Peter H. Havens is the Chairman and Founder of Baldwin Management. In a recent exclusive interview with the Wall Street Transcript, he details his investment criteria for picking the best large multinational oil stock among Royal Dutch Shell (ADR), Exxon Mobil (NYSE:XOM) or Chevron (NYSE:CVX).
“Royal Dutch, maybe at a less-than-opportune time, made a very big acquisition in buying BG Group, which levered up their balance sheet. Now, according to our analysis, we believe that the dividend is safe, especially when oil is around $50 a barrel. When it was down around $27 a barrel, there was probably good reason to scratch one’s head, and think more and more about the safety of that dividend. But with the BG acquisition, Shell recast itself, dramatically increasing its exposure to the LNG business, which we find very attractive…And so you’re getting an attractive major international oil company at a pretty cheap price. Certainly, their yield is a lot higher than Exxon Mobil’s (NYSE:XOM) or Chevron’s (NYSE:CVX).”
Baldwin Management reveals several other recent portfolio picks and demonstrates the ability for identifying superior stock selection in a chaotic trading environment.