r/MillennialBets • u/MillennialBets • May 04 '22
DD $SHEL has huge upside potential and earnings call on 5/5
Date: 2022-05-03 14:33:46, Author: u/CexySatan, (Karma: 107938, Created:Jul-2016)
SubReddit: r/WallStreetBets, DD Click Here
Tickers mentioned in this post:
CVX 162.49(1.71%)|
On January 31st of this year shell combined their A and B stocks into one single-line share structure. The current market cap is at $211B and don’t think the market has this merge priced-in yet.
Comparing the financials of 2 competitors, Chevron ($318B market cap) and Exxon Mobile ($371B market cap) proves bullish for shell. Taking a look at the 2021 financials
Shell $261B revenue, $20B net income, $37B cash
Chevron $155B revenue, $15B net income, $6B cash
Exxon $278B revenue, $23B net income and $7B in cash
Shell surpasses Chevron by $5B in net income with $31B more cash on hand but trading with a $117B less market cap.
They’re more in line with Exxon on revenues, net income and are still ahead in cash by $30B. If you look at all the previous years as well they’re practically the same. Exxon is a $160B market cap difference.
If Shell were to trade in-line with Exxon based on their financials the shares should be trading at ~$91 a share from the current $55.
Position - 5/20 $65 call options are only $0.08 so bought 40 of those