Chevron Common Stock..
Chevron Common Stock The projected average recommendation summary as pertaining to the current week was standing at -6.0. S & P 500 was higher throughout the period of three months. This is also seen to be the same to the previous average recommendation. The month match had the highest stock as regarding to its common stock. Therefore, the difference amidst the two weeks was standing at zero. The element of purchasing was depicted to be strong within the last three months and was standing at an average of seven percent (Moody & Mergent, 2008). The purchasing power of the Chevron Common Stock within the existing market such that the last dual month was standing at ten and eleven respectively. This means that there was strong purchase that was ranging between one point zero to one point five. There was underperformance within the prevailing market of averagely one within the last three months. However, the present month did not experience any element of underperformance within the prevailing market. The recommendation as pertaining to the trends within the last four months was presented on the table below. Recommendation Trends Current Month Last Month Two Months Ago Three Months Ago Strong Buy 0 7 7 7 Buy 0 10 11 12 Hold 0 5 5 4 Underperform 0 1 1 1 Sell 0 0 The performance of the Chevron Company in terms of beta were standing at 0.95 The main factors that have contributed to alteration of the stock prices were numerous issues. The first was the promise of the Syria`s government that keeping the supplies of the oil high accompanied by the condition that existed of the Iran as pertaining to the cooling down. The drastic increase of the oil prices was driven by the Chevron`s growth that occurred within the last three years. This factor resulted top the drastic turning that was realized within the period of the growth. The decrease of the existing oil prices also resulted within the stock of the prevailing oil during the period of the summer. Moreover, there was reassessment of the condition as pertaining to the oil prices accompanied the recent global news that played a better role in the determination of the buying price, selling price and the respective holding shares of the Chevron Company. The existence of other energy companies, which were determining the places and areas to invest the money also contributed to the alteration of the prices of the prevailing stock. The major stock news that that took place within the last three months was arranged in a sequential order. Within the San Ramon in California on the month of April 27, 2005, Chevron Texaco Company announced a dividend of forty five percent on every share. The realized dividend that was forty-five percent was payable in the month of June 10, 2005. Within the subsequent years the dividend rate drastically increased by five percent for every share within the existing preceding quarter. Chevron Texaco Company possesses an unbroken record as pertaining to the prevailing annual dividend escalated within the last eighteen consecutive years of the financial trade of the company. Consequently, Chevron Texaco earning that took place within the company`s conference hall called for the subsequent meeting that was held on Friday, April 29,2005 at 11:00 am Eastern time zone. CVX has not yet published its first quarter profit for the current year hence the data that was utilized is mainly based on the most recent earning of the quarter of the company. The fiscal financial year that terminated on December 31, 2004, the Chevron Company realized a total profit of twenty eight percent that was equivalent to the $155.3 billion. The projected revenue was a clear indication of the higher mean product of the sales prices of the stocks (Donald 2010). The company`s financial overview represented these position in the form of the dividend that was in term of the percentage. Additionally the company announced the increase in the quarterly dividend from forty five percent to forty percent that took place on the wenesady, April 27, 2005. The net income of the Chevron Company depicted a better performance within the prevailing quarter of the previous year. The company`s projected net income as at the 4th quarter 2004 had massively increased by a half that is by over fifty percent from the previous year which was 2003. The revenue of the Chevron Company has also increased by twenty nine percent. The P/E ratio of the Chevron Company is depicted to be relatively low in comparison to the existing sectors or the prevailing S&P 500. The beta was relatively low at 0.56 that was observed as the less volatile as compared to the other existing sectors and the S&P 500, which were more volatile within the market. Generally, all the existing ratios as pertaining to the sales accompanied to the cash flow were relatively low (Donald 2010). The projected ratio analysis were represented on the table below RATIO COMPARISON Valuation Ratios Company Industry Sector S&P 500 P/E Ratio (TTM) 8.79 13.13 18.14 20.71 P/E High “ Last 5 Yrs. NA 34.29 37.17 41.12 P/E Low “ Last 5 Yrs. NA 13.01 10.97 15.52 Beta 0.56 0.51 0.65 1.00 Price to Sales (TTM) 0.74 1.08 2.15 2.83 Price to Book (MRQ) 2.51 3.20 3.30 3.86 Price to Cash Flow (TTM) 6.36 9.41 11.23 15.29 CVX outperform as compared to the other competitive firm within the similar market. Despite of the constant purchase hold stance was depicted as a consistent amidst the existing companies. The numerous of the existing holding duration within the CVX was included within the long portfolio of the company. This has proven to be very significant in the recent realized outperformance of the CVX Company. The extra transaction costs within the investment were very fundamental in the sound decision making of the company. The recommendation was very accurate as the company outperform in comparison to the other existing companies References DePamphilis, D. M. (2010). Mergers, acquisitions, and other restructuring activities: An integrated approach to process, tools, cases, and solutions. Burlington, MA: Elsevier/Academic Press. American Institute of Certified Public Accountants. (2009). Accounting trends & techniques. New York.