Navellier's Energy Plays

01/30/2004 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

"Overall, we're in economic nirvana," says Louis Navellier in his Blue Chip Growth Stock Letter. "I strongly recommend that all investors remain fully invested and enjoy the stock market's ride back to new highs." Two of his latest top buys fall in the energy sector.

"Huaneng Power (HNP NYSE) is one of the largest independent power producers in China. The company owns 14 power plants, plus controlling interests in five more. The company also has minority interests in three other power companies. As China's industrial production continues to soar, the country's energy demands will rise exponentially. Huaneng Power is one of the safest Chinese stocks that an investor can buy. Owning foreign stocks is a good way to reduce your portfolio's volatility because these stocks tend to move independently of American-based stocks. I'm placing Huaneng in the Moderate group with a Buy-Below price of $66.

"The rising price of natural gas due to extremely cool weather should be a boon for Kinder Morgan Energy (KMP NYSE), which operates oil and gas pipelines. The company has been spending its free cash flow by making strategic acquisitions and aggressively buying back its own stock. Kinder Morgan Energy and most pipeline companies are very dependent on increasing demand for natural gas, so the colder it gets this winter, the better the stock will perform. It is now the highest-yielding stock on the Buy List. The company pays a quarterly dividend of 66 cents a share. This is more than twice the dividend it was paying just five years ago."

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