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Apr
4
Jonathan Yates
Profit from Board Fight at Occidental Petroleum
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Occidental Petroleum (NYSE: OXY) is in the midst of a board fight, which can lead to opportunities for profit for savvy investors.

While many Big Oil companies such as Exxon-Mobil (NYSE: XOM) and ConocPhillips (NYSE: COP) have done well, as detailed in previous articles on this site, Occidental Petroleum has fluctuated in price.  For 2013, Occidental Petroleum is up by 6.63%.  Over the last year of market action, however, Occidental Petroleum is down by 11.70%.

There is much to like about Occidental Petroleum.  The price-to-earnings ratio is improving.  Its gross margin and operating margin are very robust. The dividend yield is 3.16%, much higher than the average of around 2% for a member of the Standard & Poor’s 500 Index.

As the chart below shows, Occidental Petroleum has been up and down.  Chevron (NYSE: CVX), reviewed in another article on this site, by contrast, has pretty much surged.  Generally, oil companies will move together as much of the company performance depends on the demand for energy.  Once the leadership situation at Occidental Petroleum is squared away, it is possible the share price will rise like those have for Exxon-Mobil, Chevron, and ConocoPhillips.

 



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  1. Why pass up chevron shares at pe under 9 and a better dividend, than play god a guess the bottom of board mishaps. Oxy’s pe is around 14 with storm clouds gathering.

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