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Shares of Newsletter Portfolio Idea Exxon Mobil Are Booming Higher!

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Image Source: Newsletter portfolio idea Exxon Mobil Corporation has seen its share price boom higher over the past year. We see room for additional capital appreciation upside potential going forward. By Callum Turcan Shares of Exxon Mobil Corporation (XOM) have boomed higher over the past year, and we see room for additional capital appreciation upside potential. Our fair value estimate for Exxon Mobil sits at ~$90 per share, though in the current raw energy resources pricing environment, the top end of our fair value estimate range may prove to be a more pertinent gauge of Exxon Mobil’s intrinsic value. We are huge fans of the energy major and include Exxon Mobil in the Best Ideas Newsletter, Dividend Growth Newsletter, and … Read more

Chevron Buys Renewable Energy Group

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Image Shown: Chevron Corporation is acquiring Renewable Energy Group Inc through an all-cash deal that was announced at the end of February 2022. Image Source: Renewable Energy Group Inc – October 2020 IR Presentation By Callum Turcan On February 28, Chevron Corporation (CVX) announced it would acquire Renewable Energy Group Inc (REGI) through an all-cash transaction. The energy giant is paying $61.50 per share in cash for each share of the renewable fuel producer through a deal with a total enterprise value of $2.75 billion when including Renewable Energy Group’s $0.4 billion net cash position. During the second half of 2022, the transaction is expected to close. Overview  Renewable Energy Group produces biofuels with a heavy emphasis on biodiesel and … Read more

Evaluating the Exposure of Chevron and Exxon Mobil to Russia’s Energy Industry

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Image Shown: Shares of Chevron Corporation (blue line) and Exxon Mobil Corporation (orange line) have skyrocketed over the past six months. By Callum Turcan In the wake of Russia invading Ukraine (again) in February 2022, geopolitical tensions between the West and Russia have reached levels last seen during the height of the Cold War. At the beginning of March 2022, near term WTI and Brent futures were trading north of $100 per barrel while liquified natural gas (‘LNG’) spot prices and European natural gas prices remained incredibly expensive. The supply-demand dynamics for crude oil and natural gas were already tight before this crisis, and in light of the expansive sanctions programs enacted by the West and some of its allies … Read more

The Castle Trumps the Moat

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Please select the image below to download the report. Backtested results are hypothetical and do not represent actual trading. Actual results may differ from backtested information being presented. Tickerized for firms held in the Morningstar (MORN) Wide Moat ETF (MOAT) at the time of this writing.

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

Valuentum’s Theses on Best Ideas Chevron and Exxon Mobil Playing Out

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By Callum Turcan Raw energy resources pricing has surged higher during the past year with room to run. The global energy complex is on the rebound as demand for crude oil and refined petroleum products is steadily recovering from the worst of the coronavirus (‘COVID-19’) pandemic. As demand for electricity and heating needs held up well during the pandemic, liquified natural gas prices (‘LNG’) put up a strong year in 2021 and remain elevated. The OPEC+ cartel is committed to slowly phasing out its crude oil supply curtailment agreement first enacted in 2020, effectively limiting growth in global oil supplies at a time when demand is rebounding at a brisk pace. We view the near-term outlook for the global energy … Read more

The Valuentum Weekly Is a Hit! Only Delivered By Email!

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Image: Excerpt from the November 14 edition of the Valuentum Weekly. November 14, 2021: Inflation Is Positive for Nominal Earnings While Interest Rates Remain at All-Time Lows Tickers mentioned: GOOG, FB, PYPL, DIS, JNJ, BRK.A, BRK.B, ASML, BYND, RIVN, TSLA, JD, WB, BABA, GE, TOSBF, Z, ZG, OPEN, RBLX, GLD November 7, 2021: Large Cap Growth Has More Room to Run Tickers mentioned: SCHG, GME, AMC, BBBY, CVX, XOM, XLE, MA, V, PYPL, QCOM, RSG, NEM, TSLA, PTON, Z, ZG, F, IWN, GMET October 31, 2021: Happy Halloween! Tickers mentioned: AAPL, AMZN, QQQ, SPY, INTC, FB, GOOG, MSFT, LMT, MVRS, DLR, XOM, CVX, DIS, SLB, HON, INTC, CMG, PYPL, PINS, TSLA, HTZZ, PTLO, RSG, SBUX, MCD, NEM, SCHG, IWN October 24, … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

Our Favorite Energy Giants Chevron and ExxonMobil are Focused on Returning Cash to Shareholders

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Image Shown: Shares of Chevron Corporation (blue line) and ExxonMobil Corporation (orange line) are both up sharply year-to-date as of this writing. By Callum Turcan Two of our favorite energy companies, Chevron Corporation (CVX) and ExxonMobil Corporation (XOM), recently reported their third quarter 2021 earnings reports. We include Chevron and ExxonMobil as ideas in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios given their ample capital appreciation upside and promising dividend growth trajectories. The top end of our fair value estimate range for Chevron and ExxonMobil stands at $144 per share and $110 per share, respectively, well above where each company’s shares are trading as of this writing. Shares of CVX yield ~4.7% and shares of XOM yield … Read more

Schlumberger Recovering, Outlook Bright

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Image Shown: Shares of Schlumberger NV are on the upswing, though the company’s stock price remains far below levels seen before the COVID-19 pandemic. By Callum Turcan On October 22, the oilfield services giant Schlumberger NV (SLB) reported third-quarter 2021 earnings that missed consensus top-line estimates and matched consensus bottom-line estimates. The company’s business continues to recover as oil & gas investment activity is picking up steam around the globe after getting decimated last year in the face of the coronavirus (‘COVID-19’) pandemic. Looking ahead, Schlumberger expects significant improvement in its mid-cycle financial performance from current levels, aided by major cost structure improvements embarked on last year. Financial Snapshot The firm’s GAAP revenues grew by 11% year-over-year due to growth … Read more