Good news but the asset sale only provides half of the money needed for the 30 million buy back. The 8 cent increase was absolutely expected and to a large extent is already built into the PSP so I don't expect a large increase in price. Now, when we get news on the much anticipated sale of our foreign assets then we get a significant spike. Given that OXY has sold higher than XOM for the last 6 days or so I believe this anticipated event was already in the price/ For now OXY moves with oil. At least that is an improvement over three weeks ago when OXY trailed OXM,BP and COP by a significant margin.
The value in this stock is going to take a year to play out. I owned both MRO and COP for the splits and both worked out real well. The real value does not happen until the new original company OXY and the spin start trading separately. All of this was already baked into the stock when Chazen alluded to the spin at the recent earnings conference call.
If you want to have a shot at quicker profits with more risk, buy a shale producer, a biotech company, or something in the cloud/social media area like Facebook or Salesforce. Those companies can put a lot of zip in a portfolio if you have the stomach for it. OXY is more of a sure thing over time just as COP was. I still own COP and PSX. PSX is a gold mine along with their JV partner SE.
I am interested in what OXY will do with the chemical company and how they handle the midstream operation. I now they like the midstream/pipeline because it also allows them more flexibility to market their oil. The analyst's would lie them to drop it into an MLP and then spin off some of the units so that its value can be determined and thus show more value for the units and managing partner units that OXY would keep. They have been very tight lipped about chemicals which if enough value is created in the spin and sales they may keep.
Agree. They (CEO and Board) will have to unleash a tsunami of money/buyback/dividend/CA separation to raise the price as much as I would like. It's not as big a XOM or the others so it should move more quickly, but I continue to be disappointed. We've already been to $95 before these announcements.