Four Energy Stocks That Still Have Room to Run
12/02/2010 12:01 am EST
By Josh Golebieski of PortfolioTilt.com
Investors who seek broad exposure to a specific market sector should look no further than the nine exchange traded Select Sector SPDR funds.
Over the last thirty days, the Energy Select Sector SPDR (XLE) has outpaced all other sector ETFs, rising 4.45%. (Below is a look at how the rest of the funds have performed over the last 30 days.)
According to the XLE prospectus, Tthe Energy Select Sector SPDR Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Energy Select Sector Index." The fund is primarily made up of companies that "develop and produce crude oil and natural gas, and provide drilling and other energy-related services."
Lets take a look at some of the leading components within this sector over the last 30 days.
National-Oilwell Varco, Inc. (NOV) is a worldwide provider of the equipment and components used in oil and gas drilling and production operations. Shares continued their run up last week after the company announced a dividend increase this past Thursday.
Varco is currently trading well above its 20-, 50-, and 200-day moving averages, and average daily trading volume has been steadily rising since late September. Out of the four stocks we will be looking at, NOV is the second-best performer over the last 30 days, up 26.5%.
NEXT: Three Other Promising Energy Stocks Now|pagebreak|
Massey Energy Co. (MEE) produces, processes, and sells coal though its 23 processing and shipping centers. The company owns about 2.8 billion tons of reserves, 1.3 billion of which are metallurgical coal, used to produce steel. Massey declared a quarterly dividend of $0.06 per share to be paid on December 31, 2010. Shares of MEE are trading slightly below a 52-week high. Massey has staged a strong recovery from its low this summer near $26. The stock is also trading well above its 50- and 200-day moving averages.
MEE continues to remain strong despite the fact that Massey has come under fire for having the worst safety record of any US coal mining firm. This may be attributed to talk that Coal India is looking to purchase mines from Massey. MEE is the leading performer over the last 30 days, up 40.6%.
FMC Technologies, Inc. (FTI) is a global provider of technology solutions for the energy industry. FMC may benefit over the next few years as global energy demand looks to increase about 10% by 2015. Earlier this month, FMC reached a settlement with the Internal Revenue Service (IRS). Under the settlement, FMC Technologies expects to record a benefit in the fourth quarter of 2010 of approximately $26 million, or $0.21 per share.
The stock is currently trading at a 52-week high, and prices sit well above the 20-, 50-, and 200-day moving averages. Average daily trading volume has been slowly declining since November, and the stock has gained 14.5% over the last 30 days.
Canaco Resources, Inc. (CAN) is a Canadian mineral exploration company. CAN should be considered a more speculative play compared to the other stocks that we have already discussed. Canaco is focused on rapidly advancing exploration projects in Tanzania and throughout Africa. In a meeting last month, the Commissioner for Minerals of The United Republic of Tanzania said that, Itt was in the interest of the government to see that the Magambazi Mineral Property is developed into a large scale mine in the future."
The Magambazi Mineral Property is located within an area in which Canoco owns prospecting licenses. Cooperation with the Tanzanian government is key for Canaco's future prospects. Shares of Canaco are trading just below a 52-week high and slightly above the 20-day moving average. CAN has gained 24.84% over the last 30 days and is also up an astounding 313% over the last 90 days.
By Josh Golebieski of PortfolioTilt.comKeep in sync with the PortofolioTilt.com market updates by following us. We offer a variety of methods to connect with Portfolio Tilt in real time. You can click here to follow us on Twitter. We offer an RSS feed, and for you Facebook fans, we have a page as well. We also offer a morning e-mail update with all of our most recent content. Click here to sign up.