Chevron Corporation (NYSE: CVX) is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, includinghydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's largest oil companies; as of 2014, it ranked third in the Fortune 500 list of the top US closely held and public corporations and sixteenth on the Fortune Global 500 list of the top 500 corporations worldwide. It was also one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s to the 1970s. Chevron's downstream operations manufacture and sell products such as fuels, lubricants, additives and petrochemicals. The company's most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South Africa. In 2010, Chevron sold an average 3.1 million barrels per day (490×103 m3/d) of refined products like gasoline, diesel and jet fuel. Chevron's alternative energy operations include geothermal, solar, wind power, biofuel, fuel cells, and hydrogen. In 2011–2013, the company planned to spend at least $2 billion on research and acquisition of renewable power ventures. Chevron has claimed to be the world's largest producer of geothermal energy. In October 2011, Chevron launched a 29-MW thermal solar-to-steam facility in the Coalinga Field to produce the steam for enhanced oil recovery. The project is the largest of its kind in the world.
Reported before open today (4/29/16) Earnings: EPS -$0.39 Revenue $23.55B Estimates: EPS -$0.20 Revenue $21.43B Down 1.27% in pre-market
Upcoming dividend information: Ex-Div-Date: 11/16/16 Payment Date: 12/12/16 Dividend: $1.08 Current Price: $104.78 Annual Yield: 4.08%
Analyst Upgrade/Downgrade Update Brokerage firm: CLSA Change: Upgrade Previous Rating: Outperform Current Rating: Buy Previous Price Target: N/A Current Price Target: N/A
Waiting for a long at 108. The short-term $1-box by 1-box-reversal point and figure count gives a target of $108. The longer term $1-box by 3-box-reversal count gives a target of $148. At $108 the CVX dividend yield is 4.00% which should be attractive for the divvy players.
Further work on CVX: Short-term P&F objective = 108 4.00% Dividend yield @ 108 50% Retracement = 108.32 AB=CD objective = 107.20 61.8% Retracement = 105.86 (1.272)AB =CD objective = 105.23 Long-term P&F objective = 148 Daily Sticks:
Update on CVX using a $1.50 box size for point and figure work gives short-term targets of $106.50 and long-term target of $135. The $1.50 box size is more consistent with a 20-box average true range. Also, the long term price objective of $135 matches a historic top (July 2014). Note also that for the short-term counts, the price fell out of the most recent TR right on cue; that is, right after building enough cause to match the base count short-term objective of 106.50. Daily Vertical Chart:
Continuing the waiting-to-buy saga from above: CVX got back into the trading range but has since fallen out again, this time with more cause being built and a new downside price objective of $102, which is right into the midst of the next lower and much longer, and much more resistant trading range. Note: CVX pays dividends of 1.08/qtr or 4.32/yr yielding 4.0% at a price of $108. Last price 107.36. At a price of $102 it would yield 4.235%.
Well another month has gone by and I'm still stalking Chevron. It is no surprise that Scotiabank had an agenda. Lloyd's post date corresponds to the bar right after the "g/c" peak-low shown on my chart below. Based on a $1.50-box by 1-box-reversal point and figure, I'm showing a target as low as $99. However, if it breaks below this latest range then I only get enough stepping-stone cause for a drop to $103.50. Just have to keep monitoring and expect to sit-up and pay attention somewhere under 103.50 I guess. That wide price drop on Fryday is a little suspicious, being it was on only slightly higher volume than the previous 2 weeks of volume....could bounce and build more cause for a lower target. It did however come into this price area on 6.9 million shares versus 6.5 million at "e"....and it did not take out that 105.82 spring-low, suggesting that on Monday, the dumb money may be selling with new vigor after reviewing their P&Ls over the weekend and reading the news on how bad CVX is performing. Also, I don't think the quarterly $1.08 ex-dividend date has been reached yet so I'd expect at least another $1 drop after that. At $103 CVX yields a 4.2% annual dividend.
Okay, we are getting closer. If this breaks from here it should see support come in at 103. If it bounces off the demand line of the TR then it will have built more cause for a lower objective. Daily sticks:
Downside potential is $96. Upside potential $114. The $64,000 question is what is this trading range, re-distribution or accumulation. The trend is down, so demand needs to prove itself with a sign-of-strength (big buying bar with high volume) in order to take the long side.
Bot one lot @ 104.05 near the close. It is either breaking down to $93 or turning up to $119. The close wasn't so good, but I liked that it tested the lows and closed above them on lighter volume. Also, it has been unable to get down to the demand line of the downtrend channel. Need to see a sign of strength now.
Pyramided with a second lot @ $106.43. Position is now 2 lots with average price of $105.24. Today's gap down on the drop in crude prices was met with CVX buying all day long and into the close. There is enough cause built for a move to $120.
The ER and CC take place tomorrow morning. Currently up 97 cents on this as of today's close; average cost is $105.24. So I decided to lock in a win and banked a $1.00 credit today by selling $106-strike covered-calls expiring tomorrow. So if it goes up tomorrow my shares get called for $106 for which I bank a 76-cent gain and with the credit I've already banked on the calls my effective sell price would be $107 for a total gain of $1.76. If it goes down I keep the $1 credit on the calls and I still own the shares from $105.24. What I'd like to see is a decent report but a down day for the crude oil and thus for CVX a good long term outlook but a flat to down day. Daily:
Well CVX did better on the ER than I was expecting. The trouble with selling covered calls is that although they locked in my profit even if the underlying price were to fall, it limited my upside. In my case I sold 106s for $1.00 giving me an effective ceiling of $107. My average buy cost was 105.24. But, the high of day was $109.13. So, I probably could have gotten 108.75 or so. As it turned out, I did better than the 107 ceiling by managing it intraday to unwind (buy back) the calls at $1.83 (underlying $107.83) and then a little later sold the underlying at $108.23. The close was 108.12. In hindsight, I maybe could have done better had I bought back the calls as soon as the underlying rose above $107 and then trailed a stop to sell the underlying. Daily: Friday after ER of July 28, 2017
