Gene Marcial, Business Week’s stock-picking guru, recommended Exxon Mobil (XOM) on 6/3/08:

a. It has been piling up billions upon billions of dollars each year in eye-popping profits.

b.The real story here is why Exxon Mobil is a must-own for long-term investors.

c. You can’t expect spectacular returns going forward, but predictable profitability is attractive in a volatile market.

d. According to Marcial, the company is still very much undervalued.

e. The stock now trades at just 10 times 2008 estimated earnings of $9 a share. That is about in line with, or less than, its smaller peers.

f. The company’s return on equity went to 34.5% last year from 26% in 2006. And dividend growth is at a yearly clip of 9.1%, with the shares yielding 1.7%. Exxon Mobil bought back about $8 billion of its stock in the first quarter of 2008.

g. oil and gas production accounted for only 7.3% of revenues but generated a whopping 65% of profits in 2007, mainly due to the jump in oil prices. But, even when the price of oil moderates, Exxon Mobil’s refining operations could well produce increased earnings.

h.Exxon Mobil owns the largest portfolio of proved reserves and production in North America, and is the largest producer of oil and gas in Europe.

i. Strong finances, commitment to increased research and development, and the company’s position as a mainstay in the energy field appears assured for years to come.

j. Exxon Mobil’s stock has outperformed the Standard & Poor’s 500-stock index in the past 19 years.

See Gene Marcial’s picks at:

http://www.trackthepros.com/categories.php?category_id=404