Weiss: The Story of Our Time

01/30/2004 12:00 am EST

Focus:

Martin Weiss

Chairman, Weiss Research, Inc.

"While front-page headlines proclaim the glories of the stock market rally, the truly big story of our time is that the dollar decline will accelerate, driving natural resources dramatically higher," says Martin Weiss. Here are his top energy picks.

"Natural gas is up 59% in the past three months. Heating oil has risen a whopping 40% since last September. Crude oil has jumped 25% in the same period. With energy and commodity prices now in a confirmed uptrend, more capital is bound to flow into new exploration. That will drive up the business and shares of companies like Diamond Offshore Drilling (DO NYSE), which operates drilling rigs across the globe. The shares are strong and have recently suffered a minor setback. Buy at $21 or lower.

"In addition, oil-service companies, which have not yet fully participated in the energy stock run-up of recent months, could be the next to make a substantial move. Among them, Tidewater (TDW NYSE) is a leader. Oil producers realize that production has to be increased. That should boost the order books for drilling rig providers such as Diamond Offshore, and the increased activity should cause still higher demand for personnel and related services in the sector, like those that Tidewater provides. The firm transports crews and supplies to the exploration sector and its shares should benefit as the energy sector moves to more permanent production levels. It also tows mobile rigs and helps in seismic exploration of oil. Buy at $30 or lower."

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