Stack Sticks with EnCana

01/03/2003 12:00 am EST


James Stack

President, Stack Financial Management

From moving to cash just prior to the 1987 crash, calling the 1991 bottom, and then turning bearish at the top of the high tech bubble in 2000, Jim Stack has consistently kept investors on the right side of the market's long-term trends. His outlook is based on an unequalled analysis of historic market and economic trends. For his 2003 pick, the editor of InvesTech Market Analyst, selects natural gas producer, EnCana. 

"Our top pick for 2003 is EnCana Corp. (ECA NYSE). The improving situation for natural gas is compelling. Weekly inventories of stored gas have fallen below the previous 5-year average for the first time since mid-June 2001, and spot gas prices have nearly doubled since this date last year. An improving economy and the large number of new gas-fired electric generation plants coming online will only increase demand.

"EnCana is positioned to benefit from this picture. It is the largest independent natural gas producer in North America and owns one of the largest gas storage networks. Nearly 90% of reserves and production are located in western Canada and the US Rockies. In addition to maintaining its record as one of the lowest cost independent operators, the company expects sales on existing lands to grow 10-12% in 2003."

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