Part I
I think you should buy EXXON Mobil Corp. since it is the world’s largest publicly traded integrated oil company with $125 billion rising for next five years capital spending and net income after tax of $40.6 billion in 2007 which is the largest annual profit ever for a U.S. company as mentioned by Jad Mouawad in The New York Times. (The New York Times, February 1, 2008).
Part II
EXXON Mobil Corp. recently experiencing trouble in international arena with nationalization treats in Venezuela. In a recent article from Business Week, the author Peter Wilson says, Venezuelan President Hugo Chavez’s treats for EXXON Mobil Corp. to get out of business in Venezuela seems to be a bluff as U.S. is the biggest market for Venezuela’s oil exports and home for refineries that are specially equipped to handle Venezuela’s brand of heavy, high-sulfur crude. He also claims that finding any other customer for this kind of crude will be really hard for Venezuela and any embargo against U.S. and EXXON Mobil Corp. indirectly, would cause a bigger trouble for Venezuela than the U.S. since Venezuela supplies about 11% of U.S. oil, but the U.S. compensates almost all Venezuelan oil exports. (Business Week Online, February 11, 2008).
Thus, avoiding EXXON Mobil Corp. just because it has uncertainty in overseas might be a misperception since Exxon Mobil Corp. is one of the “blend” stocks that have characteristics of both growth and value stocks. Also, even though small and midcap companies has performed better for the first quarter of the year 2008, the large cap companies are expected to surprise the performance trends and outperform the smaller entities since there the valuation comes into scene. One of the most appropriate approaches for investors is recommended as lookin ...