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The cost structure at big oil companies has grown dramatically, Jim Chanos says, with the cost...

The cost structure at big oil companies has grown dramatically, Jim Chanos says, with the cost of finding a marginal barrel "up and rising - a very, very negative trend." Singling out Exxon Mobil (XOM -0.8%), "it’s still not generating enough cash to cover all its cash needs," he says. "There’s a reason the stock has lagged despite its being the bluest of blue chips."
Comments (2)
  • themisanthrope
    , contributor
    Comments (120) | Send Message
     
    Bunk. Let the reader comments at the destination suffice.

     

    I almost wish the story would get some legs and drive the share price down. I wouldn't mind adding some more XOM to my existing (long) position at a discount.
    18 Oct 2011, 08:07 AM Reply Like
  • Scrapette
    , contributor
    Comments (21) | Send Message
     
    Ok, first, Chanos is a famous bear on on oil. He will pick on ANY little thing to prove his point, which he doesn't, but the point is, I'm chuckling at this. Here sits one of the FEW remaining fiscally sound remaining companies on our economic planet, and Chanos wants us to believe that because the costs of its product increase they will not be able to get a profitable price point on sales? This is only because he does not value that sales price point because he is bearish on oil! Let me be clear: if ANY...ANY company on the face of this planet can steward their solvency through rough waters, it is ExxonMobil. Period. If they cannot, then we as a planet of people are not long for this world. But these current waters are not even rough, except to Chanos' wishful thinking.

     

    How low must he feel he has to go to send out cheap shots, HOPING to disrupt trust in a proven guardian of investment. It is as if nothing else troubling or traumatic ever happened to this company between now and the 1920's. The only way Chanos will be made happy is if XOM suddenly changed its BOD and filled it with the likes of the jerks who pilfered Wall Street. This company is very different and always has been. And that is what irks Chanos so much.
    18 Oct 2011, 03:59 PM Reply Like
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