Monday, November 16, 2009

Energy stocks for bull market

energy stocks
One thing is for economic recovery the same as ever. Demand for energy during growth simply must grow. And for those who believe in recovery here are some of energy stocks.

Chesapeake Energy (CHK) mines natural gas. While the price of gas is pushed down by the economic downturn and new technologies which allow to isolate the material from clay. But the recovery will come only with the end of the recession, but at the expense of coal, which generates more pollution. Estimated profit for 2010 is over U.S. $ 2.4 per share. So it is possible to buy those shares for about 12 multiples of expected profits.

Devon Energy (OK) is one of the producers of natural gas and oil (which constitute 86 percent of its sales). At estimated profit of USD 6.2 shares are very attractive to buy that provides 11 multiples of expected profits.

Oil giant ConocoPhillips (COP), among other things, owns 20 percent of Russia's Lukoil. From their lows around 35 USD has bounced up to $52, but still have long way to highs (just slightly below $100). ConocoPhillips is at around 9 multiples earnings per share which is currently one of the cheapest stocks in energy sector.

American Electric Power (AEP) generates electricity. 73 percent of production is from coal-fired power plants, which is not in vogue, but the shares are still nearly 40 percent cheaper than that at its peak in 2007.

Comments

2 Responses to "Energy stocks for bull market"

Anonymous said... November 22, 2009 at 10:39 AM

It is extremely interesting for me to read that article. Thanx for it. I like such topics and everything that is connected to this matter. I would like to read a bit more on that blog soon.

Anonymous said... December 7, 2009 at 4:56 PM

Don't forget about green energy! My favorites are wind turbine makers Nordex and Vestas. Symbols: NRDXF.PK, VWDRY.PK, VWSYF.PK.