With shares of Exxon Mobil (NYSE:XOM) trading at around $89.58, is XOM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Investors love to talk about huge gains. Whenever you listen to an investor brag about a home run, keep in mind that he’s likely excited because he’s a gambler who constantly needs action. Therefore, there’s a good chance that he also has many large losses. It’s the quiet guy who listens who is more likely to own shares in a company like Exxon Mobil. There is no outward excitement because this isn’t a gamble. It’s a steady climb toward increased wealth. In a way, gains are fully expected. Therefore, there is no reason to get excited.
The latest news is that Exxon Mobil began knowingly adding an environmentally harmful chemical to gasoline in 1984. Really? While this is terrible for the company to have participated in, from an investing standpoint, it should have no bearing on your decision. Yes, there is an $800 million trial, but keep in mind that Exxon Mobil has over $53 billion in operating cash flow. If the stock drops in any way, shape, or form due to this news, then it would be a good opportunity to pounce.
Exxon Mobil produced 2.4 million barrels of oil and 12.1 billion cubic feet of natural gas per day in 2011. In addition to that, this is a company that is constantly exploring and expanding. For more information in this regard, look at the company’s press releases.
Now let’s take a look at the most important numbers for Exxon Mobil.