Conclusion: I Regard Shell As Uninvestable
Shell: What It Will Take To Be Investible Again
Summary
- Shell’s dividend cut and unpredictability last year cost it a lot of shareholder confidence.
- I outline three metrics I think show whether it’s investable again.
- On all three metrics, I continue to see it as uninvestable with confidence.
U.K.-based oil major Shell (RDS.A, OTCPK:RYDAF) didn’t have a great time of it last year when it came to shareholder relations. With its mammoth dividend cut and poor signaling thereof before it was made, a lot of shareholders ditched the holding. I sold my entire stake and reinvested the proceeds in more Exxon Mobil (XOM).
Below, I outline what I think are the key challenges to Shell being investable at this point.