You Don’t Have to Be Cheap to Like A Cheap Energy Stock
Not sure if you really want to invest in energy? Or maybe you want to buy more energy stock, but don’t want to dive into an $80 stock. Whatever your situation, if you are looking for a good deal on an energy stock, these stocks are it. According to Rougemont, these stocks are cheap, and have are expecting solid gains.
Syntroleum Corp. is trading for $1.35. Syntroleum develops and markets synthetic fuels. This includes diesel fuels, heating oil, aviation fuels, lubricants, naphtha, etc., and they have ability to process a range of feedstock, including vegetable oils, fats, fatty acids, and greases into synthetic distillate fuels, such as diesel fuel, heating oil, jet fuel, naphtha, and propane. Syntroleum has a joint venture with Tyson Foods, Inc. (TSN) and operates a huge biofuels plant. This plant, which opened just late last year, has the ability to turn animal fats into renewable diesel with a capacity of about 75 million gallons.ATP Oil and Gas Corp. is trading at $15.42. ATPG is an independent oil and gas company based in Texas. These shares have traded in a range between $8.85 to $21.40 in the last 52 weeks. The 50-day moving average is $16.48 and the 200-day moving average is $16.51. Analysts are expecting substantial growth from this company and see revenues jumping from about $762 million this year to about $1 billion next year.The earnings estimates are for a loss of $1.38 per share in 2011, but analysts see profits of $1.86 per share for 2012. If ATPG achieves that level of profitability, these shares could jump to $30 in 2012.ENI SPA (E) is trading around $45.42. ENI is a major integrated oil and gas company based in Italy. These shares have traded in a range between $35.10 to $50.30 in the last 52 weeks. The 50-day moving average is $48.59 and the 200-day moving average is $43.58. E is estimated to earn about $5.32 per share in 2011 and $6.06 for 2012.Kodiak Oil and Gas Corp. (KOG) is trading at $6.19. These shares have traded in a range between $2.43 to $7.70 in the last 52 weeks. The 50-day moving average is $6.12 and the 200-day moving average is $5.96. KOG is estimated to earn about 35 cents per share in 2011 and 83 cents in 2012. The CFO recently bought about 16,450 shares which totals nearly $100,000.
Abraxas Petroleum Corporation (AXAS) is trading at $4.91. These shares have traded in a range between $2.30 to $6.16 in the last 52 weeks. The 50-day moving average is $3.96 and the 200-day moving average is $4.33. AXAS is estimated to earn about 20 cents per share in 2011 and 43 cents in 2012.These shares have jumped up in the past couple days, so I would wait for pullbacks. At $4 or less, which is around the 50-day moving average, these shares are cheap, based on the growth potential.Magnum controls about 46,000 acres in the Marcellus Shale region as well as exposure to the Eagle Ford and Bakken. Oil stocks with exposure to the Bakken Range have surged. The CEO of one leading oil company sayshe thinks there are 20 billion barrels of oil in the Bakken. If management executes properly, there is substantial growth potential here. Insiders have been buying shares. Like Abraxas, this stock has jumped up in the past couple days, so I would wait for pullbacks to around $6.70.