Mad Money’s Jim Cramer recently release his favorite picks for the month of July. Of these pics, an energy company worked its way into the list. The company is Continental Resources. Dr. Osman Gulseven has details as to why CLR made the list.
Continental Resources (CLR): CLR is a charming stock for me. $1000 invested in CLR in May, 2007 is approximately $4470 now. As of July 12’s close, the oil company was trading at a forward P/E ratio of 19.44. Earnings increased by 135.51% this year, while analysts expect the company to have a 30.35% EPS growth next year. Continental Resources had an admirable increase between Oct 2010 and July 2011, leapfrogging from $45 to $65.68 The company is trading 10.89% lower than 52-week high. Target price is $74.74, implying an about 15% upside potential. CLR has no dividend policy. Although debts are going berserk, Cramer, like me, says that “If you believe that oil is going to stay permanently elevated, than you want to own American companies with American oil.”
“This is a Bakken shale play and I reiterate my buy. You want to own American oil companies with American oil.”- Jim Cramer
Jim Cramer isn’t a bad source for stock recommendations. CLR was one of his picks for this month. Even if it is Jim’s pick, it won’t hurt to do some additional research.
Quotes taken from report by Dr. Osman Gulseven, Read the entire article here.
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