jump to navigation

ExxonMobil stock split coming? November 1, 2012

Posted by hslu in Energy, Obama, Oil.
Tags: , , , , , ,

Is a ExxonMobil stock split coming soon?

The company’s stock has hovered above $90 for almost 2 months now. Base on my recollection, Mobil, before it was bought out by Exxon in 2000, split its stock when it traded above $90 for an extended period of time. I remembered that one of the reasons given to employees for the stock split back them was that company wanted to encouraging stock ownership by individual investors. As such, a $100 stock price seemed like a mental block for many small investors.

Exxon seemed to have the same philosophy judging by stock chart on Yahoo.

ExxonMobil just announced a $5 B stock buy back program which is good for small investors.

I am guessing that the board may announce a 2 for 1 stock split and a ~10% hike of dividend at its next annual meeting, usually in May.

In the age of low interest rate to as far as eye can see, thanks to Bernanke, Operation Twist and Q3, stocks of a high quality oil company such as ExxonMobil, will continue to be bought by individual investors seeking yield and safety.

If Obama is fired next week, and I have no doubt that he will be fired, oil companies will breath a big sigh of relief from the likes of EPA, Dept. of Energy, Interior Dept. and tree huggers. Oil company stocks in general, and ExxonMobil of course, will likely see a jump to new highs.

%d bloggers like this: