I posed the question more to find out why someone wouldn't buy it if SO is going to give them $66 per share at some point. I'm not going to buy it, but was interested in learning how these buy-outs work, and why the stock is at 61 when SO will give them 66.
I was thinking the exact same thing. If you buy at 61, you make almost 10% at 66. I think the risk is that the deal falls through somehow and then you've paid 61 and then the stock goes back to the 40s.
Could anyone shed more light on whether it's a good idea to buy at 61 with the expectation of getting 66? Also, when would that 66 per share be paid? Weeks? Months?
I don't have any commissions through the DRIP, but you make a great point about waiting for a level that never comes, then regretting not buying after the sector/stock has turned. POT has also intrigued me for a long time, but I haven't followed why it keeps trending lower.
I currently have about $550 worth of COP in a DRIP (about 12 shares), average is about $60 per share. I started it this past Spring. I'm thinking this recent collapse in price could be a good long-term buying opportunity, but am looking for some constructive feedback. With this few shares, my purchases will continue to lower my average cost. On the other hand, I'm thinking we could be in for further declines if the overall market heads down. So I was thinking about doing nothing for about 6 weeks before adding any more. Thoughts?
Agreed, I look at any appreciation as bonus. If it stays relatively flat, but pays a consistent dividend, then I'm happy.
Thanks for the info and suggestions. I appreciate the reply. It's great to find good conversation here, when so much spam and irrational hysterics often clutter the message boards.
Your welcome. These message boards could be very useful if people would have reasonable conversations instead of the often hysterical, irrational posts about stocks. I want to learn more about BHP (and some other stocks). When people post nonsensical and irrational claims about companies/stocks, it helps no one.
Obviously, the commodity declines and China slowdown are bringing this down. I'm thinking more pain could be ahead if we ever get any kind of broad market pullback. While BHP has been falling, the broad market has been holding fairly well. So, if the market as a whole drops, I would think BHP would be dragged down with it. I've been considering open a small position in BHP for a while but have not done it yet. I'm not sure what a good entry point would be.
I look at SO more from a safety standpoint. Obviously no stock is 100% safe. I started buying around $43 a couple years ago and saw it rise up to 50+ with all the other utilities. It has since fallen about 23% from it's high, which seems like a big drop for a supposedly safe utility. However, as it rode up to 52-53, I remember thinking that it was too fast and too far. Since then, my paper profit has vanished. On some recent days when the market plunged, SO was flat or even a little up. So, I look at SO more from the dividend perspective, rather than a capital appreciation perspective. I look at any appreciation as a nice bonus and hope to keep reinvesting dividends.
I'm a recent investor to COP. I started a DRIP program with them and have about $500 invested so far. I know that's peanuts compared to what some have in COP. I'm planning to keep buying regularly and dollar cost average down. While the recent slide in the stock price is connected to the price of oil/supply, I'm thinking that if we ever get an actual market correction, COP would likely fall further. Thoughts?
If commodity prices are at a 12 year low, and oil has come down to $50, what has COP done wrong? They've maintained the dividend so far, and have publicly stated that the dividend is a priority.
Looks like I missed the entry point. When I made my original post, it was about 43. Of course, I did nothing, and now it's at 47.72 as I post this.
Thanks for your thoughts and summary--I was wondering if anyone would ever reply. I'm very tempted. There has to be a correction at some point. But I've been thinking that for a year or two and it just hasn't happened.
With BHP near its 52 week low and a sizable dividend, does this look like a good entry point for a small position? Perhaps to begin averaging in. One concern I have is that if we do get some sort of overdue correction, this will go down with it. I have not held BHP before, but am interested in developing a position at some point. Any thoughts?
I'm thinking something similar. I'm not sure if it's a great discount or not as I'm not qualified to make that analysis. However, a 15% decline in 2 weeks seems like a spot to add more if you are a long-term holder. When SO was at 50, 51, 52, it seemed too far, too fast. I was happy to see it go up, but it seemed irrationally high. Now SO has sunk like the rest of the sector in the face of rising interest rates. I know that SO has some company-specific issues (cost overrun on the new plant) but I'm not sure how much that has had to do with the recent decline. I see no harm in adding here if you're in the DRIP for the long term.
I like your enthusiasm. I had a position in T. Rowe Price's New Era Fund (natural resources/energy). I made the mistake of not taking profits late in the year. I learned my lesson to take some profits when ahead in a cyclical name/sector. Instead I sold at a break-even point when energy started to crumble in order to avoid a taxable capital gain distribution.
Two more thoughts: Are there any difference in factors that affect COP vs XOM? (natural gas prices?) I'm going to go with COP, but was wondering what you think of XOM in comparison.
Thanks for your thoughts. I keep thinking that the overall market is very overdue for some kind of a correction that will bring almost everything down 10%. It seems like we get a shallow 3 or 4 percent drop that includes a couple 200 point drops in the Dow (which isn't that much in percentage terms anymore). Then there's headlines like "Stocks Plunge!!" and the Fed or ECB quickly makes a statement to save the day and the market shoots up 300, preventing any correction.
COP's dividend yield intrigues me as a choice for a long term DRIP holding.