Exxon Mobil (XOM-N)

It's tough being overweight energy now with WTI negative on a YOY basis and badly underperforms the market.

They report Friday. He doubts they will report anything positive because of the low price of oil.

He's bullish energy and this is the must-buy. Scale will matter and XOM can spread its costs over a wide base.

It reports Friday. He won't buy any oils, because these companies could cave to Trump's demands of drilling like mad. He thinks they will stay disciplined.

Amazing capital allocators. Only problem is that political leaders think oil usage is obsolete. A must-own.

Is overvalued vs. Chevron. Don't own any oil stocks, because of their high PE which limits their yields.

Oil price is low, OPEC is extending cuts. Expectations of a slower economy impacts demand. May also see challenges if Trump encourages oil production. The challenges are showing up in the oil stocks. 

CNQ chart shows a breakdown, negative profile. He'd hold off for both. Next seasonally strong time is February, perhaps late January. At that time, he'd prefer CNQ.

His firm is doing some research on nuclear power and electricity generators. Hasn't pulled the trigger yet. Likes the idea of data centres driving change in electricity demand. 

This name is about 2/3 oil production, and 1/3 natural gas. Also 13-14 refineries well-placed in the US and elsewhere. Chemical products business. New management has improved margins. Will benefit from Trump trade. Timely entry point.

Exxon is up 17% this year vs. Chevron in the negative. Pick your spots in oil. XOM is a winner.

Very strong management team. Proven resources with excellent capital allocation skills. Investors can get returns without going downmarket into riskier name. Oil industry under valued with lots of opportunity for price appreciation. Balance sheet very stable, great option for the investors in the long term. Return of capital to investors is being expedited along with capital spending on new projects (best of both worlds). 

He likes that they are downstream in the capex cycle.

The cash flow of integrated energy companies like this allow rising yields and share buybacks.

Is hitting a new high today because oil prices are high. XOM's earnings are down this year, because those prices are down. He can't say that oil prices are definitely rising, but OPEC sees demand rising through 2050. There's a lot of room for prices to go higher.

It is the best oil company in the world and pays a dividend so is good for the long term. Crude is not near its highs and could go to $80 or $85. The options are very cheap so he would be buying calls.

Nice valuation. Likes LNG exposure.