Exxon Mobil Corp
Energy : Oil& Gas - Integrated

Undervalued-Stock.com issues a BUY rating for one or more of the following reasons:

• earning history is stable
• Price to earnings (P/E, PE) ratio is below its average PE ratio for the last 10 years
• selling at a price below its book value
  
• trailing 3-years earnings have risen over the past 10 years
• credit rating is AAA, AA, or A
• did not have a loss during the last recession
• Price to book ratio is below its historical average
• long term earnings growth increase
  
• strong competitive position
• successful business execution
• business type and size

STOCK RESEARCH

[2010 ANNUAL REPORT (10-K) EXCERPT]

 

 

 

 

 

 

 

Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. ExxonMobil also has interests in electric power generation facilities. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.
 
Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso and Mobil, as well as terms like Corporation, Company, our, we and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates. The precise meaning depends on the context in question.
 
On June 25, 2010, ExxonMobil acquired XTO Energy Inc. (“XTO”) by merging a wholly-owned subsidiary of ExxonMobil with and into XTO (the “merger”), with XTO continuing as the surviving corporation and a wholly-owned subsidiary of ExxonMobil. Each share of XTO common stock was converted into the right to receive 0.7098 shares of common stock of ExxonMobil plus cash in lieu of fractional shares. The merger combines XTO’s high-quality unconventional gas and oil shale reserve base and technical expertise in unconventional development with ExxonMobil’s research and development expertise, project management and operational skill, global scale, and financial capacity. Details of the merger transactions are contained in the Financial Section of this report under the following: “Note 19: Acquisition of XTO Energy Inc.”
 
Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels as well as projects to monitor and reduce nitrogen oxide, sulfur oxide, and greenhouse gas emissions and expenditures for asset retirement obligations. ExxonMobil’s 2010 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were about $4.5 billion, of which $1.9 billion were capital expenditures and $2.6 billion were included in expenses. The total cost for such activities is expected to remain in this range in 2011 and 2012 (with capital expenditures approximately 40 percent of the total).
 
The energy and petrochemical industries are highly competitive. There is competition within the industries and also with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. The Corporation competes with other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods of competition which are lawful and appropriate for such purposes.
 
Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the following: “Quarterly Information”, “Note 17: Disclosures about Segments and Related Information” and “Operating Summary”. Information on oil and gas reserves is contained in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report.
 
ExxonMobil has a long-standing commitment to the development of proprietary technology. We have a wide array of research programs designed to meet the needs identified in each of our business

 

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Item 6.    Selected Financial Data.

 

		Years Ended December 31,
		2010  (1)				2009				2008				2007				2006
		(millions of dollars, except per share amounts)
Sales and other operating revenue (2)		$	370,125			$	301,500			$	459,579			$	390,328			$	365,467
(2) Sales-based taxes included.		$	28,547			$	25,936			$	34,508			$	31,728			$	30,381
Net income attributable to ExxonMobil		$	30,460			$	19,280			$	45,220			$	40,610			$	39,500
Earnings per common share		$	6.24			$	3.99			$	8.70			$	7.31			$	6.64
Earnings per common share - assuming dilution		$	6.22			$	3.98			$	8.66			$	7.26			$	6.60
Cash dividends per common share		$	1.74			$	1.66			$	1.55			$	1.37			$	1.28
Total assets		$	302,510			$	233,323			$	228,052			$	242,082			$	219,015
Long-term debt		$	12,227			$	7,129			$	7,025			$	7,183			$	6,645

 

Undervalued-Stock.com issues BUY rating for Sysco Corp (SYY $26.70)

Undervalued-Stock.com stock ratings use the following factors:

•     a stable earnings history
•     price to earnings (P/E) ratio is below 10-year average
•     earnings growth over the past 10 years
•     credit rating
•     recession performance
•     price to book ratio is below historical average
•     competitive position
•     market share
•     successful business executions
•     business type and size

Sysco Corp (SYY $26.70) reported 4th quarter 2011 earnings of $0.57 per share on August 15, 2011.

