I've heard that a bunch of my supervisors/managers are all in on XOM stock in their 401ks. Based on the current stock price, it looks like they lost half of their savings so I'm not inclined to follow their footsteps. However, it seems that there are some wise people on this thread that are short the stock. Since we are no longer receiving a 7% match, are we able to use 100% of our 401k to short XOM stock? I would think that allowing us to do that is the least they can do for us since we don't get bonuses and there won't be any raises for a while.
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Diversify? Voya only gives us less than a handful of options in the 401K. Stock, 3 funds, a 4th fund that is a combination of the 3 distinct ones, and a bond fund. And those are mediocre choices. Several companies give 15-20 options to choose from in their 401K plans.
After Oct 29 dividend cut, stock should drop to $30. After Jan dividend announcement, stock should drop to $23. Based on shares outstanding and cost of 50% reduction in dividends.
The action of loading your 401K with CVX or XOM stock in hopes of a richer future can only be called one thing: "Blind Faith"...
@1szh+17jKmZXK I don't think those shorting work there anymore, so you can't, ahem, control them, even friendly :)
Hoping this is a joke- we are not permitted to short EM stock or participate in any futures or derivatives trading in the oil amd gas industry.
You know for a company of the best and brightest, I can't believe how much some of you guys are vested in XOM stock. It's not like there's a sudden drop in performance, it's been mediocre for 10 years now and then got c-apped on. Y'all need to get a better grasp on your financial acumen and future. #1 rule of investing is to diversify.
There was a study published earlier this year looking at what fraction of 401k was in employer stock for O&G employees. EM were top with more than 40%. Clearly best and brightest!!!
I have been with XOM for more than 20 years and every now and then, specially during down turns, our internal financial advisors would tell us to diversify and not put all your eggs in just one basket, specially that XOM stock. I've kept some of mine in the XOM basket for many years and its performance is the dumbest in my portfolio. I gave up all of my XOM stocks late last year.
You have a good advisor. Give him a nice bottle of wine
My advisor will only reluctantly recommend CVX. He called it the cleanest shirt in the dirty laundry. He also got me out of 90% of Exxon when we met 5 years ago at 83.
Did no one learn their lesson after Enron??
S—s to be them. Investment advisors say never put all your eggs in one basket. Hard way to learn the concept of diversification. Include and diversify!
Every year, XOM is required to report to the SEC end of the year investments in the Savings Program. At the end of 2019, the total in the Savings Plan was $19.3 Billion and $7.6 Billion (40%) was in ExxonMobil stock.
The high point over the last 20 years was end of year 2008, when 71% of the Savings Plan was in XOM stock.
Some bitter and nasty comments aimed at middle management, they aren’t the problem although some are, lots of good ones, the bitter comments demonstrates why you are where you are , look in mirror
Sorry to hear that.. but they deserve it. If they are not part of the solution they are also part of the problem and why we have performed so badly over the last decade!
Just too bad..
@rli+17jKmZXK I’m sorry to hear that. Perhaps they should make a gofundme for you so you can build back up your retirement savings.
I myself am 100% long on those pieces of the XOM pie. All the 401K.
But, like Pete Rose, I just shouldn't be betting at all.
or forced to.
Be careful. 10 year average annual return of EM stock is 1% and Equity Units is 14%. Hell, Common Assets (basically cash) is 2.8%. EM stock has been a loser since 2014. There are employees who still have too much EM stock in their Savings Plan account and that is unfortunate for them.
Can't wait for this place to be insolvent and Irving is auctioned off. 53 acres of (sub)prime real estate already on the block.
Deep OTM puts on XOM are my bread and butter!!!
@nnt+17jKmZXK Perhaps you are forgetting about the fact that the company is on the brink of bankruptcy. When you take that into account, the risk/reward looks a lot better.
@nnt+17jKmZXK I disagree. Only way to be fully hedged... too bad legally can't short XOM as an employee. Suppose that won't be a problem once we're cut though. Could take unemployment checks and place some deep puts.
Doesn't seem like the risk/reward is that great on a short. You would have a pretty high cost of carry since you are on the hook for dividend payments as the short seller. The stock has also been hammered pretty bad so your margin of safety is low
@wuy+17jKmZXK Thanks sir. I'll consider that option.
@zqw+17jKmZXK If you want energy exposure in your portfolio (not sure why you would) just reduce your 401k contribution and use that money to buy CVX in your brokerage account. Don't listen to the people that are telling you to load up on XOM stock. They lost half of their retirement savings this year. Do you really think they are in the best position to be giving advice?
I think (hope) its a joke you id–ts. Smart people would short the stock, but our leaders invested their retirement in XOM. Seems they should take finance 101. That is a dumb risky investment, just like most of EMs dumb risky investments (XTO, Kearl, Permian)
75% Exxon stock! Put it all on black hahaha plus you are a new hire. Let it ride bro
I don't know. With the price having so much upside potential and the protected 10% div yield, this could be a breakout in 2022. 10%? 15%? allocation along with a 50% equity units and 20% bonds 15% cash position? New hire that hasn't been to the EY session and need some advice so I'm not like those guys.
If you put -100% for your XOM stock election on your 401k, it will use the entirety of your contributions to short XOM stock. I've been doing it since I joined (2 years ago).
You're welcome
The EM 401k has very specific fund options. None of them have short positions in anything. Are you a random outsider spreading misinformation?