181–190 of 253 posts
I think he underestimates the wrath of a market that has judged a market sector unpopular
One markets unpopularity is anothers arbitrage. The underlying value is what drives the asset in the long run. Oil companies play the long game.
Except in the long run these companies are dead unless they pivot.
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Much of the developed world already has deregulating populists - that's half the damn problem. Except populism never lasts, and populist regimes are always incredibly divisive and usually end discredited. It's what comes next that matters.
Definition of populist? Someone I disagree with.
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If anything, shouldn't the green contingent buy more stock in oil companies to try and effect a hostile takeover?
That seems very unlikely to be the most cost-effective use of capital. Exon Mobile has a market capitalization of $309 billion. So figure $200 billion for a hostile takeover --- that's approaching the yearly cost of a Green New Deal plans, and you've only taken out one fossil fuel company.
You cannot put your money behind the disruptive technologies if your money is tied in fossil assets. You'll have to divest first before you can relocate it elsewhere. You can spend a dollar only once.
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Doesn't this avoid the core point of decarbonising the economy? Rather than getting Chevron to limit emissions, we need them to cease emissions. Which for an oil company means find an entirely new line of business - hopefully something like renewables - or cease to exist. Allow a tiny few to continue for the purposes of creating plastics we can't easily substitute by something else. Yes, that expects and requires far…
Agreed. At this point I'm more inclined to follow the "seize their assets and jail their leaders" doctrine rather than a "let them continue to profit" one.
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But some other investor bought the stock, didn't they?
Perhaps, though most people don't buy stock. If you can get institutional investors to divest, that limits most people's direct exposure. Do I expect it to necessarily make a big difference (especially in the short term, without becoming a broader movement)? No. I do believe, however, that it's not nothing , and that we need to pursue everything . There's also a personal aspect - I want nothing to do fossil fuel stoc…
Every minute you spend arguing for divestment is a minute you don’t spend arguing for nuclear.
They offer shares of Shell in an attempt to transition the company to green energy.
Fossil fuel divestment is basically subsidy for those who don't care. Divestment causes stock price drop and it increases ROI for those who invest into the company.
It's really "threat that more people will want to divest or remain divested when they would have otherwise invested" that can cause change. The board answers to the shareholders, and shareholders generally want to be able to sell their shares at a profit. If shareholders start to believe that the market for the shares is going to continuously decline because of some activity the company engages in, that creates an in…
Oil and gas industry is stable and established industry where the earnings and dividend yield makes the return for the investment. The stock prices are in long term decline. They are not growth stocks. If P/E drops because divestment and earnings stay the same, it will generate extra ROI for investors.
To get you into the same page, consider BP and Royal Dutch Shell
Company: BP
dividend yield: 6% (2018),
P/E : 14.67,
10y stock price : -46%
Company: Royal Dutch Shell (RDS)
dividend yield: 6% (2018),
P/E : 11.70,
10y stock price : -30%
Example here is Beyond Meat.
I hear the recommendation a lot to put a high price on CO2, i.e., what creates a lot of CO2 during production gets more expensive. The idea is demanded by the Friday for future movement, or better said by the experts they asked how to solve our climate change problem. I think it would be the right direction.
Why is nobody concerned about the next 100.000 years lasting ice age which is already overdue by roughly 4000 years?