Sysco Corporation (SYY) is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses. The company is headquartered in the Energy Corridor district of Houston, Texas.  Sysco, an acronym for Systems and Services Company, servicing over 400,000 customers which include a wide array of clientele, is the world's largest broadline food distributor. Management consulting is also an integral part of their services. As of July 2, 2005, the company operated 170 facilities throughout the United States and Canada. Most recently, Sysco expanded its operation into Ireland with the purchase of a local food distribution firm. The company was founded by Herbert Irving and John F. Baugh in 1969. The company became public on March 3, 1970. On July 20, 2009, Fortune magazine ranked Sysco #204 in the annual Fortune 500 companies in world based on sales volume. On May 3, 2010, Fortune Magazine ranked Sysco as the 7th largest Fortune 500 Company in Texas and 55th largest in the US by total revenue.  Sysco competes with national distributors U.S. Foodservice, Performance Food Group, and Edward Don and Company, as well as regional companies such as Gordon Food Service, Ben E. Keith, Maines Food and Paper, and local foodservice distributors.  Sysco is also the largest non-oil related company in Houston and the 3rd largest non-oil related company in Texas (Behind AT&T and Dell).  Source: Wikipedia

ANNUAL REPORT (10-K) EXCERPT

Overview
 
Sysco Corporation, acting through its subsidiaries and divisions, is the largest North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. We provide products and related services to approximately 400,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
 
Founded in 1969, Sysco commenced operations as a public company in March 1970 when the stockholders of nine companies exchanged their stock for Sysco common stock. Since our formation, we have grown from $115.0 million to $39.3 billion in annual sales, both through internal expansion of existing operations and through acquisitions.

Item 6.

Selected Financial Data

 

		Fiscal Year
						2010
		2011				(53 Weeks)				2009				2008				2007
		(In thousands except for per share data)
Sales		$	39,323,489			$	37,243,495			$	36,853,330			$	37,522,111			$	35,042,075
Operating income			1,931,502				1,975,868				1,872,211				1,879,949				1,708,482
Earnings before income taxes			1,827,454				1,849,589				1,770,834				1,791,338				1,621,215
Income taxes			675,424				669,606				714,886				685,187				620,139
Net earnings		$	1,152,030			$	1,179,983			$	1,055,948			$	1,106,151			$	1,001,076
Net earnings:
Basic earnings per share		$	1.96			$	1.99			$	1.77			$	1.83			$	1.62
Diluted earnings per share			1.96				1.99				1.77				1.81				1.60
Dividends declared per share		$	1.03			$	0.99			$	0.94			$	0.85			$	0.74
Total assets		$	11,385,555			$	10,313,701			$	10,148,186			$	10,010,615			$	9,475,365
Capital expenditures			636,442				594,604				464,561				515,963				603,242
Current maturities of long-term debt		$	207,031			$	7,970			$	9,163			$	4,896			$	3,568
Long-term debt			2,279,517				2,472,662				2,467,486				1,975,435				1,758,227
Total long-term debt			2,486,548				2,480,632				2,476,649				1,980,331				1,761,795
Shareholders’ equity			4,705,242				3,827,526				3,449,702				3,408,986				3,278,400
Total capitalization		$	7,191,790			$	6,308,158			$	5,926,351			$	5,389,317			$	5,040,195
Ratio of long-term debt to capitalization			34.6	%			39.3	%			41.8	%			36.8	%			35.0	%

 

Target Corp (TGT $49.34) reported 2nd quarter 2012 earnings of $1.03 per share on August 17, 2011.  Undervalued-Stock.com issues buy rating.

Target Corporation, doing business as Target, is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart.  The company is ranked at number 30 on the Fortune 500 as of 2010 and is a component of the Standard & Poor's 500 index. Its bullseye trademark is licensed to Wesfarmers, owners of the separate Target Australia chain.  Unknown to many, Target Furniture is an official Target store.  The company was founded in 1902 as the Dayton Dry Goods Company, though its first Target store was opened in 1962 in nearby Roseville, Minnesota. Target grew and eventually became the largest division of Dayton Hudson Corporation, culminating in the company being renamed as Target Corporation in August 2000. On January 13, 2011, Target announced its expansion into Canada. Target will operate 100 to 150 stores in Canada by 2013, through its purchase of leaseholds from the Canadian chain Zellers.  Source: Wikipedia

