BaylorSpineGuy said:
Agree with the general sentiment but both XOM and CVX missed their EPS recently with prices at near ATH's.
This suggests that it's not purely a cost of gas issue to me.
Cant' speak to CVX, but I should since I own it. .... As for XOM, this last quarter was a kitchen sink quarter. They didn't miss, under normal circumstances they would have reported $3.24 to $3.40, but they suppressed earnings with everything they could throw in the sink PLUS a $5 billion loss in "hedging" and a 40% tax rate versus 28% last quarter and the divesture of the Russian deal. A $5 billion hedge loss can generally tank a company, let that sink in. All I can say is, next quarter (maybe the next 3 quarters) will be a blowout. XOM has $11 billion in cash, tripled their stock buyback to $30 billion. Further, these guys have to self finance, because the current Administration doesn't like Big Oils carbon footprint and told Big Banks to not loan to Big Oil. Since Big Banks won't loan money to Big Oil, Big Oil is going to show this Administration that this country still runs on fossil fuels. I want $10 per gallon gas, LFG! By the time 2Q results are announced in August, Congress will be on vacation in July, and returning in August only to focus on Mid-Term re-election. Congress will not be focused on a Big Oil Windfall Tax. XOM will report big numbers in 2Q and Wall Street will cheer with a muffled roar. XOM has nothing left to offset big numbers unless they plan another Russian, or like country, write-off. I am very proud of the restraint Big Oil has used to combat the attack this Administration is waging against them. Now,...if agriculture could only follow this example..
ETA 10:19pm: Analysts are hesitant to upgrade this stock....I'm not kidding. What a laugher. That's real political fear.