Exxon Mobil Corp. (XOM)
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XOM Forum Topics
- All Comments on XOM
- General Discussion on XOM
- 95 Stocks with Low Debt to Equity [view article]
- Oil Industry: Farewell, Good Old Days [view article]
- Hunting Season in Blue Chip Territory [view article]
- Paulson Finally Doing the Right Thing [view article]
- Comparing This Past Week to the '87 Crash [view article]
- Exxon Mobil Appears at Lower End of Valuation Range [view article]
- Bargain Buys For Patient Investors - Barron's [view article]
- Trying to Catch a Falling Dollar [view article]
- Stop the Week, We Want to Get Off [view article]
- Ten Texas Stocks [view article]
- Energy, Inflation and Gold [view article]
- Options Trader: Thursday Outlook - How Much More Disappointment Can We Stand? [view article]
loading ...Recent XOM Articles
- Paulson Finally Doing the Right Thing
- 95 Stocks with Low Debt to Equity
- Comparing This Past Week to the '87 Crash
- Exxon Mobil Appears at Lower End of Valuation Range
- Oil Industry: Farewell, Good Old Days
- Bargain Buys For Patient Investors - Barron's
- Hunting Season in Blue Chip Territory
- Stop the Week, We Want to Get Off
- Ten Texas Stocks
- Trying to Catch a Falling Dollar
- Full List of Articles »
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95 Stocks with Low Debt to Equity [view article]
Great post, Bill. Well thought out and refreshingly rational. ReplyOil Industry: Farewell, Good Old Days [view article]
Try $43 billion in annual profit Mr Snyder -after all expenses and depreciation. That is more than enough PROFIT in one year to buy Goldman Sachs or Boeing or Eli Lilly or Occidental Petroleum just to name a few. XOM is by far the biggest, most profitable and financially strongest company in the world. And they sell a product that is a necessity and they sell it for cold hard cash. I would certainly rather own XOM shares for the next 20 years rather than depreciating "ultrsafe" US Treasuries. ReplyHunting Season in Blue Chip Territory [view article]
Some good advice. No need to be in a rush trying to pick the bottom. There is plenty of time to wait and search for bargains. Search now, buy later. You won't miss out on much.Also, be aware of how the Dow 30 Enhanced Premium & Income Fund (DPO) operates before you buy it. It isn't as straightforward as you might imagine.
To quote from the initial offering prospectus:
" Under normal circumstances, the Fund will purchase all of the thirty
common stocks included in the Dow Jones Industrial AverageSM
(“DJIASM Index”), weighted in approximately the same proportions as
in the DJIASM Index (the “Dow Stocks”). The Fund will also purchase
other securities or financial instruments,
primarily SWAP CONTRACTS,
designed to provide additional investment exposure (i.e., leverage) to
the return of the Dow Stocks (the “Additional Dow Exposure”). The
Dow Stocks and the Additional Dow Exposure collectively are referred
to herein as the “Total Dow Exposure.” The Fund also will engage in
certain option strategies, primarily consisting of writing (selling)
covered call options on some or all of the Dow Stocks (the “Options”)."
So a quick summary: the fund buys stocks and SWAP CONTRACTS (purchased OTC like the ones currently sinking the big banks) and then write call options against these positions for income.
Bottom line: DPO will have huge exposure to counterparty risk on the other side of those SWAP CONTRACTS. Keep that in mind. Doesn't mean it won't work just fine, but then again it may have problems.
Let the Buyer beware. Reply
Paulson Finally Doing the Right Thing [view article]
Investing in those companies won't solve the real problem. The credit default swaps and all that other exotic garbage are the issue.The SEC should declare them illegal products and the head of the
SEC should resign.
The Treasure should buy up all that junk at 5-7cents to the dollar.
Presto. Trust comes back. Banks start to function. Things will get better.
Reply
Paulson Finally Doing the Right Thing [view article]
Oh! Since you are offering quotes... Here are a couple...-Prosperity is just around the corner... (Herbert Hoover, 1932)
-Faced by failure of credit, they have proposed only the lending of more money. (FDR, 1933)
Reply
Paulson Finally Doing the Right Thing [view article]
I don't think there's many people who would agree with that...Paulson is still running behind the curve and offering solutions for month or two month ago problems. The snowball is getting larger and larger, Paulson and Bush are running behind it, huffing and puffing.
