Chevron (CVX) is my easy pick for August investment. Amazingly cheaper than other oil companies like Exxon (XOM) or Total (TOT) August 30, 2006Posted by deminvest in Chevron (CVX), Exxon (XOM), investment, stock I own, stocks, Total (TOT).
We proletarian investors do not have chances to get first hand information about stocks, but we can read numbers. When I see lovely bargain numbers in a healthy company that I understand well like Chevron I buy.
CVS has P/E: 9.06, forward P/E: 8.37.
Now compare it to XOM: P/E:10.86 forward P/E:10.90. CVX is much cheaper and also expected to grow. CVS has also better P/E ratios than TOT.
Now that oil is so precious, what really brings value to oil companies is the amount of oil reserves. Oil equivalent reserves are the total amount of oil and natural gas those companies own and can take out of the soil. The numbers there are amazingly favourable for Chevron:
CVX has oil-equivalent reserves of 9 billion barrels. CVX has Market Cap (price to buy all the stocks) of 144.50B.
Exxon (XOM) has a Market Cap of 412.64B for 21 billion barrels of oil-equivalent reserves.
Total (TOT) has a Market Cap of 334.30B for 11 billion barrels of oil-equivalent reserves.
So when I buy CVX, I get the most inexpensive oil.
Considering that CVX I growing fast (at least as long as oil price stays high):
Qtrly Revenue Growth (yoy):10.30%, Qtrly Earnings Growth (yoy):18.20%.
If I add to the lovely picture the fact that CVX will give me a hefty 3% dividend yield, I have the great pick of August and will buy $1000 worth of CVX in the next… 200 seconds.
Let the force be with me!