- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
When will XOM recover?
Posted on 2/22/17 at 9:14 pm
Posted on 2/22/17 at 9:14 pm
Historic market highs and XOM continues the downward trend. How much will oil have to be before this stops?
5
Posted on 2/22/17 at 9:16 pm to Ramblin Wreck
It's 52 week high is $95 and it's around $80 now. Is it worth buying? Their dividend is 0.75.
Posted on 2/22/17 at 9:36 pm to Paul Allen
If you a buying for the long haul why would you want it to go up? As long as they keep paying the dividend I would like it to stay at this price for years and reinvest the dividend into cheap shares.
Posted on 2/22/17 at 9:55 pm to bogart
Buy and hold. That dividend isn't going anywhere
Posted on 2/22/17 at 9:57 pm to bogart
They'll probably cut outstanding shares in an effort to boost revenues.
Posted on 2/22/17 at 10:38 pm to Paul Allen
quote:Huh? How does that work?
They'll probably cut outstanding shares in an effort to boost revenues
Posted on 2/22/17 at 10:40 pm to Paul Allen
quote:
When will XOM recover? by Paul Allen
They'll probably cut outstanding shares in an effort to boost revenues.
What????
Posted on 2/22/17 at 10:59 pm to LSURussian
quote:
Huh? How does that work?
I am assuming he means share buybacks. However I believe that is unlikely as they don't have the same cash flow with oil floating around 50. Actually debt has been increasing to keep the current dividends and cap ex.
This isn't their first rodeo and unless you are one of those people that think electric cars are going to quickly decimate the demand for oil. This looks like a good entry point for a company that has been very shareholder friendly that is yielding 3.7%.
I would not be expecting a big bounce back in price until oil starts climbing, and I would expect them not to spend money on buybacks. But they will sell assets and cut costs so when oil does bounce back they will have a strong balance sheet.
Posted on 2/22/17 at 11:30 pm to UltimaParadox
Correct, I mean share buybacks
Posted on 2/23/17 at 2:12 am to Ramblin Wreck
quote:
Historic market highs and XOM continues the downward trend. How much will oil have to be before this stops?
Well XOM just wrote off their oil sands Kearl assert as unprofitable for the next few years. That's not a good sign as they've invested 10s of billions there. I'd say they need to reshuffle their upstream assets big time to get profitable. They've made some really bad bets on Russia and Iraq lately.
Posted on 2/23/17 at 7:09 am to Boh
quote:
Buy and hold.
I inherited some from a great aunt and only sold a portion after it split and we were top heavy in it. I recently heard that it was a "sell" but I can't remember where? Some business channel on tv or radio.
Posted on 2/23/17 at 7:21 am to tiger91
I just sold my positon in Exxon. Oil prices are in a glut and the price keeps dropping. Loved the dividend though
Posted on 2/23/17 at 7:37 am to Ramblin Wreck
I am holding 640 shares from an inheritance. My cost basis is 82.20 a share so I could sell right now and not have to pay any tax. Been thinking about dumping all but about 15K worth and putting into VTSAX.
Posted on 2/23/17 at 8:23 am to tiger perry
quote:
Oil prices are in a glut and the price keeps dropping.
Crude oil prices are UP 35% from one year ago. Posted on 2/23/17 at 8:29 am to LSURussian
Sorry May have gotten the oil price wrong. The stock prices keeps dropping
Posted on 2/23/17 at 9:21 am to Ramblin Wreck
Well, only ~33% of $XOM's business is tied to upstream Oil, so probably a lot. Their big problem, as of late, has been the dramatic rise in gasoline inventories (all time high). Hell, NY harbor is turning away tankers, that's how bad it is. Once these start to drawdown you should see the stock recover, although the Singapore carbon tax will likely have a pretty negative impact since $XOM refines something like 600,000 bpd there (I personally thing this risk is already priced in).
The API data released yesterday suggests the gasoline inventory drawdown has already started, which should bolster investor sentiment.
The API data released yesterday suggests the gasoline inventory drawdown has already started, which should bolster investor sentiment.
Posted on 2/23/17 at 9:54 am to Ramblin Wreck
quote:
Historic market highs and XOM continues the downward trend. How much will oil have to be before this stops?
Commodity business' are generally not strongly correlated to the overall market.
Posted on 2/23/17 at 10:18 am to Paul Allen
wouldn't look for $95 anytime soon. am thinking $76 to $83ish range for the near term - 12 to 18 months.
is a safe, conservative play which suits my style and am holding
is a safe, conservative play which suits my style and am holding
Posted on 2/23/17 at 10:32 am to barry
quote:
Commodity business' are generally not strongly correlated to the overall market.
Exactly. In the US there is actually a negative correlation between commodity prices and the equity markets.
Posted on 2/23/17 at 10:38 am to Paul Allen
quote:
They'll probably cut outstanding shares in an effort to boost revenues
I think you mean Earnings per Share, instead of revenue. Revenue is unaffected by number of shares, but buybacks would increase earnings PER share, as the same revenue is spread over fewer shares.
Unfortunately, they're already borrowing money to continue dividends, despite declining net income. XOM had free cash flow of about ~$9.7B and borrowed another $12.5B to pay dividends last quarter.
Assuming similar revenue going forward, the only way to buyback shares is to borrow more money to do so or take a charge against earnings for the buyback, on top of money they're borrowing to continue dividends.
This post was edited on 2/23/17 at 11:31 am
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News