He said he is a professional trader. He recommended selling COP right away.
Well here is what is really behind his post.
Many traders shorted COP as well as many other oil stocks as oil gathered steam on the downside. They shorted COP mercilessly and boldly and as recently as early this last week were adding to those short positions. But now with a second week of sharply lower rig count in north america, the worm is beginning to turn. Did you know that this week when COP goes ex dividend, ALL those who are short the stock have to pay the 73 cents a share dividend to those they borrowed the shares from? Add up all the shorts and that is many millions of dollars in dividends they will have to pay. So naturally they want the stock to go lower so they can cover their shorts as low as possible before the ex dividend date of this thursday. The shorts who shorted at much higher prices have been covering this week, but the problem is for late to the party shorts who shorted in the low $60's as recently as early this last week and before that.
Don't believe the trader's lies, hold your shares, buy more if you can, and make them pay up to cover their short positions. With the rig counts falling so dramatically , it is only a matter of time, not if, when oil prices will move up higher.
The short trade on COP was a real winner , but it had its time, and like all things, its time has come and gone.
how dumb can one be? most of the money made in the market for the last 80 years has been from dividend reinvesting.
We responded quickly to the current low price environment and are well positioned with a large portfolio of low cost of supply development opportunities, the majority of our major project spending behind us and a strong balance sheet. Almost as soon as prices began declining, we made decisive adjustments to our capital plans. We reduced our 2015 capital expenditures budget to $11.5 billion, a reduction of more
than 30 percent compared to 2014. Additionally, we had more than $5 billion of cash and cash equivalents on hand at year-end 2014, with balance sheet capacity that we are prepared to utilize.
Our actions to address the current price environment are driven by our focus on protecting the dividend and base production, staying on track for cash flow neutrality in 2017, and preserving our future investment opportunities. Even at our revised capital level we still expect to deliver 2 to 3 percent production growth in 2015 from continuing operations,
The energy landscape has changed dramatically in just a short period of time. It is difficult to know with any certainty what prices will be in the future. So we are focused on the factors that we can control, while positioning our company for sustained success even in a world of lower commodity prices. This means continuing to lower the cost of supply of assets in our portfolio, maintaining capital flexibility and
financial capacity, exercising vigilance on our cost structure, and executing safely on our investments.
We know our priorities and we are committed to them—a strong dividend, cash flow neutrality
in 2017 and a focus on returns. We will closely monitor the environment and adapt as necessary to ensure ConocoPhillips remains one of the winners—and a core energy holding in any price environment.
CEO say no to selling, and say "hell No". But, it is all about the right price. $100 should do it.
4 Top Exploration and Production Energy Stocks to Buy Ahead of Earnings
Excerpts from article on COP
This top intergrated is a solid growth play, and an outstanding dividend-paying stock. The company has spent the past five years divesting assets, and although it is cash rich, it has somewhat dampened earnings and growth expectations all year long, which could prove just the catalyst that helps it come in above current expectations.
ConocoPhillips is a major global E&P company with operations and activities in 30 countries that include the United States, Canada, United Kingdom, Norway, China, Australia, offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia and Qatar. There has also been speculation recently that the company is considering selling some of the North Sea assets it owns, including Aasta Hansteen, Alvheim and Grane fields. That sale could raise as much as $1 billion for the company.
ConocoPhillips investors are paid an outstanding 4.25% dividend. The RBC price target is set at $78, and the consensus target is $75.19. Shares closed Thursday at $68.26. The company reports April 30.
There are lots of opportunities for you out there which do not pay a dividend, Professional Trader.
Some people are trying to say so but NO definitely not ! Plate tectonics create forces on land masses. Those forces shift and adjust due to re situating of the different plates causing disturbances in different areas.
If fracking has any effect at all, it would be very minor.
In the first place, the USGS is a government agency. This should immediately cause your eye brows to rise, at least a little. Given the present administration that has run rough shod over all facets of energy and implemented strong arm tactics at every opportunity is involved, one should be especially skeptical of their response. Second, they keep trying to push this as a NEW technology . . . . it is NOT ! They were fracking zones to enhance production long before I began in the oilfield 35 yrs ago. This report is full of it ! Another attempt by the feds to increase control over a capitalistic enterprise. Drink the koolaide.
The 'Street's' Opinion says yes:
ConocoPhillips (COP - Get Report) rebounded more than 3% this week and recently changed hands around $63.36. Ahead of the company's analyst meeting on April 8, management said they have extended projected capital spending budget cuts through 2017, because of lower expected oil prices. That said, ConocoPhillips believes it can still grow overall production and support its quarterly dividend of 73 cents a share.
We maintain the stock is attractive at current levels, for its 4.6% dividend yield.
Exxon Mobil (NYSE:XOM) releases a statement suggesting ways the U.S. government should adjust its energy policies, including allowing U.S. exports of oil and natural gas, approving the Keystone XL pipeline, and making the regulatory process less burdensome and more transparent.
"The energy industry has been an economic engine for the entire nation at a time of recession, slow growth, and falling labor participation rates,” CEO Rex Tillerson says.
Time to call our elected representatives
Cushing is not about to overflow. In the last few years they have added significant capacity. Based on numbers I can find on line it is around 70% full and we are hitting the time of year where refinery capacity starts to ramp up after being down for maintenance and switch over to summer fuels.
Constant flow of SPAM. Who in their right mind would even think of responding.
Sentiment: Strong Buy
Ummm, did you notice the price of oil? You should not be allowed to invest your family's money. You are doing them harm. It's investing 101: Buy equities when they are low, sell them when they are high. Oil is low, oil companies are low, buy them. That will be $50.