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Navellier's New Look
12/03/2004 12:00 am EST
With its upcoming 25-year anniversary, MPT Review will change its name to Louis Navellier’s Emerging Growth and be redesigned to make the service and its portfolios more " user-friendly." However, one thing unlikely to change will be the newsletter's exceptional record.
"One of the hottest sectors to invest in right now is oil shipping stocks because there’s a shortage of oil tankers throughout the world. All over the world, there’s very little excess oil capacity. Although Saudi Arabia and other oil exporters can boost production as much as they want, there are literally no tankers to ship the extra oil. As a result, oil prices will stay high until new tankers arrive.
"Knightsbridge Tankers(VLCCF NASDAQ) has been rallying with other oil tanker companies and is benefiting from the shortage of oil tankers. During the past four quarters, the company has had over 44% sales growth, and its expanding operating margins will help its future earnings grow even faster. Despite Knightbridge’s incredible sales and earnings, it trades at less than ten times trailing earnings and is an outstanding buy.
"OMI Corporation(OMM NYSE) is another oil tanker company that I’m adding to my Model Portfolios. The company charters vessels to oil companies, oil traders, and government agencies worldwide. OMI is currently expanding its double-hulled fleet, and it’s also profiting from the shortage of tankers worldwide. Despite over 75% sales growth and almost 300% earnings growth in the past four quarters, OMI trades at less than ten times trailing earnings and barely seven times next year’s estimated arnings. The stock has been appreciating steadily, and is still an exceptional buy.
"Income investors have recently discovered that Frontline (FRO NYSE)and other tanker stocks pay very generous dividends. Frontline is now one of the most popular stocks on Wall Street thanks to its generous dividend. It’s always nice to see a company share its profits with its shareholders. Since there’s a critical shortage of oil tankers, Wall Street is anticipating more great things from Frontline. Analysts have been raising their earnings estimates, and Frontline trades at only 4.1 times trailing earnings. Whether you buy the stock for its dividends, its growth, or its low p/e ratio, you cannot go wrong."
In addition to his MPT Review, Navellier also publishes The Blue Chip Growth Letter. Two stocks added to this service's buy list in November were also energy related:
"Amerada Hess (AHS NYSE) is an integrated oil and gas company that conducts exploration and production in Denmark, Gabon, Norway, the United Kingdom, and the US. The company also operates in Indonesia, Thailand, and other countries. Amerada Hess has proven reserves of 646 million barrels of oil and 2.3 billion cubic feet of natural gas. When the company bought Triton Energy, it acquired assets in West Africa, Latin America, and Southeast Asia. Amerada Hess operates a 50%-owned refinery in the US Virgin Islands and another refinery in New Jersey. The company also markets gasoline through 1,195 HESS gas stations, which are mostly in the eastern US. The stock is a great addition to the Buy List, and I expect it to continue to appreciate in a smooth and steady manner.
"Brascan (BNN NYSE) is a Canadian company that is a major holder
of commercial properties, financial services firms, mines, and electric power
plants. The company has made direct investments of $17 billion in assets,
including more than 70 office properties and 120 power-generating facilities.
Its Noranda unit is a major global producer of zinc and nickel. The company also
owns stakes in Norbord (paper), Brascan Power (hydroelectric power), and
Brookfield Properties (real estate). Brascan also has a subsidiary, Royal
LePage, which is Canada's largest residential and commercial real estate broker.
Recently, Brascan completed the purchase of 71 power plants in upstate New York
from Reliant Energy for $900 million. The company is famous for generating very
steady sales and earnings growth as well as paying a nice dividend. I expect
that Brascan will be one of my most consistent-performing stocks in the upcoming
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