Second-quarter results continue to show how the big oil exploration firms are making progress towards being cash flow positive with oil below $50/bbl. ConocoPhillips (COP) is a prime example of this positive development that is further enhanced by the dividend cut when oil prices plunged last year.
The company though is a big part of the industry production growth issue that is keeping energy prices down. Does one really want to own the stock on the rebounding cash flows?
The quarterly results were meaningful in that ConocoPhillips returned to generating profits. The ability to return to profits after a couple of years of sizable losses is a testament to the amount of cost cuts undertaken for the company to profitably produce with oil below $50/bbl.
What sets this independent oil explorer above the rest was the dividend cuts back in 2016. ConocoPhillips is now aligned that operating cash flows can cover capital expenditures and the quarterly dividend.
For Q2, the company had operating cash flows of $1.6 billion and capex of only $1.0 billion leaving $0.6 billion for dividends and debt repayment.
Top Energy Stocks To Own For 2018: Emerson Radio Corporation(MSN)
Advisors’ Opinion:
- [By WWW.MONEYSHOW.COM]
Emerson Radio (MSN) is a marketer of consumer electronic products and various housewares.
The company has about $1.91 in cash per share, yet sells for less than half that amount. The stock trades at 7.5 times forward earnings. The company is debt free.
Top Energy Stocks To Own For 2018: Goldfield Corporation (The)(GV)
Advisors’ Opinion:
- [By Jim Robertson]
Just before Thanksgiving, our Under the Radar Moversnewsletter suggested buying small cap electrical infrastructure stockGoldfield Corp (NYSEMKT:GV):
Top Energy Stocks To Own For 2018: 3M Company(MMM)
Advisors’ Opinion:
- [By Ben Levisohn]
Second, how will the Dow get to that big magic number? Well, the six biggest stock weightings in the DJIA are: Goldman Sachs (GS), 3M (MMM), International Business Machines (IBM), UnitedHealth Group (UNH), and Boeing (BA). What you will notice looking at a day like yesterday is that tech led the way sector wise. If the Dow is going to outperform, we need mega caps to outperform. We need those six stocks to outperform. So we need a day where financials and industrials outperform to get there. Given the trends in sector leadership, that is bound to happen…We are one Trump tweet talking about how yuuuuuuge Goldman Sachs is away from 20k.
- [By Paul Ausick]
3M Company (NYSE: MMM) traded up 0.91% at $201.53. The stock’s 52-week range is $163.85 to $214.57. Volume was about half the daily average of around 1.8 million shares. The company had no specific news Monday.
- [By Paul Ausick]
3M Company (NYSE: MMM) traded up 1.38% at $198.50. The stock’s 52-week range is $163.85 to $199.90. Volume was about 35% lower than the daily average of around 1.9 million shares. The company had no specific news Monday.
- [By Paul Ausick]
3M Company (NYSE: MMM) traded down 1.05% at $210.38. The stock’s 52-week range is $163.85 to $214.57. Volume was about 20% below the daily average of around 1.8 million. The company had no specific news.
- [By WWW.THESTREET.COM]
We saw this pattern with 3M (MMM) , one of my favorite stocks, which got crushed, falling from $177 to $173 because of what the headline writers called a weak consumer-products division. Sure, you can pull a line and see an unexpected decline. But declines do not necessarily mean weakness, which, to me, connotes a failure to have the right product and flagging sales. If you go listen to the conference call, you discover that the weakness had to do with a particularly retailer’s troubles. Sure, you could argue, why do we trust this company? I come back and say, you trust them because CEO Inge Thulin has been money in the bank for years and there’s no reason not to trust him.
