Occidental Pete Corp Del (NYSE:OXY)

CAPS Rating: 4 out of 5

Principal businesses consist of two industry segments. The oil and gas segment explores for, develops, produces and markets crude oil and natural gas. The chemical segment manufactures and markets basic chemicals, vinyls and performance chemicals.

Recs

1
Player Avatar blesto (31.64) Submitted: 11/27/2012 7:04:20 AM : Outperform Start Price: $73.84 OXY Score: +5.63

http://wiki.fool.com/The_Graham_Number
Formula: Fair value=Sqrt(EPS*BV*22.5) I expanded it a little by also using EPS Normalized and Tangible BV
Scottrade data good as of Sep 30th
GNV with EPS & BV: Sqrt(7.28 * 49.96 * 22.5)= $90.46
GNV with EPS Normalized & TangBV: Sqrt(8.49 *49.96 * 22.5)=$97.59
GNVR: $90.46 to $97.59

Also I'd like to thank AnsgarJohn http://caps.fool.com/Pitch/OXY/6561403/sell-at-87-graham-number-a-hre.aspx
For the Gurufocus article. The part that was one of the most important reasons to me for wanting to own a company is the management's incentives are aligned with shareholders' interests.

Quote: "OXY has had minimum stock ownership guidelines for its senior management since 1996. The chairman and chief executive officer need to own stock equivalent in value to 10 times that of base salaries; while executive vice presidents and other vice presidents need to own stock equivalent in value to three times and two times that of base salaries respectively. Additionally, named executive officers are required to retain a number of shares equal to 50% of the net after-tax shares received pursuant to equity awards granted after 2008 for at least three years after the vesting date. All executive officers and directors as a group own 1.4% of the outstanding common stock in OXY.

OXY's executive compensation program is based primarily on long-term performance-based awards paid at least 50% in shares of company stock. A relatively small portion of executive compensation is paid on an annual basis and in cash. The executive compensation program supports the long-term alignment of executive and stockholder interests by using total shareholder return over 3 years as the performance metric for approximately 80% of executive long-term awards. Payouts are determined by OXY's total shareholder return ranking within a peer group of 12 companies, with a maximum payout made only if OXY ranks first and no payout if OXY ranks in the bottom 3 companies. Key executive compensation represented 1.5% and 2.9% of net income in 2011 and 2010 respectively." Unquote.

Outperform

Report this Post 2 Replies
Member Avatar blesto (31.64) Submitted: 11/27/2012 9:20:58 PM
Recs: 0

Oh, it's really quite simple. Probably no need for a whole blog post.
In my profile you you can see I signed up in June 2008. Made my first CAPS pick in Sept of 2009.
I have a profile I started in 2001 and just disappeared in 2003 because
all the talk on the boards about the Fool going to only being a pay for site. I liked the free.
The main message I got was buy what you know and buy to hold. I got my feet wet with DRIP investing. GE and Bell South.
I finally was able to open a brokerage account. I decided on Scottrade. When I went to their local branch, in the wait area was a whole stack of the Motley Fool's 13 steps paperbacks(the original 13 steps I like to call them now)
They let me have two copies. Gave one to a friend. I was reading everything I could and would peak into Fooldom every now and then, but I still didn't really know what I was doing. When I learned part of the Fool was still free I decided to join back up under this profile.
CAPS and bloggers! When I started picking you can see that stock of the day box and I thought I was supposed to make a pick of underperform or outperform, so I did. I wouldn't really know anything about those companies I basically flipped a coin making mostly ouperform picks. It was pure luck gaining AllStar status. Many of my negative score picks were at one time well into the positive. I'm learning how to let go or when to sell so to speak. This Graham Number stuff I started the middle of this year experimenting with in CAPS I think has brought my score out of the cellar. And I try to only pick divi payers.
I think the rising tide will lift all boats, so when Mr.Market rallies hopefully I'll be able to close out those poor picks in the positive or at least with a smaller negative score.
Some of CAPS is just knowing how to game the system. Heh! I've never been much of a gamer.
CAPS for me has been one of many educational tools for me at the Fool.
I know way more now and I have way more to learn.

Wow, I started to ramble. Instead of a CAPS blog I think I'll post this over in Randomness http://boards.fool.com/randomness-120641.aspx?mid=30368296
Feel free to stop by.

Member Avatar blesto (31.64) Submitted: 4/14/2013 2:34:22 PM
Recs: 0

Previous GNVR: $90.46 to $97.59
Updated GNVR: $79.61 to $93.77

Current start price:$73.84

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