Chevron will probably go back to $100/share.
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Depends on how you value stock. Oil companies typically trade based on a multiple of earnings. With negative earnings, the typical measure of price to earnings ratio is non-sensical. So you have to price the company like it is a utility, and look at dividend yield. Our dividend yield of 10% is nonsense, because we have not made enough free cash to cover dividend payments FOR THE PAST 8 YEARS!!! So our dividend yield is too high. Our stock trends with the price of oil, so if oil goes up 25% to the 50/barrel range, then we should see some uplift in a share price that will be discounted by our too high dividend yield. How likely is oil price to increase? It will take a year for the vaccine to impact immunity rates, and then OPEC + can easily turn off their current curtailment to the tune of 8 million barrels per day. So bottom line - be prepared to live in a share price between $40 to $50 for the next several years.
I agree that the oil industry is undercapitalized right now but man you’ve gotta take Peter Schiff with a spoonful of salt. The guy’s a goldbug who’s been screaming about hyperinflation since time before Jesus.
Listen to the Peter Schiff Show Podcast. Energy (oil) is one of the few deeply undervalued paper assets you can own right now. Lagging to say the least.
Chevron has the support of Wall Street and said the magic words the other day “lower carbon”. XOM is starting to die right before our eyes.
It's $42 today, only another 20% needed to get to $50. Will be interesting to see how results of ongoing Brazil drilling (2.5 million of high risk expensive acres) will correlate with stock price.
Maybe. Or maybe not. Hope that helps.
By end of 2021, XOM stock at $70. I have good track record of stock predictions. I am heavily invested in Tesla and Amazon. But I am confident that XOM with plastics, chemicals, petrochemicals in their portfolio in addition to crude and refining is well diversified and will do well.
Golly, I sure hope so.
I'm down 100K since last Xmas in 401K.
Keeping that 'Woods 2025' sign in the front yard till it makes 50.
Thanks, OP, for the confidence.
Peak oil doesn't mean not making money.
No, its f—ed. Peak oil is behind us.
If anybody really knew, they wouldn’t be posting on this site. Typically, people say the stock price is forward looking and all known information is contained in the price.