Exxon/Mobil under fire!

[aja8888]

Looks like the climate change folks are lining up to try to suck funds out of Exxon/Mobil for covering over potential climate change issues with fossil fuel uses:

Exxon Mobil (XOM) Stock Slides on Climate Change Investigation - TheStreet

Attorney General Eric Schneiderman subpoenaed the energy company on Wednesday for financial records, emails and other documents, sources told the New York Times.

The attorney general will look into the company's actions as far back as the late 1970's, during which Exxon Mobil spent at least a decade funding groups that undermined climate science, according to the Times.

This sounds like the witch hunt of old when all the tobacco companies were under fire, and we know where that went.

Anybody have XOM as a long term (or even short term) holding?

What's your plan if you do?

 

[travelover]

...........This sounds like the witch hunt of old when all the tobacco companies were under fire, and we know where that went. ..........

As I recall, the tobacco folks were lying their azzes off and a lot of people died as a result.

 

[aja8888]

As I recall, the tobacco folks were lying their azzes off and a lot of people died as a result.

And of course, they paid for it.

What I am asking is stock performance related. You know, the crystal ball stuff and what folks plan to do (if anything).

 

[W2R]

I don't personally invest in individual stocks, but as an aside I noticed that Exxon-Mobil is the 6th largest stock holding of Wellesley (VWIAX). If Wellington Management thinks it's THAT good, that's a pretty good testimonial as to their faith in Exxon Mobil.

 

[travelover]

And of course, they paid for it.

What I am asking is stock performance related. You know, the crystal ball stuff and what folks plan to do (if anything).

Gotcha, my point was that the tobacco inquiry was not a witch hunt, which is where innocents are vilified.

Proceed.

 

[Rosie]

DH inherited XOM shares from his father. We weren't comfortable owning so much stock in a single company. So we sold it all off, and, thanks to the stepped-up basis for inherited stock, we owe very little in cap gains tax. We invested the proceeds in ETFs, much more our speed.

We didn't abandon XOM entirely; it's currently the second-largest holding in one of our ETFs, VYM (Vanguard High Dividend Yield).

 

[aja8888]

I may be premature with my thoughts, but..

It's my opinion that wall street will take the stock down based on the bad news (although the accusations are going to be challenged by XOM). What will ensure will probably be several years of court date maneuvering and tons of cash spent on legal fees before anything actually goes to court.

There may be other states jumping into the pending circus that could develop.

 

[harley]

I own XOM in my gambling (individual stocks) account, so it's a small part of my overall net worth. I'll keep holding it, especially based on the example given of the tobacco companies. I've owned Philip Morris (now Altria and PM) since the early 90s, and made a ton on the dividends, as well as it being a 20 bagger or so cost-wise. I hope XOM comes out of this as poorly.

 

[Theseus]

Anybody have XOM as a long term (or even short term) holding?

What's your plan if you do?

I don't now, but have used it as an occasional short term play. Having just changed the oil in two of my vehicles yesterday taking 9 quarts each, both of which are of European ancestry and enjoy having Mobil1 synth as about the only viable and readily available engine oil, I'll say they are pretty safe. With 1986-2014 US sales of 581,821 units (~40% of worldwide sales), estimated 70% still on the road, changing oil only once per year--most likely more frequent--that is $19.4MM in sales just in the US, for just one make of a relatively low volume vehicle. Between rest of the automotive market, rest of the world, and industrial market for lubricants; they will have sales volume going forward.

"Scandals" of all sorts are alleged every day, and hell, even if they are fully guilty, it would probably get lost in the noise of all the other breaking "news" of even more scandals.

 

[Texas Proud]

My mom has a good amount of this stock.... her largest single holding... she will do nothing as her potential cap gains are so big....


I bought a position a month or two ago... oil has been driven down to a point where I am putting some of my play money there and hope it goes up.... I will be reinvesting dividends, so for me I can live with it being down a bit for awhile.... I suspect that this will go nowhere...

 

[Whisper66]

Have some individual Exxon stock and have no plans to sell it.

Just another witch hunt in hopes of big lawsuits. Basis assumes global warming is (1) a fact (2) driven by fossil fuel use and (3) Exxon as a corporation agreed with some of their employees belief in this. Doubt any one of those three could pass a solid legal challenge. So not concerned with the upcoming grand standing.


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[redduck]

I own Exxon in the dividend stock portion of my portfolio. I don't imagine proving that fossil fuels are changing the climate (or how much they are to blame regarding changing the climate) will be easy to prove. I'm guessing by the time this gets to the courts the climate will have changed again and that the lawyers who initiated the lawsuits will, by then, be working for Exxon. Maybe at worst, Exxon will neither admit or deny guilt and be fined an amount that will outrage the public. I'm holding on to Exxon.

 

[alaska55]

The **** are at it again and you wonder why large numbers with money are leaving. NY will do anything for a buck. Exxon has little if any footprint in NY. The big corp in NY are left alone until they start leaving, then watch out. Guess what **** stands for?

 

[Texas Proud]

The **** are at it again and you wonder why large numbers with money are leaving. NY will do anything for a buck. Exxon has little if any footprint in NY. The big corp in NY are left alone until they start leaving, then watch out. Guess what **** stands for?

