2008-09-05 12:05:04 -
- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Sheraz Mian, who Halliburton (NYSE: HAL), Baker Hughes (NYSE: BHI), Diamond Offshore (NYSE: DO), Transocean (NYSE: RIG) and Pride (NYSE: PDE).
A synopsis of today's Analyst Interview is presented below. The full article can be read at at.zacks.com/?id=2678.
How would you
advise investors looking to play the oil & gas space over the next quarter or two?
Almost all of the oil and gas sub sectors have been under pressure in recent days due to the weakness in oil prices. On the whole, stock prices still reflect long-term oil prices that are significantly below current levels; so they have a lot of room to catch up. Some of these were cheap even before the current oil price weakness and are currently at very attractive levels.
One major sub-sector is oilfield services and drilling. These companies do not need oil prices to be around $130-$140 to make a lot of money; they will be doing equally good in a $90-$100 oil environment. My top picks in this group include Halliburton (NYSE: HAL), Baker Hughes (NYSE: BHI), Diamond Offshore (NYSE: DO), Transocean (NYSE: RIG) and Pride (NYSE: PDE), to name a few. While the first two are integrated service companies, the last three are offshore drillers, with rigs capable of operating in very deep waters.
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The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month.
The portfolios created monthly from 1988 through September 2006 exclude ADRs and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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Mark Vickery
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