in this market.
Uber valuation 50 billion
TOTAL valuation only 110 billion
lol, market is rigged and wall street is taking advantage of naive investors via CNBC, Bloomberg and other infomercial type media distribution.
I think you are not getting the bigger picture which means at the end of the day, oil producing countries are going to work together instead of competing and creating price war like the phone companies where no one wins!
Sentiment: Strong Buy
They also need fuel to run these planes domestically. Iran has been selling oil in the black marker probably for years so if any the price of oil will go up when they see no need for that market anymore.
I have been trading/ investing stocks for more than 20 years and the pattern is always the same:
Stocks either get oversold or overbought.
In the case of energy stocks we are definitely near the bottom!
This is exactly the point I am trying to make. Do people stop driving, traveling and heating their homes, etc.
Analysts, upgrade housing, airlines and car companies and downgrading energy stocks like it's the end of the world.
The reality is that at some point, most of the resources are going to dry up and the emerging markets will be needing more gas and oil.
Short term the oil stocks will suffer but long term big oil companies will get even stringers due to less competition and higher oil demand.
S&P Capital IQ’s Stewart Glickman explains why he upgraded shares of ExxonMobil to Buy from Hold:
We cut our 12-month target price by $5, to $90, on lower cash flow multiples. Q2 EPS of $1.06 vs. $2.05, missed the Capital IQ consensus view by $0.05. We think earnings quality was better than indicated, given an elevated tax rate and a heavy Q2 refining maintenance impact. Despite weak crude oil prices, international upstream generated profits, with domestic a slight negative. While buybacks look to decelerate in Q3, we think Exxon’s core business is generating solid ROIC and notably above-peer free cash flows. Shares are trading at a more than three-year low and yield 3.5%.
I do my research instead of watching CNBC or Bloomberg. Saudis are going to cut production ( or in other words they may not even be able to extract at the current levels) by the end of summer. US companies are cutting cost and production. Competing over market share by selling oil at a loss is going to stop soon.
they probably end up buying all the small oil companies for peanuts if things gets worse.
On the other hand cutting cost was needed and we could see the stock above 90 dollars soon.