Top Stock For "buying On Weakness

Q: Exxon has not participated in the "rally" which has been mainly gamblers jumping into dirt cheap stocks. If the rally is going to have real legs XOM and MSFT must get above their 50 day averages. If your a bull and want the S & P to break 900 then XOM must get out there and lead the way. XOM under $70 per share is a great long term bargain. I loaded up today and plan to buy my other 1/2 later if prices continue to weaken.

A: XOM stock price never really went down much compared to other oil and gas plays. It is not gambling to be buying dirt cheap stocks whose stock prices were knocked down far below their real value. That is investing. I don't know if PBR will reach $100 before XOM but surely PBR will double in price well before XOM does. Why buy XOM when there are much better values out there. The short term risk is high but long term rewards will be amazing. I am unsure that oil stocks will be good to buy with the current administration. Obama is going to promote clean energy and I see cars relying less on oil. There may be a paradigm shift in the next 10 years so I do not have a long stance on XOM. Also this stock peaked when oil prices peaked and I do not see oil reaching that kind of peak again within the next few years. I may be wrong but I think of this stock as a gamble that oil prices will rise up.

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