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JimVanMeerten (65.41)

Some SUN in the oil sector

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June 22, 2010 – Comments (1) | RELATED TICKERS: SUN

On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio. Sunoco, Inc. ( SUN ) is principally a petroleum refiner and marketer with interests in coke making. Sunoco's petroleum refining and marketing operations include the manufacturing and marketing of a full range of petroleum products, including fuels, lubricants and petrochemicals, and the transportation of crude oil and refined products. These operations are conducted principally in the eastern half of the United States. Sunoco's coke making operations are conducted in Virginia and Indiana.

For those of you that are gun shy about offshore drilling accidents here is a stock that spun off it's exploration and drilling divisions and just concentrates on refining and distribution.

Income investors should note that the 60 cent dividend is expected to increase to 80 cents and is covered by an $8.70 per share expected cash flow and a $3.50 per share earnings stream. Right now though price appreciation is the story.

The stock hit new highs in 12 of the last 20 trading sessions for a monthly increase of 23.13%. The stock trades around 34.87 with a 50 day moving average of 30.65. On Barchart the technical indicators have 12 of 13 possible buy signals for an overall buy signal of 96%.

Investor sentiment as measured on Motley Fool is extremely high with the CAPS members voting 560 to 53 that the stock will out perform the market and the All Stars are in agreement 176 to 5.

Wall Street brokerages think this is a long term hold with 13 hold reports published but 3 firms still recommend clients continue to buy. Sales are expected to increase 10.30% this year and continue to increase next year. The recent price jump might be attributed to their earnings projections of 445.50% this year and 99.10% next year.

If you're looking for an oil stock without drilling exposure that has more than adequate coverage on their dividend you might want to consider Sunoco ( SUN ) and maybe get a quick pop on the price appreciation.




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

1 Comments – Post Your Own

#1) On June 22, 2010 at 11:10 AM, ragedmaximus (< 20) wrote:

oil and drybulk sectors are in vats of acid right now along with retail go to techs

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