2 oil stocks

[BadBoyBenny]

EPEX (Edge Petroleum), SU (Suncor)

2 stocks I'm interested in and beginning to research. Don't own either yet. If the Saudis start pumping around election time to help out Bush, then all exploration and production companies may suffer a hit as crude prices will drop. This may present a buying opportunity for one or both of these.

Anyone have any opinions? I'll post more things I like and don't like as I do more investigation.

[Ray Zee]

oil prices are too hard to figure which way they are going and most importantly how long they will stay that way.
if you believe what you say, selling or shorting may be better than trying to fish for a bottom and guessing right.
i suspect they will lower prices not because of bush but to head off a backlass that may get them in the future.
i would think that the arab world would not want bush back in. although he may be better for their money situation, their ideology seems to take first stance here. not like with our culture.

[boedeker]

i have owned PKZ (petrokhazastan) for a while and been very pleased.

[Mark Heide]

BadBoyBenny,

EPEX is overvalued with a P/E of 31. SU has a P/E less than 14 which is not bad, but if I were to choose an oil company, you may want to consider MRO (Marathon Oil). It's P/E is a little lower and pays an annual dividend of $1.00 compared to SU's $.24. You are getting more than 4x as much dividend and if you compare stock prices, Marathon is a much better value if you consider the dividend.

I think in this sector it is too hard to predict politics and demand, but I would look at the valuations and dividends that these companies have to make a decision.

Good Luck

Mark

[BadBoyBenny]

Mark thanks for your reply, I agree that 31 is a very high PE for an oil company. What attracted me is that P/Cash Flow is closer to 7. This is typically more important to me than earnings which are more easily maniuplated.

Also EPEX has had great success growing their domestic reserves to provide future earnings and cash potential. I haven't done enough research to come up withan opinion on whether the cash flow and growth in reserves are sustainable or a reasonable rate of exepcted future growth. After reading their last couple 10K's I'll have more of an idea how long depreciation will weigh on earnings. I'll also look into MRO and include some thoughts tonight or tomorrow.

[scalf]

/images/graemlins/blush.gif fergit them dogs...

ERES about 32.00/share..

bet it all

big bux

or maybe lose it all

buy ERES

big play

gl

jmho

/images/graemlins/shocked.gif /images/graemlins/spade.gif /images/graemlins/cool.gif /images/graemlins/cool.gif /images/graemlins/cool.gif /images/graemlins/diamond.gif

[adios]

Oil and natural gas prices soaring yesterday. I've owned Halliburton for awhile and still like it. I've been reading some good things from traders about drillers. In my mind the $64,000 question is have energy prices peaked or are they close to a peak.

[BadBoyBenny]

After a brief glance at last year's 10K, I'm not near as confident that EPEX justifies its valuation. A lot of its reserve growth was from acquisition, and FCF is not nearly as rosy as OCF.

No more analysis on this one, I'll look for better deals elsewhere.

[nicky g]

Ness Energy is the only oil stock worth having. Check out their website. God himself has told them where to drill.

Funny funny stuff (http://www.nessenergy.com/)