SPDR S&P Oil & Gas Explore & Prod. (ETF) (XOP)
Exchange traded fund
Recs
Great recovery play. Excellent long-term outlook doesn't hurt as emerging economies will continue to rely heavily on fossil fuels.
Recs
There's still a LOT of room to run in energy.
Recs
As the economy recovers and spending increases, fossil fuels will be in greater demand than ever. There is a push to "go green", but that is many years off and developing countries don't have the luxury of indulging in eco-friendly practices.
Recs
Generally bearish on commodities. I expect the US Gov't won't be able to increase the money supply adequately to account for the tremendous loss of credit-based purchasing power. A reduction in the real money supply (including credit) will reduce economic demand and drive prices down. Commodities should correlate more with the dropping prices than companies of the S&P who have more to offer than just a particular asset. This should equal points in CAPS.
Recs
natural gas, maybe the northeast should convert from home heating fuel to natural gas
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Oil exploration critical to economy during middle east turmoil & increase demand for world.
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etf for major oil companies (diversified and international) Need i say more?
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Same as last summer, gas goes up Exxon cashes in on the poor.
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With the recent decision to keep oil supply at current levels after the recently concluded OPEC conference, it’s good news for the oil sector. Moreover the conference observed that the world economic performance in 2007 to remain relatively firm with early indicators showing that the market remains well supplied with crude oil and would experience overall oil market volatility.
The SPDR Standard and Poor Oil & Gas Exploration & Production Select Industry Index is an equally weighted index that represents the oil and gas exploration and production sub-industry portion of the Standard and Poor’s Total Market Index. Performance of the fund in the previous years has been good with average annualized return for the past three years at 35.65%. With net assets of approximately $17 million it is trading attractively at a price to book value ratio of 2.1 and price to earnings multiple hovering around 11.
The increased capital spending capital spending by major oil companies and state-owned oil companies represents huge opportunities for drilling, exploration, refining, marketing and other related services. Moreover optimization and other technologically advanced services represented a huge demand for low cost services in drilling that would result in efficiency and cost savings. Increasing field depletion rates and high day rates favor the oil drilling companies. Endorsing the same there are more than 100 oilrigs construction in the pip line and huge scope rests in deepwater and mid water semi submersible market.
ExxonMobil tops the list with huge potential as it is investing in more than 20 new projects around the world over the next three years that should add 1 million barrels of oil equivalent per day to its volumes at peak production. Other companies in the list are Conoco Philips, Chevron, Sunoco and Valero that have excellent growth prospects, making it a worth investing fund.
Recs
energy is their business and they do it well

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