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Occidental is a Strong Candidate for Capturing Crude Gains

David Becker
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Occidental Petroleum Corp (NYSE:OXY) engages in the exploration and production of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream and Marketing.

On October 29, 2013, the company reported third-quarter earnings of $1.97 per share, which beat the consensus of analysts’ estimates by $0.09. During the past year the company’s stock is up approximately 20.00% but the 3% dividend yield gives investors an extra-boost. Libyan oil ports are set to reopen on an agreement for greater regional oversight. The closed ports accounted for more than half of Libya’s oil exports. Occidental exports a good portion of this oil from Libya.

The 52-week range for the stock price is $ 74.82 – $99.42, and it hit a new fresh 52-week high in October. Earnings per share increased 16% quarter over quarter but the three year growth rate of earnings declined 4%. Sales increased 8% quarter over quarter and the 3-year growth rate of sales increased 9%.

Recent insider purchased of the company should give investors’ confidence. Carlos Gutierrez purchased 5,000 shares on December 16, 2013 for a total value of 456,000. During December a total of 7k shares were purchased by insiders.

The technical picture is shows a stock that is coming off recent highs and consolidating the robust gains seen in 2013. Support is seen near the Bollinger band low (2-standard deviations below the 20-day moving average), and the 200-day moving average near 89. Resistance is seen near the Bollinger band high at 98.60. The decline in price was accompanied by a declining accumulation distribution line which means that the selloff was unaccompanied by robust volume. The short term MACD (moving average convergence divergence index) generated a buy signal.

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