Stockchase Opinions

David Fingold Occidental Petroleum Corp OXY-N DON'T BUY Apr 25, 2022

There is too much leverage now. There is a solid underpinning of supply of fossil fuels so if the industry does well OXY does well, but if the industry does poorly then OXY does poorly because of the balance sheet.
$55.020

Stock price when the opinion was issued

integrated oils
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BUY
Things were dicey for them in 2019 when they borrowed a lot of money to buy a company, then crude oil plummeted in April 2020 and so did OXY. But OXY is incredibly sensitive to oil prices, falling further when crude oil falls, but rallying higher when crude rises. Therefore, it's gone from fighting for survival to printing money. Who knows? Maybe Berkshire Hathaway will buy all of OXY, since BH keeps buying more shares of it. OXY is still good if crude oil holds at this price.
COMMENT
Top stock on the S&P in 2022, up 115%. The heavy short action has unwound a lot. Energy is the top performer by far--even beyond crude oil prices--in 2022. Looking ahead: these companies will focus on improving debt and serving shareholders.
BUY
BRK.A boosting its stake.

Likes it. Encouraging. Warren Buffett, one of the shrewdest, most patient investors of all time, is stepping up in the face of widespread negative sentiment. The most uncomfortable buys are usually the best ones. Don't chase the herd and buy NVDA. Be patient and tune out the noise.

HOLD

Investors think the oil market is still in 2022. It's not. Would sell energy, though still holds this. Is nothing more than a hold.

TRADE

He bought this late. Bought it because one of the greatest investors, Buffett, in the world bought it. Energy is a tough sector; expects the momentum will eventually turn and oil falls to the $80s.

DON'T BUY

Is shocked this hasn't move up more after Buffett added more shares and the war in the Middle East.

BUY

With a strong balance sheet and earnings growth, OCY bought Crownrock. However, this won't make a difference in the face of supply of crude oil overwhelming demand. Yes, Berkshire's ownership is like a stamp of approval and is a big reason to own Oxy.

COMMENT

Berkshire just added to their large position, now 28%. This is a make or break quarter for energy. There's a divergence between the spot price of oil and oil stocks. Stop looking at that price which had gone nowhere in over 2 years.

TOP PICK

It is very cheap. It tracks the price of crude pretty well and is still trading below when crude was at its lows a couple of years ago. He think oil is going to $85. It is an undervalued oil trade so he would consider options. Pays a nice dividend.      Buy 8  Hold 19  Sell 1

(Analysts’ price target is $67.69)
DON'T BUY

Yes, Warren Buffet owns it, but OXY has a lot of debt.