My long-time readers know that my calls tend to be measured, and I am not given to hyperbole. So why do I call Royal Dutch Shell RDS.B, the best super major oil company?
There are six super major oil companies: BP Plc BP, ConocoPhillips COP, Chevron CVX, Royal Dutch Shell, Total SA TOT, and Exxon Mobil XOM.
In our analysis at The Arora Report, in terms of future-projected returns for the long-term investor, Royal Dutch Shell is simply the best among the super majors. As of this writing, it is trading at 54.89 and yielding 6.85%. The Arora Report target zone is 68.00 to 76.00. The midpoint of the target zone means 31% capital appreciation. Further, the stock has the potential to about double over the next four to five years if oil and natural gas prices recover.
When bad is good
Paradoxically in the world of investments, what seems bad on the surface is often good for the discerning investors. The bad depresses the stock price. Those investors who are able to get in at the depressed price make huge profits when things turn around.
Royal Dutch Shell is a prime example of the foregoing. The bad right now is that the company has a negative free cash flow and does not cover its dividend. The infographics tells the story of the cash flow along with other relevant information.
Please click here for free cash flow and other relevant financial data infographic.
Going from bad to good means big change; in our ZYX Change Method, five stages of change are defined. Royal Dutch Shell at present is at stage one…Read more at MarketWatch
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