If Paulson and Bush ever do get in front of it, the snowball will be so large it will plow them both under. They offer yesterday's solutions. Reply
Comparing This Past Week to the '87 Crash [view article]
The DJIA regained its post crash high on 1/26/1989, 322 trading days since the crash. On 3/29/1889, the 2274 By 3/10/1993, the DJIA visited double the 1738.74 trough for the first time. By June of 1993, the DJIA had established this level of 3478 as a floor, not to be seen again.By 2/6/1996 the DJIA was a double, 5445 from the 2722.42, 1987 peak
We have now lost 39% in 254 days.
254 days versus 39 days, quite a difference.
But with all the stimulation pumped into the economy, it is hard to beleive when the economy starts working, the response won't be fast and furious.
I regret doing this analysis using the DJIA, but it seemed to best address this post. The DJIA, the most poplular average IMO should be relegated to an arcane position for multiple reasons. 1) Small number of stocks 2) Manipulated by periodic changes of divisors 3) Stocks added and deleted 4) Price weighted rather than market cap weighted. Reply
Oil Industry: Farewell, Good Old Days [view article]
Companies like XOM have the cash to purchase assets on a cheaper basis than what the pricing was in the last year. XOM has been stubborn in its belief that oil and gas pricing was too high for price sustainability nand therefore refused to pay the asking prices of 100 dollar barrel oil for proved and probable assets.How long the respite in pricing I simply don't know. But the CHK's of the world are increasingly vulnerable to takeover at a less than desireable price than just 6 months ago.
OPEC's historical power has not to be able to maintain high pricing but to rather the ability to drag low pricing off the floor.But only after 18 to 24 months of wrangling amongst its members.
the early predictions of the Exxon's, the Chevron's and the Total's of the world going the way of the Dodo hyave been pre-mature at best and wholly inaccurate at its worst.
In an age of lower pricing and tight credit who but the well heeled can sit and wait and self fund purchases of assets. Reply
Oil Industry: Farewell, Good Old Days [view article]
Don't ignore the comments above: They're not idiotic as atavista says. It's a boom and bust commodity industry, always has been and always will be. Natural gas is different. The author talks about Pennsylvania, which is likely natural gas leases that people are paying a lot of money for and then he goes on to talk about the price of oil. Need to keep the two separate. We'll bounce around for a while on prices and then slowly start creeping back up, then go into a hard run up, then of course, another fall. Make sure the companies you buy at this time have good balance sheets and low debt. I know for a fact that they see this as a buying opportunity. ReplyOil Industry: Farewell, Good Old Days [view article]
Ignore the idiocy of the blowhards above and pay attention ot Mr. Snyder's comments. ReplyExxon Mobil Appears at Lower End of Valuation Range [view article]
Let's forget about the numbers for a moment and think about investor sentiment since this market is driven by fear.Exxon Mobil is by far the largest, most profitable and most financially strong company in the world. In the middle of a huge credit crisis, every company that relies on borrowed money (especially short term credit like commercial paper) or sells to consumers on credit (autos, housing etc) is justifiably getting crushed. But why is XOM getting punished? They don't need to borrow a dime to keep going. As a matter of fact they can invest in their business and have enough free cash flow to buy back $30 billion a year of stock and pay another $8 billion in dividends (rough numbers -I haven't checked carefylly). The knock against them is they are not growing fast. But they could show tremendous growth if they didn't care about return on capital. Remember that BP and RDS grew faster but then had to take huge writedowns which XOMs never has done. Then there is the fact that oil is a cash business. GM can "sell" a lot of cars by giving them away with no money down and zero percent financing for five years. But if you want oil you pay cash. XOM does not finance any of its customers.
Finally, there is a knee jerk reaction to sell commodities and cyclicals and buy staples. But has anybody stopped to think that oil and gas are a necessity not a luxury? And that oil is the only commodity that is neither renewable or recyclable? And that depletion is a relentless fact of life...We need to discover 4 or 5 MMB/D
every year just to keep production from falling.
Given all these facts, and that the government is borrowing trillions of dollars and debasing the currency to stave off financial collapse, would you seek safety in U.S. treasuries like all the lemmings or in XOM shares? Reply
Comparing This Past Week to the '87 Crash [view article]
Instead of focussing on the single week losses, investors should focus on the third column. Only GM is a long-term loser. ReplyOil Industry: Farewell, Good Old Days [view article]
I concur completely with Sponger. We are totally dependent on hydrocarbon fuels in the years ahead. Alternatives, such as electricity, hydrogen, or bio-fuels, have infrastructure and technical problems to be overcome. You can include political problems as well. Replysullivan
Bargain Buys For Patient Investors - Barron's [view article]
I am concerned about the safety of financial preferred stock, particularly Royal bank of scotland and would like some suggestions ReplyComparing This Past Week to the '87 Crash [view article]
Perhaps some of the $400 billion has already been put to work via options, margin, etc. Reply