Shareholder here not an employee ...
In 2023-24, XOM will have 340K bbl/day of the lowest cost non-OPEC oil flowing in right when the world is recovering from COVID.
And yet the stock keeps collapsing, am I am the mo–n who can’t see the obvious? What am I missing?
D: @OP+17hnZWds Good luck. You will need it owning this..
@yxn+17hnZWds At least they have a CEO present. Darren seems to have disappeared since Covid hit us.. that is leadership at its finest
We don’t too.
Because the people in charge of the dividend decision make bank from it. After years of stock awards, for some, it’s more than their salaries.
I'm not interested in the psychological or emotional arguments about the dividend either way. I'm more concerned about effective capital allocation and handling of a very difficult time for the O&G industry. I would say on those fronts the c-suite and board has failed and the market value of XOM has been punished by the market as it should. Nor do I care about the job of some some executive, they are just an employee for this company, and the future prosperity of the company outweighs even their continued employment as a bureaucrat who does not provide some irreplaceable vision for the company.
Invest now and maybe you'll get TLSA like returns in the near future, or maybe you'll be flat, or maybe you'll lose a lot of money. No one knows the future despite what they like to imply with their bs. Hopefully you're diversified with other companies, sectors, and geographies so it really doesn't matter because someone is always losing while someone else is always winning.
No CEO wants to cut dividend as they dont want their job
So this company is about to post it's third consecutive quarterly loss, yet it is continuing to pay a ~10% annualized dividend yield. In what world would you feel comfortable with this as an investment? If you had rental properties that were vacant for three quarters and being handled by a management company, but the management company continued to send you a check with the same amount of profit as when the units were occupied and cashflow positive would you not think something was "wrong?"
Here we are with a historically low cost of money and instead of getting some of that "cheap" money and investing it in something with an expected positive future return for the company/shareholders, management is turning around and giving it to shareholders as though it was positive cash flow. Effectively putting a known negative return on this money for a very short-sighted reason... doesn't look good for this company's future imo. Fiscal irresponsibility at the highest level.
Somebody has a better crystal ball than most?
You are missing that this is just the company's projection of the future. In no way is this a guarantee regardless of how management presents it... presenting things in the most optimistic way possible is a main part of their role.
Cash has been a far better investment than ExxonMobil over the last 10 years. That’s a long time. Don’t let wishful thinking cloud clear-headed judgement. Your family’s financial future is at stake.
Just give us time. Our management with fukc that up. :-)