1). Will the shareholders try to remove Vicki and the EC for the destruction of wealth?
2). What percent of the company will get laid off, and how soon do you think it will happen?
3). Will the stock go to zero?
3 replies (most recent on top)
I am not going to get personal, but we never needed Anadarko for the price we paid. I believed in our leaders and was going to stand behind them to see this through. After today I think we need a change at the top. I invested in Oxy not for a quick gain, but for the dividend and future income for retirement. With the .79 dividend I was going to pull in about 20k with my investment. Now that is going to be more like 3k, and a huge hit to my retirement lifestyle. I had planned on dividend stocks and social security to go into the golden age. My friends growing up had parents and grandparents do just that with Exxon stock. I know have a large investment I can’t sale without a huge lose, so I will hold it and get out when I can. The .11 dividend is not a reason to stay with the stock, so it is just another stock that is hurting now. So that is from a personal side of things. It is tough, but I made the decision to buy so much so that is on me.
On the business side we lost value and the dividend because of the Anadarko purchase from what i can see.
- Overpaid for Anadarko and gave away a billion dollars for that right. That billion dollars could have paid many a dividend.
- Paid many a VSP and layoff packages that cost hundreds their jobs, and we still ended up here.
- Paid Anadarko EC around 300 million in payouts.
- Can’t sale the Algeria assets due to friction between the government and France.
- Paid a tax to the Mozambique government out of the blue from what I can tell.
- Took on a favorable preferred stock program with Buffet.
- Lost many a good employee from both sides.
Again, I am not going to blast the EC, and I think they showed us class by paying the generous bonuses. We can’t blame them for the virus or the oil price war, but the stock has not done anything since August the 9th. I do think Vicky is a class act, and this could have happened to anyone willing to take the chance she did, and I give her credit for having the strength to do it, but to yank the dividend so fast was not right. What if tomorrow oil goes up to 50 again as fast as it went down. I really think she needs to look hard at her financial advisors, or the board needs to give someone else a chance from outside Oxy. Maybe some fresh blood at the top would be a good idea.
The reaction from U.S. producers is what I’m looking at...
Producers are going to be pretty reactive here...
Bigger firms like ExxonMobil have diversified operations that will make it easier for them to weather a storm, but smaller firms may have trouble selling enough oil to keep up with the competition or cover their debts...
At least the bond holders are happy. Dividend of 11 cents? Seriously? Will this dividend be cut? Shareholders get shafted.