Of all the international oils, XOM is uniquely positioned with massive cash holdings. Just look at its balance sheet and compare it to CVX. Much like AAPL, XOM is very much a cash hoarder. It can endure low crude prices just about indefinitely and continue to pay (and actually increase) the divvy.
Don't be seduced by a higher payout rate from COP or Royal Dutch. Think of sub $40/barrel for the next 5 years and ask yourself which company you want to own.
Your analysis of NCZ price weakness makes sense. I wish I would have known my stock would track commodity prices when I purchased @ 8.50/share.
The bright spot is that, like everything in the financial world, what's hated now will be loved later.
for being in Ponzi-like funds... NCZ, PHT, etc.
Over 6 years of zero yields in money market and bank deposits forces irrational decisions. Now I'm losing 30% of principal by wandering into unforeseen risk. Fed monetary policy has destroyed a generation of savers. And don't expect any rate hike in September cause you'll be sorely disappointed.
You're correct... dividend cut is baked in already. NCZ share price will spike higher on the news as the perception that a more sustainable payout model will be extremely bullish for the stock.
I'm not buying more because I don't want to be too concentrated in one position but I feel very confident about NCZ 4 to 6 years down the road. Interest rates may drift higher but if you're waiting for a 5% return in a money market it might never happen again in our lifetimes. Retired folks need to come to terms with that sad reality.
CNBC is running this absurd message on its pre-market ticker. I have never seen a take over story shrouded in so much ambiguity. How can a company approach another one with no price? Why are investors being left in the dark? I'm sure Pershing knows the details
They wiped out NCZ premium before it finally bottomed. PHK is still sitting at 40% over NAV even after precipitous sell off. The math is painful to compute as market seems determined to eliminate premiums in leveraged CEF's. If you're bottom fishing better bet is NCZ where the carnage is over.
I think of my bond CEF's as if they were annuities with no death benefit. An income annuity is simply an insurance contract that has no stated asset value (similar to what NCZ is becoming)