Replies to post #39824 on A.I.M. Users Bulletin Board (AIMUSERS)

[jaiml]

Hi Alton,

I too had started a new AIM program with COP. However, I am now thinking dividends will be a drag in such an environment ... Big dividend payers might thus take longer to recover. So perhaps a safer thing to do in this env. is to pick a cash-heavy, growth-oriented, non-dividend paying stock. What do you think?

[karw]

Hi Alton,

According to Morningstar COP has a negative free cash flow. and the payout ratio would be 216%.

All other major energy companies have Morningstar numbers that would normally not be attractive. Their cash flow has to improve to make these price levels appropriate.

In the 1930's depression oil was 10c a barrel. That is not a level that we will see(...), but 10 or 20 dollars is not impossible.

The question is then, do you want to buy now, even at AIM buy prices, or wait a bit more. You can feel the fear increasing, but despair is not available yet.

Luckily I can wait a bit longer before my next GNAT buy.

Maybe october 2015 will be interesting!

Best Regards,K