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$77.51 0.49 (0.64%)
7/3/2008 1:02 PM

Royal Dutch Shell (RDS-B)

CAPS Rating:
***

The Company consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products and Chemicals. It also has interests in other industry segments such as Renewables and Hydrogen.

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Avatar onneke1 (< 20) Submitted: 4/12/07 2:48 PM : Outperform Start Price: $64.81 RDS-B Score: 32.24

company is undervalued still due to last few years problems, which are basically solved now. shareholders litigation are being solved at the moment. purchase of all stock of shell canada has been completed which means the total proven reserves hv grown considerable thanks to the enormous sand-oil fields which are now in rd posession. company is a steady grower and payer of dividends. is presently grossly undervalued.

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Avatar ohjammer (< 20) Submitted: 8/02/07 10:48 AM

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Reserves that are being added, like in many of the majors, are very expensive to produce or are in politically suspect areas. Case in point, Exxon has found that the easiest way to get tar sand oil is to mine it off the surface - Shell produces its tar sands with steam flood from 900 - 1000 foot deep ---- and then you have to make it into real petrochemical with exotic refining. I expect greater success in the hyperdeep Gulf of Mexico, but this will be the world's dirtiest gas.

Companies like BP and Shell have the skill and the reputation to make the big deals (e.g., LNG in Iran, profit sharing agreements in Siberia) - but are susceptible to major reversals due to politics - e.g. Sakhalin.

If you believe in Shell, then look for it to replace reserves more efficiently with its Exploration department in safer arenas, something that it still has not turned around? This is the performance indicator to watch.

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