(B)(N) TLM Talisman Energy Incorporated

Deal Book. Talisman Energy popped +10% today to $13.15 (CDN) and a gain of $1.4 billion to $13.6 billion on confirmation that Mr. Carl Icahn has acquired a position in the company of about 62 million shares now worth $820 million. That’s a good day’s work (Reuters, October 7, 2013, Talisman Energy shares surge as Carl Icahn acquires stake)!

The Risk Price (SF) is $12 and up from $10.50 in August, and, therefore, Talisman is at last eligible for inclusion in the Perpetual Bond™ (please see Exhibit 1 below) with the usual safeguards. Our estimate of the downside risk in the stock price due to the demonstrated volatility is minus ($0.75) or less than a dollar a share if we can afford that, and the November put at $13 is selling for $0.70 per share so that for a cost of roughly $14 per share today we can see how this works out for the next month. The company is paying a dividend of $280 million to its shareholders this year for a current yield of 2%.

For more on the depressed Canadian Oil & Gas business, please see our recent Post, Black Gold In The Canadian Oil Patch and a wrap-up of the storied Nexen Best Thing.

Exhibit 1: (B)(N) TLM Talisman Energy Incorporated – Risk Price Chart

(B)(N) TLM Talisman Energy Incorporated – October 8 2013

Talisman Energy Incorporated is an oil and gas Company. Its main business activities include exploration, development, production, transportation and marketing of crude oil, natural gas and natural gas liquids.

(Please Click on the Chart to make it larger if required.)

From the Company: Talisman Energy Incorporated an upstream oil and gas company, engages in the exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids. It holds interests in various oil and gas properties located in Canada, the United States, Colombia, Peru, Indonesia, Malaysia, Vietnam, Australia, Papua New Guinea, North Sea, the United Kingdom, Norway, Algeria, Iraq, Sierra Leone, and Poland. The company was founded in 1925, has 3,000 employees and is headquartered in Calgary, Canada.

For more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100.

Postscript

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Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.