Navellier Looks at England's Energy

09/24/2004 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

"I'm incredibly excited about this market," says Louis Navellier in his  Blue Chip Growth Letter. "There are lots of terrific bargains. The stocks on our Buy List have the best growth-to-p/e ratios I can remember in  25 years." Among his latest buys are two British energy firms.

"The stock market is completely disconnected from reality. Fears of terrorism, high oil prices and a slowing economy have made investors irrational. However, a relief rally may come soon since the stock market is so grossly oversold. The flow of funds into the stock market is very erratic, and Wall Street analysts are becoming very cautious. In fact, more and more cash is building on the sidelines. I expect a big improvement in the tone of the market after Labor Day. Trading volume will improve, and I expect that a lot of bargain hunters will appear. I encourage all investors to stay fully invested in a diversified portfolio of stocks on our Buy List (which has the best growth-to-p/e ratios that I can remember in the past 25 years) because the stock market is near a record low valuation, and it could explode higher at any time.

"BG Group (BRG NYSE) is headquartered in the United Kingdom. The company specializes in the exploration, production, and distribution of liquefied natural gas (LNG), as well as power generation and transmission. BG Group also owns and operates natural gas-fired power plants. The company is a specialist in the development and use of LNG storage facilities and shipping. BG Group owns and operates major pipelines and distribution networks that supply natural gas. The company operates a fleet of LNG tankers and recently ordered four new tankers from Samsung Heavy Industries. Natural gas is a clean and efficient fuel that does not emit carbon dioxide from natural gas-fired power plants. The US is one of the biggest producers of natural gas and has an extensive pipeline network. As the demand for natural gas grows, the US will have to supplement its natural gas supplies with LNG imports, and BG Group is the world leader in LNG storage and shipping.

"National Grid Transco (NGG NYSE) operates a legal monopoly for the United Kingdom's power and gas grids. Accountable to the government, the company is the sole owner and operator of the electricity transmission system in England and Wales. National Grid transmits electricity through 5,000 miles of overhead and underground lines to distribution utilities serving more than 52 million people. The company also operates the natural gas transmission and distribution system in the UK National Grid also has interests in international transmission, distribution and telecommunications companies, primarily through its subsidiary National Grid USA. The stock has a phenomenal growth-to-p/e ratio. It only trades at 12 times earnings and has posted over 225% earnings growth."

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