Sunday, May 05, 2019
My 2nd largest energy position (after ECA) is OXY. It is stunning. Even with oil prices (USO) up 33% in 2019, OXY is down 5.5%.
Why? I guess the biggest reason is they have made a competing bid for APC (although even at their peak in 2019 they were only up 10% while ECA was up 30% at their peak).
There is something else going on in the Energy space. Norway is divesting and that is causing downwards pressure on share prices ( ). I highly recommend you read this article. Not only does it help explain recent weakness in energy names, but it helps explain strength in renewables (SEDG up 28%, FSLR up 45% and SPWR up 51%).
Eventually the selling pressure will end. Eventually the APC saga will play out. I believe OXY has put in it's low from the two pressures. And there is substantial upside plus a well-covered 5% dividend.
Here is a great article in Barron's today about OXY.
Posted by Marsh_Gerda at 8:20 AM