This chart has been ugly for three months, but the last two weeks have been a horror show for Conoco Phillips. The stock sits at 52 - in danger of literally 'falling off the table'. What to make of this crash? Can the price of crude oil stabilize or will we see more pain next week?
Based on the Iran deal - I don't see oil bouncing to the upside, which in turn will cap any potential for COP to execute a 'massive' turnaround as well. I don't believe it will remain this cheap, however as the stock sports an incredible 5.8% dividend yield after this crash.
The question is - how safe is that dividend? Will the crash in oil result in oil companies slashing dividends? And if so - can you still own COP, XOM etc?
I've yet to hear of any large integrated oil company talking about the dividend yet - and usually you hear rumors and rumblings before the trouble really begins.
That said - my decision on whether to 'hold' COP rests with WTI oil prices. That chart will be next.
Based on the Iran deal - I don't see oil bouncing to the upside, which in turn will cap any potential for COP to execute a 'massive' turnaround as well. I don't believe it will remain this cheap, however as the stock sports an incredible 5.8% dividend yield after this crash.
The question is - how safe is that dividend? Will the crash in oil result in oil companies slashing dividends? And if so - can you still own COP, XOM etc?
I've yet to hear of any large integrated oil company talking about the dividend yet - and usually you hear rumors and rumblings before the trouble really begins.
That said - my decision on whether to 'hold' COP rests with WTI oil prices. That chart will be next.