Welcome to the Hardcore Husky Forums. Folks who are well-known in Cyberland and not that dumb.
Oil's last ride. Buy Exxon Mobil at $40
The Bull has pulled the trigger on a stock that has fallen by 50% since 2015 and peak price for oil.
The selling is over for funds having to get rid of it to replicate the Dow which is kicking it out.
Big picture is oil continues to tick/drip higher little by little and above $40 per barrel, Exxon along with Chevron, Conoco can make money at that price.
Their dividend is 8% and they will borrow/kill cap ex/maneuver monies/etc to protect that at all costs. Why they can't do that forever, again with oil above $40 they can pay the dividend.
The oil crash in March/April took out the appropriate number of mid-majors. I thought there would be more which only helps them, but bottom line is there is less competition for them.
I would call this more of a trade than a long term hold but at some point over the next 12 months, Exxon will get to 46-48. Add in the dividend and your overall will be somewhere between 20-25%