Occidental Petroleum Corp (NYSE:OXY)

CAPS Rating: 4 out of 5

Principal businesses consist of two industry segments. The oil and gas segment explores for, develops, produces and markets crude oil and natural gas. The chemical segment manufactures and markets basic chemicals, vinyls and performance chemicals.

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Player Avatar BSHumphreyII (80.63) Submitted: 1/21/2009 12:28:06 PM : Outperform Start Price: $50.19 OXY Score: -3.43

I like this company. Big growth, good investment returns, manageable debt, and a decent amount of cash are all key in this environment. Their new contract with Bahrain should help keep their production costs low. Oil is still volatile, but seems to be channeling upward, and I think gas is even more undervalued right now. I also like the chemical exposure; chemical stocks have been performing relatively well lately.In all, I think Occidental, like other oil stocks with big gas exposure (such as COP), is undervalued and will outperform the sector, to say nothing of the S&P, as oil and gas prices recover. Strong buy in the low 50s.

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