Subject: Re: OXY
The interesting thing about OXY is its leverage. Right now everyone has a bearish view on the oil price and OXY is being punished for being highly leveraged. If oil price goes back up, the leverage will suddenly becomes good for OXY again. If oil price stays here, OXY is going to be able to execute its plan to deleverage and stock could double in 3 years. If oil price goes down, then the CEO might be shown the door or try to get Buffett rescue them again.

Wolfe has a research arguing that although the current futures market is backwardation, the OPEC’s intervention will always keep near term oil price high, thus they are one of the future seller side analyst that has a buy rating on OXY.

This weekend Franci Choi’s 13F filing shows he bought OXY and OXY wt as the only new holding.

However people are wondering why Buffett has not been buying. Some thinks he is going to bid for the whole company despite he did say he won’t in the annual meeting.