Question

In: Finance

why would you invest in ExxonMobil corporation? estimate what ExxonMobil corporation will be like in 5...

why would you invest in ExxonMobil corporation?

estimate what ExxonMobil corporation will be like in 5 years from now.

what do you think the stock market for ExxonMobil corporation are going to be in the next five years.

Solutions

Expert Solution

INVESTMENT IN EXXONMOBIL CORPORATION WILL BE BETTER THAN OTHERS.THE FOLLOWING ARE REASONS :

If you are like to invest in oil and natural gas industry, you should put this diversified global player on your shortlist.

These are the reasons:

1.DEMAND:

By growing population and our needs also to be very high and automatically the demand for renewable energy , oil and gas will increase .

2.DIVERSIFICATION :

To invest we look into one feature ,whether it is diversified or not . This company is operating multinationally and satisfying the customer needs all over world through the world recognized transportation facility.

3.DIVIDEND HISTORY :

We look into another feature is payment of dividend in the past and increase in the dividend payment every year and it is paying dividend in the increase trend.

4.DIVIDEND YEILD:

For this company the dividend yeild also from since 20 years in the increasing trend and this is also an important feature.

5.DEBT MATTERS:

EXON is still in rock - solid financial condition and however it is used debt to fund dividend and in capital spending in very small situations when there are tight cash situations only .

6.BETTER THAN THE REST :

EXON is financially strong ,which is great ,and one of the leading pioneers in oil and gas business. We may think this is better than the rest organizations to invest.

A GOOD COMPANY AND A GOOD STOCK

I think it is pretty clear that i believe exon is very strong and its price quotes in decent matters in market and investors are encouraged to invest more because there is less amount of risk.

In the upcoming 5 years ,this company is undertaking a new project which was not taken by anyone in the recent years.No one has ever upgraded heavy fuel oil streams into group 2 lube base stocks.

Its an industry first and is made possible through proprietory process and catalyst technology . its the largest six major refining factories we have.

Due to its technology advantage ,is expected to generate high teens of return in the future.

In stock market , in future 5 years the quotation of prices of this company will be more than prevalent prices , so it is better to invest in this company.


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