Exxon Mobil a Best Buy

With the market playing out its fears, there are a number of particularly good buys at this time. The safest and one of the best is Exxon Mobil. Not only has it dropped from about 93 to the mid- 80s in the last two days (Thursday's drop was the biggest since 2002), but it came in slightly below expectations for the quarter which fueled concerns and contributed to its decline. This is a great opportunity. It is just such an obvious play at this time, and it stands ready for impressive upside movement in the days ahead.

With the market playing out its fears, there are a number of particularly good buys at this time.  The safest and one of the best is Exxon Mobil.  Not only has it dropped from about 93 to the mid- 80s in the last two days (Thursday's drop was the biggest since 2002), but it came in slightly below expectations for the quarter which fueled concerns and contributed to its decline.  This is a great opportunity.  It is just such an obvious play at this time, and it stands ready for impressive upside movement in the days ahead. The worries about it missing its numbers are just noise.  This is the best company in the business -- even when it faces refining cost increases and supply issues-- and oil is a big deal.  Exxon's quarterly profits were up $10 billion, just as they have been for five out of the last seven quarters.  Oil prices are going up and will continue to go up.  And, Exxon will reap these rewards.  Oil futures are have gained 23% since January and $90 a barrel is very much in sight.  The company is on target, according to a report today in the New York Times, to beat last year's record earnings.I have no connection with Exxon, but I do own their stock.  It is just such an obvious play -- and one that doesn't come along that often.  Buy some, you will like it.The New York Times article is  http://www.nytimes.com/2007/07/27/business/27oil.html

 

Daniel Socolow
Daniel Socolow: President, Socolow Group. Former Director of the MacArthur Fellows Program, President of the American University of Paris, Vice President of Spelman College. BA, MA, Ph.D.

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Comments

  • Anonymous

    July 28, 2007

    I just read that Exxon's quarter was the fourth most profitable in corporate history. It's PE is low and oil is going up. I have to agree with you.

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