Why is Chevron stock suddenly underperforming Exxon and all other major integrated oils? Exxon released a lousy earnings report (missed expectations by wide margin), while Chevron released a great earnings report (blew out expectations). Yet Chevron stock seems to be underperforming Exxon stock by a margin of almost 1% PER DAY since releasing that report, and is performing worse than the other integrated oils by significant margins too. Was where something negative in the conference call that I missed?
On July 27/2007 (ER) -- I posted the question: "WHY IS THIS DOWN?" which generated over 50 posts some good, some not so good, some spirited and some emotional ones. ~~~~~~~~~~~~~ All in All...there was NO 100% explanation for it and there is NONE today. (Yes you can come up with some answers but all of them combined does NOT justify the stock sliding back about $10.00). So there. Later. :)
Why is underperforming EXXON? Reason EXXON is a Dow 30 stock an as such will get more buying if people buy the index. I picked CVX over XOM because I still feel that CVX has more potetial for adding BTUs with its holding in Asia and the Gulf. XOM is so big it will be more difficult for them to offset its depleation rate.
Why is CVX stock down in the last 2 weeks? Some Hedge funds have had to liquidate their holdings and have been force to sell the good with the bad. Also their is a concern on Wall street that oil prices will take a dive in late summer and the fall like they did last year. I think you will find the latter to be unfounded. Relex and take the opportunity to dividend reinvest for this stock while price have dropped.
Exxon buying back shares? I hadn't thought of that. Of course, Chevron management isn't smart enough to be doing the same thing as its stock is getting hammered. Maybe that's why Exxon stock consistently trades at a higher P/E ratio than Chevron stock.
Hey there::::: ALL Mgmt in A L L Companies are Overpaid. That is a given ~ so that is NOT the reason. The other reason you list is: WEAK Mgmt. -- I dispute that strongly. -WHY? Because when the stock was above $94.OO You did NOT complain about Weak Mgmt. What changed in few weeks? --- Not the Mgmt.- the same strong and VERY SMART Mgment which took the stock to its 94.5 hights.~~~~~~~~~~~~~~~~~~~~~~~~~ There are a LOT of E X T E R N A L reasons for this temporary setback; (Lot of them were already posted on this Board). _ So we just have to wait for better times I guess; That's the Mkt. for you. **EOM**