Exxon Mobil Stock

There is much ado about the weakness of the commodity sector, in particular oil, right now.  Fears of a faltering global economy seem to be driving all commodities, with the exception of gold down.  The reality is, however, perhaps much different.  One of the first reasons is a potential squeeze on supply because of the BP oil spill.  Exxon investors are in a good position to gain from this unfortunate accident.  The second reason is the potential for massive inflation because of the American Federal Reserve’s massive growth in the monetary base.  These two factors really could work independent of a faltering economy to push oil and the energy sector back up, making ExxonMobil a particularly nice looking investment right now.

Uncategorized bp, commodities, economy, gold, inflation, investment, oil spill

You may find it hard to believe, but things are looking pretty good for Exxon Mobil stock.  Here you have a company that is trading at a lower price than 1 year ago despite improving its balance sheet and dividend (right now about 3 percent!).  In addition, the company’s acquisition of XTO Energy has the potential to offer continued growth for a company that has already been doing just that.  I think that the company may actually be able to take advantage of the BP situation because of its solid balance sheet.  BP may find itself in a position of needing to sell off assets – Exxon Mobil is a likely purchaser of said assets.  Given these reasons and its attractive valuation, I think Exxon Mobil represents a good value and income investment play.

Uncategorized balance sheet, bp, income, investment, value, xto