CVX Chevron

[DividendGarden]

Today, CVX announced that they will suspend share buybacks for 2015. It seems that many companies do buybacks when shares are higher, but suspend or cut buybacks when shares are cheap. Your thoughts on CVX's announcement today?

http://seekingalpha.com/news/2260886-che...-3-percent

[EricL]

(01-30-2015, 01:58 PM)DividendGarden Wrote: Today, CVX announced that they will suspend share buybacks for 2015. It seems that many companies do buybacks when shares are higher, but suspend or cut buybacks when shares are cheap. Your thoughts on CVX's announcement today?

http://seekingalpha.com/news/2260886-che...-3-percent

I agree with the decision. Maintain cap-ex where needed to keep growth projects going and preserve the dividend first. Buybacks are a bonus when extra cash is available.

I agree it's better for them to buy low than buy high, but I think this is the prudent thing to do in the current operating environment.

[benjamen]

CVX earnings dropped 30% ($3.5 billion vs $4.9 billion)compared to last year's fourth quarter. Keep in mind that this was for Oct-Dec, when the average oil price for that quarter was roughly 70 dollars a barrel. How far will their 2015 first quarter earnings fall if the average oil price in this quarter is 40-50 dollars a barrel?

[Roadmap2Retire]

Companies arent necessarily smart about when to buy. Heres an old article from Fortune discussing that bad timing from companies.

http://fortune.com/2011/07/11/stock-buyb...-sell-low/

[hendi_alex]

Last time crude. was generally between $75-$85 CVX traded at well under $75. IMO crude will rebound pretty easily to $75-$85 range but I'm expecting it to stay there for a prolonged period. All of my energy buys will be operating under that assumption. One thing for sure, most corrections go well beyond what anyone would expect, therefore CVX at under $50 is not out of the question. I'll be holding back some cash in case that kind of dip materializes.

[EricL]

On cue Tim McAleenan had a post on his site about Chevron this afternoon.

Chevron Below $100 Per Share Is Blue-Chip Value Investing

[rapidacid]

http://www.streetinsider.com/Hot+Insider...55100.html

Quote:After the close, Chevron (NYSE: CVX) Director John Stumpf, disclosed the purchase of 180,000 shares of common stock made on 05/11/15 at an average price of $108.10. Stumpf is the CEO of Wells Fargo (NYSE: WFC). He has been a director at Chevron since 2010.

The transaction value of the purchase is a staggering $19.46 million and comes with the stock down 14% over the last 12-months on plunging oil prices worldwide.

The purchase was massive compared to his prior direct share stake of just 1,885. He also owns 18,208 shares indirectly through a Family Trust. Following the recent purchase, Stumpf now own a total of 200,093 shares of Chevron.

[EricL]

Posted an article on Seeking Alpha this morning about Chevron vs. Exxon Mobile and their dividend histories.

Both have had extended freezes multiple times in the last 20 years, just happens to be CVX this time.

[Roadmap2Retire]

Enjoyed this short doc (~23m long): Inside Chevron - Bloomberg Special Report

[Dividend Watcher]

(06-11-2015, 10:40 PM)Roadmap2Retire Wrote: Enjoyed this short doc (~23m long): Inside Chevron - Bloomberg Special Report

Nice find, R2R.

[Roadmap2Retire]

(06-12-2015, 02:05 AM)Dividend Watcher Wrote:

(06-11-2015, 10:40 PM)Roadmap2Retire Wrote: Enjoyed this short doc (~23m long): Inside Chevron - Bloomberg Special Report

Nice find, R2R.

Bloomberg makes some good documentaries - similar short 20ish minute formats. There are a few available on Netflix (in the documentaries section) - I really enjoyed the one on PepsiCo (PEP). The ones on Chipotle (CMG) and McDonalds (MCD) werent so bad either.

cheers

[navyasw02]

Chevron is down 20.55% since I bought it. Ouch. Good time to stock up maybe?