Tuesday, April 06, 2010
I decided and invested in BAZAN, the Israeli Refineries in Haifa. Why?
(1) The company had a very nice dividend and follows the Ofer Bro.'s policy of being generous towards shareholders.
(2) The refining margins quoted are confusing and unreliable. BAZAN had over 5 dollars per barrel, American refiners are also profitable. Refining does not seem to be a dead business at all.
(3) The price of the oil is rising and with it the refining margins.
(4) People has been convinced that internal combustion engines are a thing of the past. Cars will move with sails and batteries. Not yet.
(5) Shell has declared its intention to sell its refineries in Europe. Shell is a honorable enterprise, but I dont believe a world. Why should anybody announce its intention to sell something? I believe they are trying to lower the prices of refineries because they want to BUY.
(6) I cant see anything better.
The ill. shows Azerbaijan's former shield. They supply the oil to BAZAN.