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XOM has been trying to kiss March 15 this week.
Posted on 9/28/20 at 12:18 pm
Posted on 9/28/20 at 12:18 pm
Looks like it is way undervalued even with today's boost.
7
Posted on 9/28/20 at 12:39 pm to Auburn1968
XOM below 45 is a deal, below 40 is a freaking steal! I picked up a good chunk of shares last week at 34, wishing I could afford more.
Posted on 9/28/20 at 12:45 pm to Bard
XOM is the next GE
Posted on 9/28/20 at 12:54 pm to Bard
Why is it undervalued and a steal? Where do you see this stock going when they cut their dividend? XOM has taken on a lot of debt lately. They are running out of people to lay off and benefits to cut. I like XOM at $20.
Posted on 9/28/20 at 1:15 pm to 8thyearsenior
quote:
Where do you see this stock going when they cut their dividend?
This is my question. Seems they were taking a risk using borrowed money to keep from cutting their divided with hopes for a quick bounce back in demand this year.
This post was edited on 9/28/20 at 1:16 pm
Posted on 9/28/20 at 1:27 pm to Grits N Shrimp
quote:
XOM is the next GE
It's closer to this than to a $40 steal.
They are leveraged. Not a lot of wiggle room and they are just barely above water at current oil prices.
If demand doesn't drag them up, there will be a lot of unhappy baws around.
Posted on 9/28/20 at 1:43 pm to fjlee90
quote:
They are leveraged. Not a lot of wiggle room and they are just barely above water at current oil prices
Chevron has avoided debt better than anyone, but XOM is close and still far better positioned than BP, Shell, Total, etc.
LINK
Investors have been waiting/wanting XOM to cut the dividend and reinvest in itself, at least temporarily. Long term demand is it's own discussion, but there is no question demand is artificially low due to Covid. Demand will without question rebound significantly, even if not to previous levels.
This post was edited on 9/28/20 at 1:44 pm
Posted on 9/28/20 at 2:14 pm to 8thyearsenior
quote:XOM's debt-to-equity ratio as of 6/30/20 was 37% and you think that's a "lot" of debt? (Remember a lower debt-to-equity ratio means less leveraging.)
XOM has taken on a lot of debt lately.
AAPL's debt-to-equity ratio is 169%. TSLA's debt-to-equity ratio is 136.5%. GM's debt-to-equity ratio is 295%. IBM's debt-to-equity ratio is 337%.
Posted on 9/28/20 at 2:20 pm to LSURussian
Exxon’s issue is cash flow. They’re selling a product that takes them $50 to make at $40. Specifically their oil sands operations Canada are going to be their downfall. As always, blame Canada.
Posted on 9/28/20 at 2:26 pm to 8thyearsenior
quote:
Why is it undervalued and a steal?
I'm looking long-term.
First, Exxon hasn't dug itself into a hole it can't climb out of. Not even close. This becomes important when factored with the second point.
Second, Demand is being held artificially low due to COVID.
The economic framework sections of renegotiating trade deals, cutting bureaucratic red tape hindering the business climate and the passing of favorable tax policies are still in place. CCI, BCI, CLI all bottomed out in May and are bouncing back strongly. Consumer demand is there, it's just a matter of putting COVID hysteria behind us and getting back to business.
I fully expect COVID fears to lessen after the elections and then again once a vaccine is announced. After that people will feel more emboldened to go out more, travel more and spend more.
Posted on 9/28/20 at 3:46 pm to Bard
Can’t wait for all the posters crying here when XOM cuts the dividend
Posted on 9/28/20 at 4:02 pm to LSURussian
quote:
XOM's debt-to-equity ratio as of 6/30/20 was 37% and you think that's a "lot" of debt? (Remember a lower debt-to-equity ratio means less leveraging.) AAPL's debt-to-equity ratio is 169%. TSLA's debt-to-equity ratio is 136.5%. GM's debt-to-equity ratio is 295%. IBM's debt-to-equity ratio is 337%.
The poster said they have “taken on a lot of debt lately”. XOM has significantly increased their debt to equity ratio while mostly maintaining shareholder equity in the past 5 years. XOM debt to equity ratio was under 0.1 5 years ago. Now it’s at 0.31. It’s over tripled over 5 years. That poster was correct
Posted on 9/28/20 at 4:02 pm to LSURussian
So Russian you are a buyer at this point?
Posted on 9/28/20 at 4:05 pm to Upperdecker
quote:
XOM debt to equity ratio was under 0.1 5 years ago. Now it’s at 0.31. It’s over tripled over 5 years. That poster was correct
Part of that is how cheap loans have been. The issue today isn’t being able to produce more; it’s doing it cheaply. If you can’t find oil to produce at less than $30 you are taking a lot of risk. No one would care if the debt ratio was increasing if oil price was at +$60
Posted on 9/28/20 at 4:08 pm to Auburn1968
(no message)
Posted on 9/28/20 at 5:25 pm to tiger perry
XOM is a classic value trap and will likely cut the dividend.
Could be another 20% draw down before it goes up, can you stomach that?
Could be another 20% draw down before it goes up, can you stomach that?
Posted on 9/28/20 at 5:33 pm to dragginass
quote:
Chevron has avoided debt better than anyone, but XOM is close and still far better positioned than BP, Shell, Total, etc.
While I have a little bit of XOM, I have slowly and steadily been accumulating CVX this month. The oil sector is still radioactive to the stock market buyers. Last I checked the sector is down close to 50%. Drilling has practically evaporated and U.S. production is in steep decline. Conditions are sowing the seeds for higher oil prices in the future.
Posted on 9/28/20 at 7:40 pm to CajunTiger92
what is the opportunity cost of investing in O&G now rather than waiting for oil prices to recover? Your money sitting idle in XOM and CVX could be used elsewhere on stocks that are gaining now
even if the bottom is in, you can buy near that bottom in 6 months and not miss anything
even if the bottom is in, you can buy near that bottom in 6 months and not miss anything
Posted on 9/28/20 at 7:48 pm to Auburn1968
I’ve been buying a little bit at a time. It’s slowly turned into a pretty big position (at least for me).
I’m not that aggressive about it. When the share prices dip lower than my current cost basis per share, I make a buy. If it dips sharply after a dividend cut, I’ll make a bigger buy.
Don’t plan on getting rid of it anytime soon.
I’m not that aggressive about it. When the share prices dip lower than my current cost basis per share, I make a buy. If it dips sharply after a dividend cut, I’ll make a bigger buy.
Don’t plan on getting rid of it anytime soon.
This post was edited on 9/28/20 at 7:51 pm
Posted on 9/28/20 at 7:52 pm to CajunTiger92
quote:
Last I checked the sector is down close to 50%. Drilling has practically evaporated and U.S. production is in steep decline. Conditions are sowing the seeds for higher oil prices in the future.
The lead time for petrochemical products production contributes to the bull whip effect that we’ll see when demand climbs. It takes many months to get everything upstream back online.
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