Problem is that almost all stocks and bonds are issued under NY law.... so they cannot ignore this even if they had zero footprint in NY state....

 

[dirt_dobber]

I'm long on XOM. Very well run Oil Co.
Could be time to add more to my individual stock holdings.

 

[marko]

XOM is held in rather high percentage in one of my MFs. As so often happens, I suspect this will blow over, probably as soon as the next crisis emerges...usually a 2 week window.

As dirt-dob says, might be time to buy.

 

[aja8888]

XOM is held in rather high percentage in one of my MFs. As so often happens, I suspect this will blow over, probably as soon as the next crisis emerges...usually a 2 week window.

As dirt-dob says, might be time to buy.

Maybe if it hits the $70's again as a good re-entry point if you are considering adding more shares.

 

[Senator]

When the Coal industry went under attack, they basically went out of business. If the oil attack is extreme enough, XOM could be gone too.

Some public CA pension funds have divested all companies that produce the the majority of their income from coal. it could happen with oil too. XOM is only the one in the crosshairs now.

It's not a short term issue, but we may have already seen the absolute and all-time high of XOM in 2015.

 

[Mulligan]

Maybe if it hits the $70's again as a good re-entry point if you are considering adding more shares.

Trying to be patient and entering XOM at a discount is completely a frustrating experience. Yes I know they are upstream, downstream and nat gas... But really... They sold for $100 a share when oil was over $100 and now oil is half that, XOM is mid 80s? I don't get it... No deal there, but what do I know...


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[aja8888]

Trying to be patient and entering XOM at a discount is completely a frustrating experience. Yes I know they are upstream, downstream and nat gas... But really... They sold for $100 a share when oil was over $100 and now oil is half that, XOM is mid 80s? I don't get it... No deal there, but what do I know...


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This is one of the reasons I started the thread...is XOM overvalued @ $45 oil in the light of the attack on their credibility with respect to "climate change" (aka,"global warming")?

I'm just looking for our membership points of view as we are all astute investors and intelligent people.

 

[Texas Proud]

Trying to be patient and entering XOM at a discount is completely a frustrating experience. Yes I know they are upstream, downstream and nat gas... But really... They sold for $100 a share when oil was over $100 and now oil is half that, XOM is mid 80s? I don't get it... No deal there, but what do I know...


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Since they make a lot of their money from other activities, their profits are not in trouble as you might think....


Also, they live on a margin.... IOW, they do not 'own' the oil.... they have to pay someone for the oil... that is a cost of goods.... so that cost went down when oil went down... their margin on refined products might be squeezed some, but not the 50% of the drop in oil...

I am not concerned that XOM is going out of business in my lifetime... right now there is NOTHING that can replace oil at a kind of cost effective manner... and there is nothing that I can see that is proposed to do so either.... nope, oil will be king for many decades (heck, maybe a century or two)....

Now I know that some black swan can be discovered... heck, maybe cold fusion will be proven and it can be made cheaply.... still, it that happens, converting to that will take time.... so, if that happens, I will sell XOM.... then again, maybe they will discover it....

 

[Mulligan]

This is one of the reasons I started the thread...is XOM overvalued @ $45 oil in the light of the attack on their credibility with respect to "climate change" (aka,"global warming")?



I'm just looking for our membership points of view as we are all astute investors and intelligent people.

Im gonna ignore your last sentence as it would disqualify me from posting. So.... I am wondering this...Is the price being unduly supported too much by its "pristine balance sheet" and people still wanting to be in energy, but "safe energy"? It just seems to me it should be trading at least where you suggested it at in lower 70s.


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[aja8888]

Im gonna ignore your last sentence as it would disqualify me from posting. So.... I am wondering this...Is the price being unduly supported too much by its "pristine balance sheet" and people still wanting to be in energy, but "safe energy"? It just seems to me it should be trading at least where you suggested it at in lower 70s.


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I believe XOM got as low as 68 when the market went down early Fall. I picked some up at $72 and would like to add to that. Besides having a few preferreds that you swayed me to buy , I have a few oils in my play money dividend portfolio.

 

[Winemaker]

I hope they call everyone of us old geezers on this forum as an expert witness in this suit. Digital thermometers were invented in the late 70's, and we all remember the analog thermometers that were marked in 2 degree increments, and depended on the observer's height to get a reading. And all this "climate change" is based on a 1 degree rise in temperature over the past 140 years.

I'm long XOM and will buy more on the dips.

 

[Mulligan]

I hope they call everyone of us old geezers on this forum as an expert witness in this suit. Digital thermometers were invented in the late 70's, and we all remember the analog thermometers that were marked in 2 degree increments, and depended on the observer's height to get a reading. And all this "climate change" is based on a 1 degree rise in temperature over the past 140 years.

I'm long XOM and will buy more on the dips.

I have no problem with climate change concept. But the man made I still don't get. We had an ice age right over where I lived. And oil is being pumped oil out of Middle East desert. Something lived there a long time ago or oil wouldn't be there. I can safely assume we didn't cause that desert to show up.
But then again I still use my "flat earth" maps.
I want to get in with XOM again, but in upper 60s. Which means I probably will never get invited to the annual shareholders meeting.


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