Question

Will you decide whether or not to invest in its stock with Exoon mobile and why.

Answer 1

Exxon Mobil is an American multinational oil and gas company which is formed with the merger of exxon and mobil. It is the world largest publicly traded oil and gas company.

I will be trying to invest in this company because this company is the largest producer of oil and gas in the entire world and it is also corrected significantly from its height of almost 80 and it is almost trading in the range of 30, so I will be getting this discount just due to fear of investors to keep themselves expose into oil and gas industry, and hence I will be getting a significant amount of discount on purchase of this years and if I am helping this share with a price to earning multiple of 15, I am getting almost $50 in next year so I will be looking at buying all the shares which are trading at undervalued price just because of the fear of coronavirus.

if this share is currently trading below the intrinsic value, then I will be up for buying this share because these are highly traditional share which can have an upside if there is an improvement in sentiment all across the larger markets and these improvements are just not related to few companies.

I will be looking to buy this share in order to gain significant amount of upside because this share is currently undervalued to its global peers and it is also undervalued to its intrinsic value, so I will be buying in order to gain a significant amount of upside with the target price of $50.