what should i do with my exxon mobile stock?

Question

i inherited stock that stock from my grandfather about 7 years ago. Its gotten pretty high and i was wondering if i should just let it sit or take it out and invest in something else? anyone who has a background in this sort of thing would help. Thanks

Answer 1

While you are researching and deciding what to do with the stock, the very first thing I would do is to make sure that you've signed the stock up for a Dividend Re-Investment Program (DRIP). A DRIP takes the quarterly dividend that XOM pays and buys more stock. The longer you hold it, the more stock you'll end up owning.

As for selling or holding. Be advised if you sell you're going to have to pay capital gains come tax time, so you'll need to plan to cover the expense.

- If you NEED the money, take what you NEED and leave the rest for later.
- If you want to diversify (which you should do if you're not already), sell some percentage (less than 50%) and spread your risk into other sectors (either individual stocks or mutual funds).

In the long run, stocks go up, and there's only so much oil in the world and more and more people are using more and more of it. You have your own proof, in the 7 years you've owned the stock its gone from $35-40 per share to $70-something recently.

I have XOM (enrolled in DRIP) in my portfolio and will continue to add shares when the funds present themselves. I plan on keeping them for the long haul, who knows maybe my grandkids will be able to inherit from me.

Best of luck.

Answer 2

Exxon has gone up a lot this past year, while other energy companies are flat or down. I have read some articles that think that Exxon is too expensive and should be sold. My advice would be to sell Exxon and buy Chesapeake or Encana. I own both of these. They have gone down over the past year, and both are cheap. Chesapeake is a very well run company. If you want other ideas for investments, you can see what the best investors are buying and selling at http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 3

So Barry thinks that buying a stock that has gone down is good, while continuing to own a stock that goes up is bad? Hmm, think about that.

You may want to diversify, so that if Exxon does go down (and I don't think it will), you won't take such a hit. That doesn't mean selling all of it, but it does mean selling some of it. However, if it's gone up since you inherited it, you will have to pay long-term capital gains tax on it if you live in America.

To learn about stocks, I'd join a local investment club. They will teach you how to do research, and you'll have plenty of people to talk to, and they can recommend books as well. To find one, go to www.better-investor.com. Or you can read up on investing at www.fool.com. Or the Wall Street Journal has some good books on basic investing, or you can read Money Magazine or Kiplinger's Finance, too.

Good luck!

Answer 4

i agree with the last poster how many shares are we talking about? Say you have 100 shares I would sell 20-30 now and 20-30 more if the price drops to 70 flat. By now you are down to 50 if it drops to 65 sell half and down to 60 its gone.

What no one on here has yet to comment on is that the commiecrats are going after big oils profits in the form of serious taxation. Which makes me feel uneasy about this (and all energy shares)

as for Chesapeake that is a natural gas play and with the weather the way it is CHK is NOT a good move (besides I bought a few shares before Katrina and sold it when it broke 32) CHK is a good company but now isn't the time to buy that one either.

I would look more into financials and foreign plays (pending on the rest of your portfolio) than sticking to energy.

Answer 5

For openers the company is Exxon Mobil not Mobile. Your grandfather bought and held this champion company for a reason. I would keep it forever and that is probably what your grandfather would want you to do. If you don't an interesting (and probably depressing exercise) would be to compare your investment to holding Exxon Mobil, think your find the later did considerably better. Although this is just personal opinion.

Answer 6

Sell the exxon mobile stocks as they have been on a great rise lately since oil prices are going up. But with everything whats goes up must come down. And Exxon mobile dosen't look to far away from dropping in their share price as people are starting to demand lower fuel prices. Plus with hydrogen cars and other inventions which dont need oil there will sortly be less need for oil in the world

Answer 7

There is not enough information to answer your question.

If this is the ONLY company you have then you should sell 80% of your shares and buy at least 4 more ETFs, Mutual Funds or Stocks.

It's not wise to invest all your money in just one company.

On the other hand, if your Exxon Mobil stock is less than 20% of all your stocks then hold it for a few decades.

Answer 8

It depends how much money you have invested there.

If is a considerable money you can sell it and invest in other less risk business, like real estate (even though real estate is getting flat in some states, it will never go down - specially that the USA poppulation is going uo every year) and you could own it and rent.

Answer 9

I think you should keep this bluest stock in the world. You need to ask yourself serious questions.

1.) Why your grandpa chose XOM not others at first place?

2.) The world demand and supply dynamics on oil

3.) Geopolitical change

4.) Who is the lowest cost leader in integrated oil industry?

5.) Do you really need cash now?

If you answer "yes" to 5.), please sell it now. Otherwise, ride with me by setting up a monthly purchase plan via equiserve.com. You will be 10 times happier in 5 years.

P.S. I made commitment on my child's 529 plan in XOM with equiserve.com.

Answer 10

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