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JimVanMeerten (61.58)

5 Reasons to buy energy turnaround

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August 02, 2010 – Comments (0) | RELATED TICKERS: ENLC

On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio.

Both of my Barchart portfolios are full but there are still some good buys out there.
Crosstex Energy Inc. (XTXI) owns and controls the general partner of Crosstex Energy, L.P., a publicly-traded limited partnership engaged in the gathering, transmission, treating, processing and marketing of natural gas. The partnership has fallen on hard times lately but management is trying to turn it around. They have refinanced some of their debt to more favorable terms, tried to deleverage their positions and made some new ventures into shale oil recovery.

I'm not sure if investors have noticed the turnaround efforts or this might be a good M&A candidate but the stock is on the move in a big way.

The price hit new hits in 12 of the last 20 trading sessions including all of the last 5 sessions. In the past month there has been a 38.13% increase in price. Barchart has a 100% short term buy signal as well as a Trend Spotter (tm) buy signal. The stock trades around 8.30 with a 50 day moving average of 6.54.

Wall Street analysts are predicting a 46.70% increase in sales this year and another 12.60% next year. Earnings per share are estimated to increase 64.80% this year and 105.30% next year.

The investors over on Motley Fool think the stock will beat the market by a vote of 317 to 23 with the more experienced All Stars in agreement 131 to 10.

If you have some extra cash consider Crosstex Energy (XTXI) for the following reasons:

1 - 12 new highs in the last 20 sessions including all of the last 5 sessions

2 -  100% Barchart short term buy signal

3 -  Trend Spotter (tm) buy signal

4  Fantastic analysts projections of increases in sales and earnings

5 - Solid and positive investor sentiment

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication

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