Santos Limited (ADR) (STOSY)

Sqwii (< 20) Submitted: 6/01/08 3:29 PM : Start Price: $83.86 STOSY Score: -9.95

This is crazy especially with oil hitting $135/barrel during this week. This company is engaged in the exploration, extraction, and production of oil, primarily. They are also involved in natural gas/lng production/exploration. What makes this stock stand out from the rest of the pack though is that it is engaged in the exchange of hydro-carbons between different companies, countries, and regions of countries.

They just announced a few days ago that one of their main competitors wanted to get in on a MASSIVE LNG project, with the company Petronas buying a 40% stake worth around $2.5 billion so they must see something in the companies activities...

They are engaged in oil exploration/production in many different south east asian countries: indonesia, japan, thailand, vietnam, india, and egypt among others. These are some of the fastest growing areas of the world as far as increased demand for oil goes and it is individuals within these countries, and other emerging markets like them, that are driving up the price of oil. They arent to blame, its just the realities of supply/demand.

The company only trades at 31 times earnings, which for the oil industry is nothing...plus they are a highly specialized company with a large market share of a consistenly expanding market.

They have a clean balance sheet, no excessive debt, and a positive cash flow. This company has been nothing but great for me and i have already seen 25% returns...but dont let that make you think that you cant get in on this one or that youve missed the boat or w/e. if you dont believe me, check the charts for yourself...this stock is headed for the tops...id expect $90-95 by the end of june and who knows where it could be at by the summer...a note though, this stock will tend to pull back after reaching new peaks so make sure you continue to do your homework on this one and skim profits off the top when you have them...happy hunting

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