Tuesday, February 23, 2016

Recent Buy Sharebuilder III

Recent Buy Sharebuilder III

With oil still down and who knows if we have reach the bottom of barrel of oil as of last week? But as long term investor I am not really worried about market volatility, rather I am concentrated in building a long term portfolio of funds that will cover my living expenses one day. With each passing day I will be adding to my funds to build sustainable long term dividend to cover each month expenses to a point were it wil cover my expenses.

With that been said it was time to add to oil mop any again. I believe I have a decent start with both Chevron and Exxon Mobil. But after selling Conocophillips in late December, it was time to add another giant to contribute to my funds of stocks. After review BP, RDS.A, COP,XOM, CVX, and TOT; it was an easy choice due to its history of maintains and raising dividends despite past market volatility.

Without further ado here is what I purchase on February 16, 2016:

Action: Buy
Symbol: RDS A
Description: ROYAL DUTCH SHELL PLC ADR A
Quantity*: 6 shares
Execution time: 02-16-2016 15:38 ET
Price: $45.33
Total Commissions & Charges: $6.95
Total Transaction Amount: $278.93
Trade Settlement Date: 02-19-2016

This will add $22.56 to my 12 month forward dividend income to $327.95

Here is a description from the shell website:
Shell is a global group of energy and petrochemical companies.

Our operations are divided into five businesses: Upstream, Integrated Gas, Unconventional Resources, Downstream, and Projects & Technology.

In Upstream focus on exploration for new liquids and natural gas reserves and on developing major new projects where our technology and know-how add value for resource holders.

In Integrated Gas, focus on liquefying natural gas (LNG) and converting gas to liquids (GTL) so that it can be safely stored and shipped to markets around the world.

The Unconventional Resources organisation is responsible for activities in heavy oil and oil and gas shales in North America.

In Downstream, focus on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. In addition, we produce and sell petrochemicals for industrial use worldwide.

Projects & Technology business is responsible for delivering new development projects and the research and development that leads to innovative and low-cost investments for the future.

From morning start evaluation: Once finalized, the BG deal will see Shell's proved reserves and current production increase 25% and 20%, respectively. Of BG's assets, the crown jewels are its
Brazilian oil interests in the Santos Basin, which are estimated to hold more than 3 billion barrels of recoverable oil resources. These oil fields have the potential to be producing 500 thousand barrels per day by the end of the decade. Critically, BG was an early entrant to the region for refining, and Shell into Brazilian pre-salt and was given fiscal terms that are
far more generous than are currently on offer for new projects (such as Shell's stake in Libra), given the changes Adding it up, we don't believe Shell possesses an to Brazil's petroleum laws. We estimate BG's Brazilian economic moat assets can break even at roughly $30-$35 per barrel, making this some of the lowest-cost oil in the world.

I believe fair value to be around $42 a share so may see it go down 10% which means I will keep add shares to this oil Moat. I think it will be difficult to predict bottom for oil at this point as Mr. Market has been fluctuating between swings of 5% up or down on any given day. But I do believe it's time to buy it now when oil prices are still in distress, I see oil rebounding in 18 months to average prices of $60 to $70 a barrel long term with both US and Iran produce more oil the $100 a barrel prices may be a thing of the past.

What are you buying? Any thoughts on recent buys?

Thanks for reading

Disclaimer: Long on RDS.A, CVX and XOM

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