graraps Posted June 14, 2007 Report Share Posted June 14, 2007 Hello all! Inspired by my first post , and the fact that my CFDs shot upwards today, got closed at midday (to reclaim half of last week's losses and save myself worrying about any triple-witching tomorrow) then climbed up even further, I'd like your views on European "national champion" oil companies. I find it a bit strange that people spend a lot of time talking about the likes of obscure Canadian drillers (who may have great upside if they make a major discovery and accordingly big risks if it doesn't materialise) yet (with the exception of BP) seem to have no interest in companies who are in both oil and gas, in many parts of the world (with the resultant diversification in risks and rewards), upstream and downstream, carry a massive amount of brand equity as well as the possibility of making a lot of money outside of their core activities (things like logistics, retail or even real estate). Some are even investing substantial amounts in renewables and so on.... Moreover, they are denominated in reasonably good currencies (well, perhaps the Yuan's better but the Euro and other European currencies seem decent compared to sterling or the US dollar), seem to pay reasonable dividends and, at least last time I checked (which was before today's substantial gains), are available at very attractive valuations (P/E under 12). Apart from the fact that they are too big to grow much bigger (especially considering the long-term decline of oil and gas reserves) is there a catch and/or some important point(s) that I've missed? Would also appreciate if anyone could have a go at their charts, too. I am not experienced enough to "naturally" read them and I'm a HR person by training (please stop booing!) and my theoretical knowledge is based solely on a bit of Quantitative Analysis for dissertations etc and the Economics 1 second-year module. Link to comment Share on other sites More sharing options...
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