Occidental Petroleum: No Longer Cheap - Buy Buffett's Pick At The Next Dip

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  • OXY paid $8.1B of debts YTD and is on track to reducing it to nearly $15B by the end of the year.
  • By then, OXY would likely reinstate its excellent dividend yields while also authorizing more share buyback programs.
  • However, given the recent stock recovery, we advise some patience before buying at a price target of below $50, or $40, if we are lucky.
  • Investors with higher risk tolerance could definitely nibble here.

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Investment Thesis

Occidental Petroleum Corporation (NYSE:OXY) has shown much success in its strategic capital allocation during the recent windfall for the oil and gas industry. Moreover, given its wise decision to aggressively deleverage its massive debts assumed during its Anadarko acquisition

This article was written by

Juxtaposed Ideas profile picture
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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