Tuesday, July 27, 2010

Occidental's Earnings Looking Great

Occidental Petroleum (OXY) is one of those companies that's difficult not to like.  It's Q2 earnings are up an impressive 56% thanks in no small part to the high price of oil (lately in the high $70s). 

I would be more than happy to open a long position in OXY at a price significantly less than $80/share, where it's been hanging for some time.  It's priced a bit too high for superior long term returns, but it has healthy fundamentals.  The last 12 month's ROE of just under 13% is pretty close to its ten-year norm.  This one stays on my radar.

Full disclosure:  No position in OXY.