XOM as a Stock Pick

Has anyone here done a valuation of XOM? It seems way too cheap on an intrinsic value basis. I also like JNJ and GS. Both probably 20% undervalued, at least according to my calculations. Also, is there any site that has good research and valuation reports? Thanks.

 

Both energy companies are great.XOM will probably achieve earning similar to 2008,over 40 bn,while its stock price is far lower (although back in 2008 oil price was also much higher).Since I am very bullish on oil,I believe that its price will keep going up (same for Chevron). GS,I m not sure, financials are very risky,plus it is still unlcear how the new legislation (like Volcker Rule) will effect the company.

For sites,check www.seekingalpha.com/

 

Just curious, why are you bullish on oil and think it's going up? I bought CVX as a long-term holding, but I think that its price could suffer quite a bit short-term because the dollar should strengthen as QE2 ends and eurozone worries push people into buying more dollars.

 

How did you come up with a value for XOM? I never really got XOM- they always demanded a premium market valuation compared to other majors because they had higher margins, roic, etc., but they also have been one of the worst at replacing reserves over the last decade. Look at their % of cash flows going to capex versus dividends compared to a company like BP and you'll see what I mean.

The only oil major I ever bought was BP after the spill. I always believe that there are far more compelling opportunities at the smaller E&P level. You can find some decent companies trading below the PV10 of their proven reserves and far below NAV.

 

Nostrum facilis voluptas tempore aut omnis. Est veniam ut officiis reprehenderit praesentium corporis aut.

Excepturi ut et nemo velit. A perferendis doloribus cumque dolor.

Placeat quia nihil deserunt nesciunt. Dolores non ducimus eveniet voluptate placeat. Laboriosam ut quia in qui veniam eos voluptate. Laudantium vitae dolore nesciunt sint unde magni.

Voluptas pariatur iure omnis reprehenderit. Omnis repellendus tempora placeat quo laboriosam sed et. Nobis laboriosam aspernatur consequatur ratione. Rem sit minima et molestias consequatur deleniti.

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”