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No. of Recommendations: 17
<<Now that the Enron incident has taken place, companies like xom, which have clear, transparent, and no accounting smoke and mirrows bull-shit, but real cash flow, real earnings, and superior management and thus return, will command a premium in their stock price simply because of "safety" and quality of earnings. oil consultant >>

As some of you may know from my earlier postings, I am a 20+ year lady veteran of Exxon Mobil, living in Baton Rouge, so I am very biased in favor of xom. Having said that, what "oil consultant" has said in the quote above, in my opinion, is very true.

I have found it a delight to work for this company. And I have found that they are, as someone said before "straight shooters". Every year before the end of December I have to sign a piece of paper that says I have read the "ethics policy", which includes also the rules on anti-trust. And they provide me every year with a copy of these rules, and also the rest of the management employees. When I sign I have to state that I have read and understood the policy, so that if something happens, I cannot claim ignorance.

The system of compliance is such that it promotes honesty and openess, and in the "open door policy" and the "non harrassment policy" I could walk into the office of the lab manager, or the refinery manager and bypass my boss if I think there is something going on that is either unethical or illegal, or constitute harrassment or intimidation. I have never had to do it, but I know is there.

I know of a case where there was a two gallon spill because the operator taking the sample at one of the units accidentally droped the bottle -- he should have reported it, and did not --and the fellow almost got sacked. They reprimanded him, and that hurts promotion opportunities. The point is -- honesty, always, first and foremost, even if we look bad on the statistics.

To illustrate further: One of our refineries in Central America had gone 35 years without a lost time accident. One of the refinery employees had to go pick-up someone at the airpor because the taxi that had been arranged never showed up. The refinery manager sent this guy, and on the way there, the fellow got hit by a truck, and ended up in the hospital.

Despite the fact that this accident was totally unrelated to refinery operations, since it involved a refinery employee the Refinery Manager reported it as a lost time accident even though it did not occur on the premises, but since it was a refinery employee, the rules said it had to be reported as was a tought break, and it broke the longest string of a safety record from a refinery in the xom circuit, but as hard as that was, it had to be recorded. Not bending of the rules.

Well, I think I have said enough about this honesty issue.

My point is that xom reports real earnings. None of this pro-forma stuff I hear other companies report --none of this "off balance sheet" financing --whatever that is.

I don't know whether the stock is going to go up or down from one day to another or from one week to another. But I do know one thing, over the long term it will do as good or better than it has done in the past, and the past has been superb. Baytown refinery, in Texas, just started a brand new coker which is going to improve refining economics tremendously.

Read what professor Siebel said recently in Kiplinger about the only stock that has beaten the market indeces, consistently over the last 50 years (you guess it -xom) and you will see why I am so gong-ho about investing in this stock, big time. And I am now buying at 100% of my savings and the company's matching fund.

Now I am not recommending anyone investing in xom--that is my choice. I just do it because I know the company well, and I have confidence in the people I work with and the management that has been guiding it for the last 21 years. Or I should say "the culture" that has been developing managers to guide it the way they have.

So if your considering xom, take a look at it. I think they are well worth a few dollars of your investment.

Madame butterfly
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