Undervalued-Stock.com stock ratings use the following factors:

•     a stable earnings history
•     price to earnings (P/E) ratio is below 10-year average
•     earnings growth over the past 10 years
•     credit rating
•     recession performance
•     price to book ratio is below historical average
•     competitive position
•     market share
•     successful business executions
•     business type and size

CISCO SYSTEMS, INC. stock selling near 52-week low

Cisco Systems, Inc. (NASDAQ: CSCO, SEHK: 4333) is an American-based multinational corporation that designs and sells consumer electronics, networking, voice, and communications technology and services. Headquartered in San Jose, California, Cisco has more than 70,714 employees and annual revenue of US$ 40.0 billion as of 2010. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ 100 Index and the Russell 1000 Growth Stock Index.^[4] By most measures (e.g., revenue, market capitalization, number of employees) Cisco is one of the world's biggest technology corporations.

WAL-MART STORES, INC. ANNUAL REPORT 2010

TESORO CORPORATION ANNUAL REPORT 2010

ITEM 6.

SELECTED FINANCIAL DATA

		Years Ended December 31,
		2010				2009				2008				2007(a)(b)				2006(b)
		(Dollars in millions except per share amounts)
Statement of Operations Data
Total Revenues		$	20,583			$	16,872			$	28,416			$	21,976			$	18,061
Net Earnings (Loss)(c)		$	(29	)		$	(140	)		$	278			$	566			$	801
Net Earnings (Loss) Per Share:
Basic		$	(0.21	)		$	(1.01	)		$	2.03			$	4.17			$	5.89
Diluted		$	(0.21	)		$	(1.01	)		$	2.00			$	4.06			$	5.73
Weighted Shares Outstanding (millions):
Basic			140.6				138.2				136.8				135.7				136.0
Diluted			140.6				138.2				139.2				139.5				139.8
Dividends per share		$	0.00			$	0.35			$	0.40			$	0.35			$	0.20
Balance Sheet Data
Current Assets		$	2,928			$	2,223			$	1,646			$	2,600			$	2,811
Property, Plant and Equipment, Net		$	5,170			$	5,190			$	5,081			$	4,780			$	2,687
Total Assets		$	8,732			$	8,070			$	7,433			$	8,128			$	5,904
Current Liabilities		$	2,496			$	1,889			$	1,441			$	2,494			$	1,672
Total Debt(d)		$	1,995			$	1,841			$	1,611			$	1,659			$	1,046
Stockholders’ Equity		$	3,215			$	3,087			$	3,218			$	3,052			$	2,502
Current Ratio			1.2:1				1.2:1				1.1:1				1.0:1				1.7:1
Working Capital		$	432			$	334			$	205			$	106			$	1,139
Total Debt to Capitalization(d)			38	%			37	%			33	%			35	%			29	%
Common Stock Outstanding (millions of shares)			143.2				140.4				138.4				137.0				135.8
Book Value Per Common Share		$	22.45			$	21.99			$	23.25			$	22.28			$	18.42
Cash Flows From (Used In)
Operating Activities		$	385			$	663			$	716			$	1,322			$	1,139
Investing Activities			(295	)			(436	)			(610	)			(2,838	)			(430	)
Financing Activities(d)			145				166				(109	)			553				(163	)
Increase (Decrease) in Cash and Cash Equivalents		$	235			$	393			$	(3	)		$	(963	)		$	546
Capital Expenditures		$	287			$	401			$	619			$	789			$	453

(a)		Our financial results include the results of our Los Angeles refinery and Shell and USA Gasoline retail stations since acquisition in May 2007.
(b)		Share and per share amounts have been adjusted to reflect our May 2007 two-for-one stock split.
(c)		Net earnings (loss) included the following pre-tax items that affect the comparability of the periods presented. During 2010, we recorded approximately $67 million from insurance recoveries and $27 million in charges directly related to the April 2, 2010 incident at our Washington refinery and a $48 million gain from the elimination of postretirement life insurance benefits for current and future retirees. During 2009, we incurred a $43 million goodwill write-off in our refining segment and reduced inventories resulting in a last-in-first-out (“LIFO”) liquidation or reduction in cost of sales of $69 million. During 2008, we incurred a $91 million bad debt charge, reduced inventories resulting in a LIFO liquidation or reduction in cost of sales of $138 million and received net refunds of $50 million from the Trans Alaska Pipeline System associated with our protest of prior year intrastate rates. During 2006, we incurred charges of $28 million for termination of a delayed coker project at the Washington refinery.
(d)		During 2009, we issued $300 million in senior notes for general corporate purposes and during 2007 we issued $500 million in senior notes primarily to fund the acquisition of the Los Angeles refinery. Total debt includes capital lease obligations.

