Thread regarding Occidental Petroleum Corp. layoffs

Sell, sell, sell!

Unfortunately there could be many failures, first among those might be Occidental (OXY) which paid a huge amount – $55 billion – for Anadarko Petroleum, a decent, not great producer. Occidental is now worth $15 billion largely because it will have a very hard time paying debt and drilling or even taking oil out of the ground. Braziel's work shows that Occidental has a $33 per barrel finding and development cost and a $34 a barrel lifting cost (production costs and production taxes/production), making it the third worse of 37 producers in the U.S. with the others obvious candidates for bankruptcy. So that 18% dividend is not safe, especially because Oxy borrowed $10 billion from Berkshire Hathaway (BRK.A) (BRK.B) and it's a preferred, meaning it has higher standing than the common stock. Do not buy it for that yield and, please, remember, I begged this company's CEO not to buy Anadarko. Oh well.

https://realmoney.thestreet.com/jim-cramer/jim-cramer-once-again-oil-stocks-time-has-come-and-gone-15261187

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| 2571 views | | 5 replies (last March 11, 2020) | Reply
Post ID: @OP+13VXXYMJ

5 replies (most recent on top)

This is why you should always limit the number of company shares you hold in a company's 401K plan. When my shares get to a certain amount exchange to another fund.

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Post ID: @mpn+13VXXYMJ

The previous was a facetious comment.

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Post ID: @vea+13VXXYMJ

At least the share certificates will make good toilet paper.

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Post ID: @cuh+13VXXYMJ

Don't worry, the dividend % will go up as the stock price goes down.

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Post ID: @taq+13VXXYMJ

The dividend has been cut to 11 cents. No longer 18% at current stock price. Get current with the news.

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Post ID: @zfo+13VXXYMJ

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