Hess Looks Like a Buy on This Pullback

Paul Singer, the head of hedge fund Elliot Management, reached an agreement with the leadership at Hess (HES), where he was engaged in a proxy fight. The takeaway from the deal is that Singer has won his battle for the most part and that he is likely to get the divestitures he wants -- and that this will ultimately lead to a higher share price. With the stock down sharply on the news of the deal, Hess represents a great opportunity right now.

Paul Singer recently became an activist at Hess, looking for board seats and the departure of namesake CEO John Hess from the company. Singer wanted the kind of divestiture and concentration on the exploration-and-production assets that would translate into faster profits, considering the still-high global oil price of well above $100 a barrel. For Hess, that would mean a sale of many of the terminal and refining assets, a dominant portion of the East Coast terminal and storage business. HETCO­­­­ -- Hess's profitable trading arm, brought into the company from Goldman Sachs (GS) -- would also be sold....167 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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