Total SA. (ADR) (TOT)

Total SA (TOT) is a French oil giant and is among the top-notch in the global oil and gas integrated sector. The company has heavily invested in the exploration and production business eyeing the huge potential in the segment. The company’s business is across the entire oil and gas value chain giving it a hedge against volatile oil prices.

The company is well diversified with operation in over 130 countries across the globe. However, a substantial amount of current production comes from North Sea, which is a mature area. Nevertheless, TOT has a lot of upcoming projects in the Middle-East and West Africa, which are considered to be very promising. Further, it has over 80 years of experience working in these areas. In addition, TOT has entered Iran, which has a great potential and is a region where US companies are not allowed to currently explore. Additionally, the company has plans to start production from several large fields in Angola, a diamond in the company’s portfolio. With high success rates and aggressive expansion strategies, the production levels will remain high, going ahead in 2007. Adding to the positives, the company has less exposure in the US, where the production rates are continuously falling, due to it being categorised as a matured area.

On the flip side the labour problems in the company’s refinery segment, which had earlier halted production is posing as a threat and has to be looked seriously. Further, the chemical business, which is TOT’s least profitable business, employs the majority of the workers. However, on the back of strong fundamentals coupled with growth oriented strategies, the stock price will climb the ladder swiftly.

Why not making some easy points on CAPS...

1. It's Oil. Big Oil
2. Not so Low P/E, but acceptable.
3. Check gurufocus.com....some gurus like this stock too.
4. Return on Equity is nearly 30%

It's a value pick, can't miss it...

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates in three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration and production of oil and natural gas.

Near-term pan on almost all things commodities. Going a bit against the crowd on these but will use these pans as a reminder of how much they have gone down near-term to possibly nibble in select commodities plays on decent pullbacks.

Gas Prices will stabalize during a recession and TOT will be a good to ride out. Good Luck!

TOT is well-positioned to weather short-term oil prices and soar when oil and gas do several years down the road. Porduction costs still make its reserves accessible in the short term, and the company has a nice dividend from current cash flows.

Perhaps the best value in terms of integrated oil firms. Great footprint in Europe and poised to have a great 2008. Getting paid in Euros, and paying for crude in dollars certainly doesn't hurt either. Compare to Exxon Mobile and you'll find a much better value here.

A good oil stock that will pick up when the price of oil goes up.

Hate the French, but even they have a part of the Energy market.

Integrated Oil and Gas.

Only a matter of time before oil soars to new records, so why not get in now

Undervalued

Oil will raise again. Undervalued compared to competitors.

Bottom fishing

Good value compared to industry.

Excellent oil play.

Safe Yield/ High Yield Screen

morningstar screen

Excellent energy company with very good growth potential. They are a major global player that is a bit off the beaten path compared to the XOMs and COPs of the world. They also are more diversified and have other revenue sources to draw on when energy prices fall (like now).