Kenneth Fisher Provides Insightful Analysis of Stock Market (Video)

http://www.bloomberg.com/video/65780868/

The Dogs of the Dow investment strategy

The Dogs of the Dow is an investment strategy popularized by Michael O'Higgins, in 1991 which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price.

Proponents of the Dogs of the Dow strategy argue that blue chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company; the stock price, in contrast, fluctuates through the business cycle. This should mean that companies with a high yield, with high dividend relative to price, are near the bottom of their business cycle and are likely to see their stock price increase faster than low yield companies. Under this model, an investor annually reinvesting in high-yield companies should out-perform the overall market. The logic behind this is that a high dividend yield suggests both that the stock is oversold and that management believes in its companies prospects and is willing to back that up by paying out a relatively high dividend. Investors are thereby hoping to benefit from both above average stock price gains as well as a relatively high quarterly dividend. Of course, several assumptions are made in this argument. The first assumption is that the dividend price reflects the company size rather than the company business model. The second is that companies have a natural, repeating cycle in which good performances are predicted by bad ones.

Source:

http://en.wikipedia.org/wiki/The_Dogs_of_the_Dow


‘Dogs Of Dow’ 2011

AT&T (T)
Verizon (VZ)
Pfizer (PFE)
Merck (MRK)
Kraft (KFT)
Johnson & Johnson (JNJ)
Intel (INTC)
DuPont (DD)
McDonald’s (MCD)
Chevron (CVX)

Source:

http://blogs.barrons.com/focusonfunds/2011/01/06/cs-dogs-of-dow-2011-includes-att-verizon-kraft/?mod=yahoobarrons

Laszlo Birinyi says the U.S. stocks rally that began in March 2009 may produce bigger gains than the technology boom of the 1990s, if history is a guide.

Birinyi, who was one of the first money managers to advise buying American equities as they bottomed almost 22 months ago, said yesterday that the Standard & Poor’s 500 Index may increase to 2,854 on Sept. 4, 2013, based on the average size of advances. That requires a 322 percent surge from the low of 676.53 in March 2009, beating the 302 percent rally during the bull market of October 1990 to July 1998.

Given the length of the advances that began in 1962, 1982, 1990 and 2002, the current rally should continue another 32 months, he said, citing the average duration. Historical precedent shows gains are largest in the first and last quarters of bull markets, according to research conducted by Westport, Connecticut-based Birinyi Associates Inc. The final quarter may start in July 2012 and generate gains of 52 percent, Birinyi said in yesterday’s research report.

Source:

http://www.bloomberg.com/news/2011-01-04/birinyi-says-s-p-500-may-reach-2-854-by-september-2013-if-history-is-guide.html?nstrack=sid:4863407|met:300|cat:0|order:2

Faber Says Long-Term U.S. Treasuries Are `Suicidal' Investment

Marc Faber, who advised investors to buy U.S. stocks in March 2009 as the Standard & Poor’s 500 Index began a rally of as much as 86 percent, said U.S. Treasuries are a “suicidal” investment.

Government bonds are likely to decline, said Faber, who publishes the Gloom, Boom and Doom report. After bottoming in December 2008, the 10-year Treasury yield rose as high as 3.9859 percent in April on government measures to stimulate the economy. Concern about a second recession in three years sent yields lower through October.

“This is a suicidal investment,” Faber said in a telephone interview from St. Moritz, Switzerland. “Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.”

Source:
 
http://www.bloomberg.com/news/2010-12-30/faber-says-long-term-u-s-treasuries-are-suicidal-investment.html