Biotech Values

[DewDiligence]

Why did you drop CVX and XOM?

Both are fine companies, but Shell (RDS-A/B) currently represents better value, IMO.

As a result of the XTO acquisition, XOM has become more gassy than oily with adverse consequences for profitability (#msg-52105887). CVX can’t seem to avoid the crosshairs of foreign countries who seek to extort penalties for alleged environmental sins (#msg-70537135, #msg-73402650).

Shell has re-entered a growth period in production (#msg-71742179) and has excellent geographic diversification. It is the world’s leading company in LNG (which, unlike ordinary NG, sells at a global oil-based price). The P/E ratio is low and the dividend yield is high. What’s not to like?