Widely Traded Stocks: CrossProfit in Energy Stocks on Exxon (XOM)
Oil at $85 or $65? Either Way XOM Bores to New Highs
XOM current projected 2006 earnings reflect oil at $51 per barrel. We should start seeing the effects of $65 - $75 pricing contributing to Q3 earnings. Once it is apparent that oil is not returning to the $45 range (at least not in 2006), XOM stock will appreciate by as much as 20% from current levels. Like all companies, XOM works on a profit margin. A 10% margin on $40 is $4. A 10% margin on $65 is still 10% but is $6.50! In theory XOM could turn in an astronomical record breaking performance for 2006 and post a $44 billion profit. We all need to adjust our thinking regarding $35+ billion per year profits as a present and future normality.See this article written months ago…
http://www.marketwatch.com/News/Story/Ffk9Nd5TbpPKzmkkvNDw54T?siteid=bigcharts&dist=morenews
As per the last conference call XOM has put most of its refinery maintenance work behind it in Q1. This should add another 5-6% in Q2 & Q3.
Disclosure: This is a personal comment written by a CrossProfit analyst.This does reflect the opinion of CrossProfit.com.
http://www.crossprofit.com
XOM current projected 2006 earnings reflect oil at $51 per barrel. We should start seeing the effects of $65 - $75 pricing contributing to Q3 earnings. Once it is apparent that oil is not returning to the $45 range (at least not in 2006), XOM stock will appreciate by as much as 20% from current levels. Like all companies, XOM works on a profit margin. A 10% margin on $40 is $4. A 10% margin on $65 is still 10% but is $6.50! In theory XOM could turn in an astronomical record breaking performance for 2006 and post a $44 billion profit. We all need to adjust our thinking regarding $35+ billion per year profits as a present and future normality.See this article written months ago…
http://www.marketwatch.com/News/Story/Ffk9Nd5TbpPKzmkkvNDw54T?siteid=bigcharts&dist=morenews
As per the last conference call XOM has put most of its refinery maintenance work behind it in Q1. This should add another 5-6% in Q2 & Q3.
Disclosure: This is a personal comment written by a CrossProfit analyst.This does reflect the opinion of CrossProfit.com.
http://www.crossprofit.com
posted by douglas mcintyre at 5:40 AM
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