The United States is overflowing with oil. In fact, the Energy Information Administration thinks the country could realistically produce 6 million to 8 million barrels of oil per day over the next three decades. The institution's high estimate exceeds 10 million barrels per day. Canadian production isn't doing too bad, either, although supporting infrastructure is less developed for our northerly neighbors. That bodes well for the companies pumping it out of the ground, but it also represents a big opportunity for the companies transporting and refining crude oil.
Here are four of the best investments supporting oil drillers.
Canadian National Railway (NYSE: CNI )
Canadian National Railway is one company trying to bail-out Canada's ailing pipelines. In 2010 the company didn't move one carload of crude oil. This year it is expected to "choo-choo" its way to 60,000 carloads of oil from the country. This business in particular has boosted sales and income each year since 2010. Investors have to like that growth and where things are headed in the long term. Canadian National is cutting checks totaling $1.9 billion this year to repair its railways, accommodate growth needs, and purchase new freight cars, including new natural-gas powered models. �
Top 10 Canadian Stocks To Buy For 2014: Tsakos Energy Navigation Ltd(TNP)
Tsakos Energy Navigation Limited, together with its subsidiaries, provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national and independent oil companies and refiners under long, medium, and short-term charters. As of August 16, 2011, its fleet consisted of 50 vessels comprising 59 tankers, including 2 dynamic positioning 2 (DP2) shuttle tankers under construction, and 1 liquefied natural gas carrier. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.
Advisors' Opinion:- [By Lowell]
Tsakos Energy Navigation Limited is a provider of international seaborne crude oil and petroleum product transportation services. Its EPS forecast for the current year is 0.54 and next year is 0.99. According to consensus estimates, its topline is expected to grow 4.48% current year and 12.48% next year. It is trading at a forward P/E of 10.95. Out of eight analysts covering the company, two are positive and have buy recommendations, one has a sell recommendation and five have hold ratings.
Top 10 Canadian Stocks To Buy For 2014: Nexen Inc.(NXY)
Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.
5 Best Gold Stocks To Watch Right Now: Natural Gas(NG)
NovaGold Resources Inc., through its subsidiaries, engages in the exploration and development of mineral properties primarily in North America. The company primarily explores for gold, silver, copper, zinc, and lead ores. It holds interests in the Donlin Creek property covering 81,361 acres and the Ambler property comprising 90,614 acres located in Alaska; and the Galore Creek property comprising 293,838 acres located in northwestern British Columbia, Canada. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was founded in 1984 and is based in Vancouver, Canada.
Advisors' Opinion:- [By Vodicka]
Novagold Resources Inc New Ord (AMEX:NG): This equity had 11,424,918 shares sold short as of Aug 31st, as compared to 11,493,664 on Aug 15th, which represents a change of -68,746 shares, or -0.6%. Days to cover for this company is 4 and average daily trading volume is 2,735,045. About the equity: NovaGold Resources Inc. is a mineral exploration company. The Company, through its subsidiaries, explores and develops mineral properties in North America. NovaGold primarily focuses on gold properties, which may include copper, silver and zinc resources.
- [By Holly LaFon] John Paulson bough 20, 181,818 shares of NovaGold in the first quarter of 2010 at an average of $6 per share; he added 26,200 shares in the third quarter at an average of $9 per share, and 2,746,800 in the fourth quarter at an average of $9 per share. According to GuruFocus Real Time Picks, in February he increased this holding 30.49% and now owns 29,954,818 shares or 10.8% of the company.
NovaGold Resources is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. NovaGold has a market cap of $2.26 billion; its shares were traded at around $7.68 with and P/S ratio of 5622. NovaGold had an annual average earnings growth of 31.1% over the past 10 years.
