BP and XOM?
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- Ad Orientem
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BP and XOM?
I'm starting to think about a little bargain hunting. Both of these have been battered and have dividends above 8%. Thoughts?
Re: BP and XOM?
There's definite mean reversion coming at some point to the oil companies. They have been beaten down for so long now. The blood is really in the streets this week in particular. I mean the news can't get much worse for the oil market than it has been recently. And with an 8% dividend, if you're willing to wait it out if it does continue to trend down, it sounds like a good long term value play to me.
- Ad Orientem
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Re: BP and XOM?
XOM closed at $41.98... down from $83.48 (52 week high). Current dividend 8.29%
BP closed at $24.66... down from $45.38 (52 week high). Current dividend 10.22%
BP closed at $24.66... down from $45.38 (52 week high). Current dividend 10.22%
- mathjak107
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Re: BP and XOM?
Oil is dead in the long term .....this is like film was to Kodak .
Technology finds more and more ways to increase the already abundant supply as each year demand falls off from alternative sources and technology improving efficiency....throw in natural gas is at an all time high and oils future is dim.
Technology finds more and more ways to increase the already abundant supply as each year demand falls off from alternative sources and technology improving efficiency....throw in natural gas is at an all time high and oils future is dim.
- Ad Orientem
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Re: BP and XOM?
mathjak107 wrote: ↑Wed Mar 11, 2020 5:48 pmOil is dead in the long term .....this is like film was to Kodak .
Technology finds more and more ways to increase the already abundant supply as each year demand falls off from alternative sources and technology improving efficiency....throw in natural gas is at an all time high and oils future is dim.
Both of these companies have been diversifying their activities for years. While it remains a major component of their operations I think both have long realized that the curve of history is bending against oil and they have been moving on.
- mathjak107
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Re: BP and XOM?
Meh , I just can’t get excited about oil companies anymore ......I would trade cvx but nothing I would bother buying as a long term hold , but that’s my opinion
Re: BP and XOM?
<Paging MediumTex to resurrect the "Overshoot" thread>
- dualstow
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Re: BP and XOM?
There is a lot of pressure on companies like Exxon to maintain their dividend. And yet, I don't know if that kind of dividend is sustainable.Ad Orientem wrote: ↑Wed Mar 11, 2020 5:26 pmXOM closed at $41.98... down from $83.48 (52 week high). Current dividend 8.29%
BP closed at $24.66... down from $45.38 (52 week high). Current dividend 10.22%
I'm a long time Chevron shareholder and I nibbled a little recently, but my heart is not in oil companies. It feels somewhat like getting into tobacco companies in 2020.
Sam Bankman-Fried sentenced to 25 years
- vnatale
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Re: BP and XOM?
What happened to "Peak Oil"??!!!mathjak107 wrote: ↑Wed Mar 11, 2020 5:48 pmOil is dead in the long term .....this is like film was to Kodak .
Technology finds more and more ways to increase the already abundant supply as each year demand falls off from alternative sources and technology improving efficiency....throw in natural gas is at an all time high and oils future is dim.
VInny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
Re: BP and XOM?
Oil is not going anywhere anytime soon. Like every other commodity it goes through it's phases. Currently, it's out of favor, but eventually prices will go back up, and so will the companies.
- mathjak107
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Re: BP and XOM?
it has been 15 years and oil company returns have gone from bad to worse . just look at the 15 year return for xom ... 1.43% oxy 1.36% cvx who i think is the best of the lot 5.75% .... s&p 500 almost 8%
i would sooner invest in the s&p 500. i don't see the point in taking on both market risk and individual company risk in this sector unless it was a short term speculation .
i would sooner invest in the s&p 500. i don't see the point in taking on both market risk and individual company risk in this sector unless it was a short term speculation .
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Re: BP and XOM?
Maybe ocho knows more about this, but AFAIK peak oil is... "happening." Oil fields like Ghawar (Saudi Arabia) produce less oil now that the easily recoverable oil is gone. EROEI has been going down for a while. Without fracking and tar sands (what I think mathjak is referring to as "technology") production would be down worldwide. Fracking and the tar sands are resource intensive, and I've seen quite a bit of commentary suggesting that without low interest rate loans they wouldn't be in business. *shrug*vnatale wrote: ↑Wed Mar 11, 2020 7:12 pmWhat happened to "Peak Oil"??!!!mathjak107 wrote: ↑Wed Mar 11, 2020 5:48 pmOil is dead in the long term .....this is like film was to Kodak .
Technology finds more and more ways to increase the already abundant supply as each year demand falls off from alternative sources and technology improving efficiency....throw in natural gas is at an all time high and oils future is dim.
VInny
You there, Ephialtes. May you live forever.
Re: BP and XOM?
BPY or BPYU are getting very interesting as of late.