Seeking Alpha

Statoil, Total hit by downgrades at RBC Capital

  • Statoil (STO -1.6%) is downgraded to Sector Perform from Top Pick at RBC Capital based on valuation; STO has climbed 33% during the past 12 months, and having reached its price target, RBC thinks it's a good time to take profits even as it regards STO as a well managed, tightly run outfit which continues to transform into a truly international major focused on the upstream.
  • At the same time, RBC downgrades Total (TOT -1%) to Sector Perform from Outperform, believing the recent pace of share price appreciation looks hard to sustain until closer to delivery from 2016.
Comments (3)
  • Michael Fitzsimmons
    , contributor
    Comments (9719) | Send Message
     
    Sell now? Not me...I want those dividends and I want to own the company with arguably the best exploration results of the last several years.
    15 May 2014, 04:42 PM Reply Like
  • TedDarling
    , contributor
    Comments (29) | Send Message
     
    Isn't the stock down today only by virtue of the fact that it trades ex-dividend in the amount of $1.18 (NOK 7) today?
    15 May 2014, 04:55 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9719) | Send Message
     
    You are exactly right Ted, today is the ex-div date:

     

    http://bit.ly/1nU8S5E

     

    My comment was more referring to the fact that STO will transition to quarterly payouts this year. This means STO will make two additional dividend payouts this year. So I think the historical sell-off and trickle down of the stock price after the yearly dividend ex-div date won't take place this year, at least not to the extent it as in past years. So despite the run-up in the share price (which appears to be the reason for the downgrade), I think it's a great time to own STO.
    15 May 2014, 07:06 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs