Filed under: Exxon Mobil (XOM), Commodities, Oil

If you’re a low-risk investor looking a for modest growth stock with a high degree of safety, Exxon Mobil Corp. (NYSE: XOM) is worth a review.

With the markets in a choppy consolidation mode (or perhaps worse), the integrated oil sector has appeal as a defensive strategy.

Integrated oil and gas giant Exxon Mobil fits the bill, by virtue of its sheer exploration capability, assets, diversification, and managerial prowess. Each year, Wall Street analysts generate at least one research report on the ‘fat’ that must be cut from ‘bloated’ Exxon Mobil. Here’s the incisive point that doesn’t take an MBA from Harvard to discern: in a multinational corporation of that size, there’s always going to be an amount of fat (unnecessary positions or operations) — or at least an interpretation by someone in analytical circles that asserts that fat exists. Meanwhile, XOM, year-after-year, continues to be one of the best-managed companies in the integrated oil sector: upstream is solid, downstream is solid, and in 2007-2008 look for expanding margins in chemical operations.

Continue reading ExxonMobil (XOM): A conservative oil play

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This entry was posted on Monday, October 22nd, 2007 at 2:20 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.