It is not a surprise that Paulson would increase his gold holdings. He said in his 2011 investor letter that ��y gold fund will top all others.��He added:
We anticipate that the divergence between gold and gold equities will narrow, given the booming earnings that a number of the major gold producers are delivering...We remain excited about the outlook for the Paulson Gold Funds over the next few years. Central banks have engaged in unprecedented amounts of quantitative easing, while investors are increasingly losing faith in paper currencies. The sovereign debt crisis in Europe continues to threaten the stability of the global financial system. In this environment, gold stands out as the most stable and credible currency alternative and we would argue that the potential upside in gold outweighs the potential downside. Gold equities are attractively priced given the strong financial performance than many of these companies are delivering... The Paulson Gold Funds, which are designed to outperform gold in a rising gold price environment, provides investors with a hedge against inflation and more.NovaGold does not have the robust earnings Paulson speaks of. But for the year ended Nov. 30, 2011, the company�� loss narrowed to $153 million, from $203.5 million, for 2010. ! Revenues declined to $111 million for 2011 from $172 for 2010. The company had $66.8 mil
Top 10 Canadian Stocks To Buy For 2014: Royal Bank Of Canada(RY)
Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.
Top 10 Canadian Stocks To Buy For 2014: ConocoPhillips(COP)
ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.
Advisors' Opinion:- [By Fabian]
ConocoPhilips(COP) is a close second. This is a Warren Buffett darling that will benefit from its spinoff of refining assets some time in 2012.
Conoco also continues to pay a consistent and reliable 3.75%. Note that COP has underperformed the rest of the sector recently. Correlations are normally so close that such an underperformance by one stock can point the way to value.
Top 10 Canadian Stocks To Buy For 2014: Waste Management Inc.(WM)
Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.
Advisors' Opinion:- [By Sam Collins]
Houston-based Waste Management Inc. (NYSE: WM) is the largest trash hauling/disposal company in the United States. This company is a model for steady growth with earnings increasing steadily over many years.?
S&P has a “four-star buy” on WM with a 12-month target of $42. WM pays an annual dividend of $1.36 for a yield of 3.7%.?
Technically, the stock is in a powerful bull channel with support at $36 and resistance at $39. Buy WM as a long-term growth opportunity.
- [By Tom Konrad]
The only household name in this year's list, Waste Management is coming back for an encore performance in 2013. WM is the North American leader in recycling and renewable biogas among waste and environmental services companies. The industry has been in a cyclical downturn, and WM's well-covered 4.2% dividend makes it a solid anchor for this portfolio of small and micro-cap clean energy stocks.
- [By Jonas Elmerraji]
Investors think Waste Management (WM) is a garbage stock right now. Why else would WM's short interest ratio hover around 12.6? Of course, Waste Management is in fact a garbage stock of sorts -- it is the largest waste management service provider in the country. The firm boasts more than 270 landfills and a massive fleet of trash collection vehicles that spans the U.S.
When I think garbage firms, the first thing that comes to mind is dividends: WM and its peers historically have generous, recession-resistant dividend payouts. Currently, Waste Management's yield adds up to 3.36% annually. Don't forget, dividends are like kryptonite to short sellers.
WM's willingness to embrace innovation has big potential in the years ahead. Right now, the firm's portfolio includes 22 waste-to-energy plants that are designed to turn the waste that WM literally gets paid to collect into renewable energy that the firm gets paid for again. At this point, the firm's energy plants make up a very small part of its total business, but waste-to-energy projects and the recent acquisition of small oil service firms should look attractive to investors right now.
Earnings in two months look like the next big catalyst for a short squeeze in WM.
Top 10 Canadian Stocks To Buy For 2014: (CG)
The Carlyle Group is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led buyouts, divestitures, strategic minority equity investments, equity private placements, consolidations and buildups, leveraged finance, and venture and growth capital financings. The firm typically invests in agriculture, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, technology, real estate, financial services, transportation, business services, telecommunications, and media sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, consumer services, personal care products, direct marketing, and education. W ithin aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies , managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan Africa, Asia, Australia, Europe, Middle East, North America, and South America. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate! sector, the firm seeks to invest in Italy, the United Kingdom, and the United States with a target on Florida and Atlanta. It typically invests between $5 million and $50 million for venture investments and between $50 million and $1 billion for buyouts. It typically holds its investments for three to five years. Within automotive and transportation sectors, the firm seeks to hold its investments in for four to six years. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group was founded in 1987 and is based in Washington, District of Columbia with additional offices across North America, Latin America, Asia, Africa, and Europe.
