flooded its platform. However, it has struggled since, and its shares are down significantly since its debut in 2021.

Nevertheless, today’s report has resulted in a 17% jump in its stock price.

Mizuho analyst Dan Dolev sees the potential deal news as good news for Robinhood, but also said the company can make it on its own.

“We believe that a potential deal would be good news for HOOD as it helps expand its reach and breadth,” Dolev said. “We also believe that HOOD can survive, and thrive on its own.” He rates the shares a Buy with a $14 price target.

Earlier in the day, Goldman Sachs analyst Will Nance upgraded Robinhood from Sell to Neutral with a price target of $9.50. The analyst notes are now trading at an ~$6.5bn market cap versus its cash position of ~$6.2bn and tangible book value of ~$7bn. Further, the rising interest rates should significant acceleration net interest income over the next several quarters and help reduce Robinhood’s losses.

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Bankman-Fried’s FTX seeking path to buy Robinhood – Bloomberg News

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© Reuters. The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

(Reuters) – Sam Bankman-Fried’s FTX crypto exchange is exploring whether it might be able to acquire Robinhood Markets Inc (NASDAQ:HOOD), Bloomberg News reported on Monday, citing people with knowledge of the matter.

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