Has anyone looked at the stock price comparison between Chevron and OXY since current CEO of OXY was put in place in April 2016? Chevron stock has significantly out-performed OXY since April 2016. Why would any Anadarko shareholder want under-performing OXY stock and OXY management. OXY CEO seems to be trying to salvage a disappointing legacy.
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Nothing wrong with occidental shares. Not as big of a company as chevron, but still valuable shares with good growth potential.
You people! Put yourself on the selling side. If someone offers you 20% more, you either negotiate a counteroffer from CVX. If they don’t do it, you sell it to the best bidder. If as an investor you don’t like the OXY-APC outcome, take your money after the sale and go buy CVX if that’s your preference.
Agreed if it’s OXY take your recent bump up and get out ASAP before the deal closes, because it will be a steep dive shortly after once traders have time to assess the new balance sheet.
Institutionally investors could care less about down the road operational efficiencies. They want the highest price on s per share basis now. They will sell and take their money and run. It will be after the merger that OXY stock will crash. Investors will be sure not to invest in this hugely levered company. It’s these institutional investors will decide what happens.
The following is a summary of the stock performance under the current OXY leadership which has been in-place since April 2016. During this 3-year period (April 2016 - April 2019), OXY share price has DECREASED 1.5% whereas CHEVRON share price has INCREASED 32.5%. Also, during this period, OXY dividend payment has increased 4% whereas CHEVRON dividend has increased 11.2%. OXY has been essentially dead money. Anadarko shareholders would be poorly compensated by accepting OXY stock and management performance.
OXY Performance:
April 1, 2016: $68.20 /share; Quarterly Dividend: $0.75/share
April 3, 2017: $63.74/share (1-yr CAGR: -6.8 %); Quarterly Dividend: $0.76/share (1.33% increase)
April 2, 2018: $64.67/share (2-yr CAGR: -2.7 %); Quarterly Dividend: $0.77/share (1.32% increase)
April 1, 2019: $67.18/share (3-yr CAGR: -0.5 %); Quarterly Dividend: $0.78/share (1.30% increase)
During the 3-year period:
OXY share has price DECREASED from $68.20 to $67.18 (a decrease of 1.5 %).
The quarterly dividend has increased from $0.75 to $0.78 (an increase of 4%)
CHEVRON Performance:
April 1, 2016: $ 94.26/share; Quarterly Dividend: $1.07/share
April 3, 2017: $107.80/share (1-yr CAGR: +13.5 %); Quarterly Dividend:$1.08/share (0.93% increase)
April 2, 2018: $112.24/share (2-yr CAGR: + 8.7 %); Quarterly Dividend: $1.12/share (3.70% increase)
April 1, 2019: $124.94/share (3-yr CAGR: + 9.4 %); Quarterly Dividend: $1.19/share (6.25% increase)
During the 3-year period:
CHEVRON share has price INCREASED from $94.26 to $124.94 ( an INCREASE of 32.5%).
The quarterly dividend has increased from $1.07 to $1.19 (an increase of 11.2%)
If shareholders and institutional investors vote for Oxy then they deserve what will come to them. Everything has to go perfectly over the next several years for Oxy to succeed if they acquire Anadarko. The debt they have to take on alone should be enough to make everyone vote no. Chevron is the smart choice, even if their offer price is lower.
Excuse my ignorance. Can you explain or define "portfolios" used for this specific topic?
Portfolios will vote for Oxy. Goodnight.
Without researching, I will guess the "less than 500,000 share" figure is accurate. I have less than that and unless it got lost in the mail, was never given the opportunity to vote on any acquisition deal(s).
I wonder if ANY shareholders not on the board of directors did or will get a vote?
If you own less than 500,000 shares of APC then you literally have no idea what you are talking about. Portfolio management for large institutional investors vary wildly than what we do in our tiny brokerage accounts. Just stop.
What do you mean? The shareholders can vote.
Who on APC's side will inevitably decide to make any deal final and binding? I can't imagine shareholders having a say on who to "go for". Maybe "root" for.
Most are attracted to the larger price and I've been told that they can sell immediately. If everyone sells Oxy shares soon after the merger, the price per share goes down quickly. Think long term and go Chevron.
If a shareholder wants off this six ticket carnival ride then a $14.00 difference per APC share might sound pretty good. If they enjoy the ride, I believe Chevron's dividend record is more attractive.
I agree with you.