Debt has swamped the value of the company. The market value according to Yahoo is 6 billion and the debt is 11 billion.
One guy says boo and every one runs to sell? Is this guy Warren Buffet or something? Is the time to buy now or 70 like one guy says. Did Mickey just die or something? What is wrong with Disney?
The advice is don't buy oil stocks. Oil is a cyclical commodity and so if you want safe, don't go into commodities. XOM is the safest of the integrated oils but you will be better off going to consumer non durable's. Why not SJM, HSY or even PG. GIS is battered and now has a 3% yield. All are strong stable companies with growing dividends.
There will not be a divvy raise for a long time. A divvy cut will happen if we get another year of sub $50 oil. Why even bother? Why not buy a company that is raising dividends.
Sorry but the industry is in consolidation. It is one of the reasons that I bought WHR. The smaller players are being gobbled up. Amana, Kitchen Aid and Jenn Air all Whirlpool products. Kenmore is a Whirlpool. Maytag? bought out by Whirlpool. Fewer players equal higher prices. It is becoming an oligopoly.
You do need to know that their is a great consolidation going on in the industry. Whirlpool owns lots of brands. I guess you could go Korean.
Don't rush. Been posting on this board for months that you should wait for below 80 to buy. Now we are almost there. Long term buy between 73 and 80. I haven't seen capitulation selling yet. Suspect that will come at 80. I remember what one oil trader said several months ago. 40 is the bottom for oil. I think he is right.
You need to look at the 73 level which is around the 200 DMA, which is logical support. Ok call it 75 if you like, but that is where the stock is headed. It might be worth buying at that point. For now, let it fall below 80 before buying. I have been saying that since it was more than 100. People thought they were buying a bargain when they bought it above 100 after it fell 20 percent but earnings estimates are falling faster than the stock price. I do think XOM is a bit safer.
A lot of growth is already priced in. Chinese have gotten real good at cheating American investors. That Jack Ma guy really really can sell a company.
I bought today. Don't really understand the selloff although they seem tired to the energy sector. With cheap crude there may be less need for liquefied natural gas. I just think the dividend is safe and a 10 percent yield, I am willing to take the risk.
If they don't have the cash to pay it they won't. It is simple arithmetic. At this earnings rate they are bleeding cash big time. You can only cut expenses and sell assets so long. Sure they will pay the checks for a few quarters but if these low oil prices go on too long they will be dropping the dividend.
Well I said back in January on this very board that I wouldn't even look at CVX until it hit 80. People scoffed back then but look we are almost there. Below 80 there does appear to be some long term value regardless of the short term price action. 60-65 is certainly doable when folks hit the panic sell button. We may be stuck with 50-60 oil for quite awhile and the earnings stream as you can see looks quite different then it did when oil was 100 a barrel.
Never saw why people were so quick to jump back into oil stocks. Market is starting to get bored with oil stocks so they are leaving. Always thought it was ridiculous that people were so quick to jump back on a sinking ship.