Stock price when the opinion was issued
One of the best performing major energy companies in the world.
Trades at cheaper price than other names in the sector.
Very good oil marketing & trading group.
Good capital allocation at company with share buybacks and debt reduction.
Expecting recovery of oil price going forward.
Stock's never really recovered from oil spill in 2010. Macro overlay of tariffs and a slowing economy. Would make sense for Shell to try for a takeout, but would probably fail on anti-trust. He thinks Shell is the better company, and that's the one he holds in the space.
Generally, oil is out of favour. You make money when you buy, not when you sell. If you like the name, you can buy it here. If you get a takeout premium on it, then sell into the premium and don't wait for the close.
(A Top Pick Dec 20/12. Up 15.73%.) The story that is overhanging this company is the liability issue around the Gulf of Mexico oil spill. He understands that unless the US government can prove gross negligence, which is very difficult to do, the company is adequately provisioned from a liability point of view. Settled 3 lawsuits today and as the process continues, you will see the stock move higher on the back of higher dividends and share buybacks.