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Sunday, August 31, 2008

My September 2008 Stock Picks ( A special Hurricane Gustav Stock Picks )




1. (FAN) 26.00 Target price 30.00 a share
You have to be long in this,w/ the pickens plan this ETF can pop ! only if u believe in wind energy !Wind is one of the fastest growing renewable energy sectors globally, and much less speculative than solar (there are many profitable companies trading with almost reasonable P/E values). FAN offers exposure to these and other international companies, plus a range of wind-related companies in the US from micro-cap BWEN to giganormous GE. FAN keeps the behemoths like GE or BP to a small percentage of the fund, allowing for more pure-play and also more growth potential.But a windmill is (relatively, at least) fairly cheap and the wind is nearly always blowing. Why not harvest it?

2. (RES) 18.23 target price 25.00 a share
With hurricane Gustav ready to crush all the oil & gas fields in the gulf coast this is the small cap pick u want tp have in your profile . RES is one of my top long term picks , however u can make some mad money in the short term in sept. 2008 !RPC. INC.provides a range of oilfield services that are in exploration, production & development of oil & Gas.( RES )Has been a great investment over the past 5 years & will be for the next 5 more years to come. Reasonable valuations as a result of missing the past few earnings. Forecast , should pick up steam in 2008,2009 ... . This company will benifit as exploration companies are forced to work harder to get at oil reserves. A wild card would be , if congress ever passes a bill , that would allow the USA to drill in Alaska. P/E is 13. RES is around there 1 year low, currently undervalued & still pays a nice Dividend(.20 cents )a share. This company recently borrowed big $$$$ ( 100 Million ) to buy equipment and expand the business. RES has good financials , Low Debt. I believe ( RES ) is well positioned to benefit from continued cyclical strength w/ both increasing drilling activity & natural gas production, i am forcasting increasing demand for pressure pumping services by ( RES ). The fundamentals are excellent and the inside ownership is more than respectable 66%.The management has been buying up a lot of shares lately, thats a great sign that RPC. INC. management team has a lot of faith within there company and product. So buy up shares on the dips and explore great rewards in the long term !! ( this is a long term play )When we have to drill and I mean DRILL, this company is well placed and already in position to profit on the Gulf of Mexico, TX, LA, OK. I think they have the model to make great profits. The only question is the price of Oil when it turns winter up north. Development of gas lines throughout Alaska is an eventuallity.
3. PG&E ( PCG ) 41.33 target share price 45.00 a share
PG&E Corporation is an energy-based holding company that conducts its business through Pacific Gas and Electric Company (Utility), a public utility operating in northern and central California. The Utility engages primarily in the businesses of electricity and natural gas distribution, electricity generation, procurement and transmission, and natural gas procurement, transportation, solar energy and storage. The Utility served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers during the year ended December 31, 2007.Really strong long term financial data and fairly good dividend yield.I think it is a good time to get into this stock, I am not sold completely on management but I like the business in the next 5 to 10 years to do well and benefit from rising oil prices. I reason i am making a Utility company one of my picks was , when i opened my new electric bill and so that i was paying way to much almost 2x the amount i paid 2 years ago , that is crazy !! can u say profit and inflation ?? so i did some research and found this company to be the best bet for the long term play and short term play ! and with a 4 % DIV. Rate , u cant go wrong !

1 comment:

Penny Stock Blog said...

Some really great stock picks very interesting.