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JimVanMeerten (62.28)

Chevron keeps pumping profits

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December 29, 2010 – Comments (0) | RELATED TICKERS: CVX

This morning I added Chevron (CVX) to the Barchart Van Meerten New High portfolio.  I think that with the Gulf drilling moratorium ending and CVX's new processing of shale gas the future looks bright.  Between the capital appreciation and the generous and steady dividend long term investors should see a annual total return in the 15% range for the next 5 years.

Chevron is the fifth-largest integrated energy company in the world. Headquartered in San Ramon, California, and conducting business in approximately 180 countries, this highly competitive corporation is engaged in every aspect of the oil and natural gas industry, including exploration and production; refining, marketing and transportation; chemicals manufacturing and sales; and power generation.

The stock came to my notice when I used Barchart to screen for stocks hitting the most frequent new highs.  The stock hit 18 new highs and appreciated 12.52% in the last month earning it a 96% Barchart technical buy signal. The stock trades around 91.99 which is well above its 50 day moving average of 85.04.  The Relative Strength Index is 74.25% and still rising so there is an indication that the price rise will continue.

Wall Street brokerage analysts consider CVX a core position and have published 15 buy and 6 hold recommendations for their brokers to push to clients.  No negative reports were noted.  The consensus is for an increase in sales of 21.80% next year and a 5 year annual compounded earnings per share increase of 18.63% per annum.  That with a 3.60% dividend rate look promising.

The general investor has not let this stock go unnoticed with the CAPS members on Motley Fool voting 3,457 to 158 that the stock will beat the market.  The more experienced All Stars are in agreement with a vote of 957 to 24.  Fool notes that all 22 of the recent Wall Street columnists articles have been positive.

Although this stock is on my list for recent price movement please consider:

1 - 96% Barchart technical buy signal

2 - 18 new highs and up 12.52% in the last month

3 - Wall Street buy recommendations based on projections of double digit increases in both sales and earnings

4 - Wide and positive general investor sentimentRecord of increasing dividend payments.


Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog. 

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