Top 10 Canadian Stocks To Buy For 2014: Concord Medical Services Holdings Limited (CCM)
Concord Medical Services Holdings Limited, together with its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the People�s Republic of China. The company�s services comprise linear accelerators external beam radiotherapy, gamma knife radiosurgery, head gamma knife systems, body gamma knife systems, proton beam therapy, diagnostic imaging, and other treatment and diagnostic modalities. It offers clinical support services; develops treatment protocols for doctors; and organizes joint diagnosis between doctors in its network and clinical research. The company also operates a specialty cancer hospital, as well as leases medical and diagnostic equipment. As of March 31, 2011, it operated a network of 121 centers with 68 hospital partners that cover 46 cities and 24 provinces, and administrative regions in China. The company was founded in 1996 and is headquartered in Beijing, the People�s Republic of China.
Top 10 Canadian Stocks To Buy For 2014: Nu Skin Enterprises Inc.(NUS)
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.
Top 10 Canadian Stocks To Buy For 2014: Royal Caribbean Cruises Ltd.(RCL)
Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi�es de France. The Royal Caribbean International brand provides various itineraries and cruise lengths with options for onboard dining, entertainment, and other onboard activities primarily for the contemporary segment. It offers surf simulators, water parks, ice skating rinks, rock climbing walls, and shore excursions at each port of call, as well as boulevards with shopping, dining, and entertainment venues. The Celebrity Cruises brand operates onboard upscale ships that offer luxurious accommodations, fine dining, personalized services, spa facilities, venue featuring live grass, and glass blowing studio for the premium segment, as well as resells computers and other media devices. The Pullmantur brand provides an array of onboard activities and serv ices to guests, including exercise facilities, swimming pools, beauty salons, gaming facilities, shopping, dining, complimentary beverages, and entertainment venues serving the contemporary segment of the Spanish, Portuguese, and Latin American cruise markets. The Azamara Club Cruises brand offers various onboard services, amenities, gaming facilities, fine dining, spa and wellness, butler service for suites, and interactive entertainment venues for the up-market segment of the North American, United Kingdom, German, and Australian markets. The CDF Croisieres de France brand offers seasonal itineraries to the Mediterranean; and various onboard services, amenities, entertainment venues, exercise and spa facilities, fine dining, and gaming facilities for the contemporary segment of the French cruise market. As of December 31, 2011, the company operated 39 ships with a total capacity of approximately 92,650 berths. Royal Caribbean Cruises Ltd. was founded in 1968 and is headqua rtered in Miami, Florida.
Advisors' Opinion:- [By Hawkinvest]
Royal Caribbean Cruises (RCL) is one of Carnival's competitors in the cruise industry. Royal does not have the same issues as Carnival in terms of the Costa Concordia incident, but it could be impacted by discounting in cruise fares, as well as higher fuel costs. Royal Caribbean shares were recently downgraded to a strong sell by Zacks Investment Research, and a recent analyst report states:
We are a bit doubtful about the cruising sector in the near term after Carnival's ship Costa Concordia ran aground in mid-January on Italy's west coast. The disaster hit the industry in the wake of the wave season between January and March. The recent tragedy resulted in subdued bookings. Royal Caribbean's overall booking volumes in North America came down. In Europe, where the incident took place, the cut in bookings has been steeper. Business in APMEA was also down slightly. The company expects a 20% decline in new bookings during the peak of wave season.
This stock was trading below $26 in early January, but it has rallied with the markets. With oil prices trending higher, and the stock at the high end of the recent trading range, the shares look vulnerable to a pullback.
Here are some key points for RCL:
Current share price: $29.89
The 52 week range is $18.70 to $45.45
Earnings estimates for 2011: $2.32 per share
Earnings estimates for 2012: $2.94 per share
Annual dividend: 40 cents per share which yields about 1.3%
No comments:
Post a Comment