Want to make moneyTotal??? Do the math. Total has a market cap of about $119 billion. It earned $17 billion or so last year. Will earn more this year.
The earnings will cover debt service. what does that leave?
If TOTAL eliminated the $6 billion dividend...and sold all it's Sanofi Avnetis shares (close to $4 billion worth. That frees up about $10 billion!! Add that onto about $28 billion of cash on and already..... that ads up to $38 BILLION of cash on hand, dividends cash and Sanogii shares.
So why woudl TOT have a $119 billion market cap.....if they have access to up tp $38 billion of cash? Basicallay using TOT's own cash, eliminating teh dividend.and selling Sanofi shares....TOT coudl buy back about 35% of teh company...cheap! Using other cash flow...and all dividend money.you coudl basically take TOT private in about 8 years or less. But even if they bought back 50% of TOT with easy cash.......down to 1 billion shares outstanding.with about $18 billion earnings...that is about $16 a share in earnings? I would give teh improved TOT a 9 times PE reatio? 9 times $16 p/s is a price target of $144. And that is conservative,
So woul the does at TOT rather see teh stock go down and down.....with a 5.5% dividend (double taxed).or woudl you like to see TOTAL elimiante alkl the waste and buy back 50% of shares..and see each share worth perhaops $150? You make a lot more this way that you ever woudl in a dividend.