Occidental Petroleum Added to the SMA Portfolio

By on October 8, 2019

Occidental PetroleumOccidental Petroleum Corporation (OXY) was added to the SMA Portfolio today at a price of $41.25. OXY represents approximately 1.0% of the portfolio. Energy companies have underperformed this year and OXY appears to be a relative bargain with a yield over 7%. The stock is 50% below its 52 week high.

OXY management probably overpaid for the Anadarko Petroleum acquisition given the price destruction in the energy complex year to date. However, I believe OXY stock has overreacted to the downside. Carl Icahn might disagree as he has stated management bet the company on the deal. Time will tell, but OXY seems like a bargain at its current level.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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