Buying 24 shares of Schlumberger (SLB) here on the 150 day mavg. Updates to follow on SLB. I am still eyeing MSFT but it’s up today; I can’t chase it.
Looking to exit XOM for a loss if the weakness in refiners continues (I like SLB because they profit off of companies like Exxon, who have the high finding costs). My stop loss is in at 97.58 for XOM.
I knew that Exxon’s high finding costs ($40 billion a year in spending) would be a problem. However, when they make $420 a year in revenues, annually, you would think that they would get the benefit of the doubt, especially when it comes to holding the 200 day mavg.
Exxon also sports a healthy dividend and is a best of breed play (blue chip), so you would think traders AND investors, alike, would step in and buy XOM.
But with the high finding costs, geopolitical risks being reduced, and a rising dollar, (bc Europe & Japan are weakening their currency through additional stimulus efforts, increasing the value of our dollar) commodity related names, in the near-term, may continue to struggle.
The dollar has had a big run, though, and SLB is 15% off its highs. I think it would be wise to pick away at some quality energy names here, who are in the right spaces to benefit from the energy boom in the U.S. They don’t get any better than Slumberger. Regards.
-Todd Akin
