COP - Occidental's Big Mistake: Overpaying For Resources In An Age Of Energy Abundance
Occidental Petroleum's (OXY) stock has been heading lower ever since it started bidding for Anadarko Petroleum (APC). It's now trading at the same level it was back in May of 2007. Interestingly enough, so is Exxon Mobil (XOM). And for the same reason: overpaying for resources in an age of energy abundance (in Exxon's case, it was a $40 billion deal to buy XTO).
OXY should have realized that in an age of "no moat" energy investing (see my article Energy Companies' Big Problem? There's No Moat), it