Melissa Davis
Buckling Up to Ride the Oil Roller Coaster
03/04/03 - 06:51 AM EST
Edwards likes Baker Hughes best because it's unburdened by the asbestos taint of Halliburton or the financial problems of Schlumberger. "It has no radiation hanging over it," said Edwards, whose firm owns stock in the company. Still, the clear favorites of most energy analysts are the biggest names in the sector -- companies such as BP BP ADR, ExxonMobil XOM and Royal Dutch/Shell RD, all of which boast pristine balance sheets and more profits than they can reasonably spend. The share prices of all three majors have been punished by investors betting on a fall in energy prices. But experts believe the stocks will recover -- as they always do -- with the overall economy. In the meantime, they recommend parking money in the majors for their dividends alone. All three of the big oil giants pay dividends that fly past those offered by S&P companies in general. "Everybody has been trying to come up with ways to play the price of higher oil, and the stocks just haven't cooperated," said Dan Gillespie, manager of the energy fund at Rydex. "If I were an individual investor, I'd be looking at this dividend yield as a good play." Fadel Gheit, an energy analyst at Fahnstock, agrees. He believes the big three -- in addition to ChevronTexaco CVX -- represent solid, long-term investments. And he urges investors to take their eyes off of rocketing energy prices so they can see the values before them. "It's like driving down the highway," said Gheit, who owns stock in all the majors. "You don't put your nose in the dashboard if you want to see what's coming ahead."
Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Ensco International and Echelon have the potential to move higher in coming days.
See who made what calls.
The addition of video is helping telecom companies compete against cable and satellite companies.
The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.
See who made what calls.
Keep on top of the market and the critical information you need to make more profitable investing decisions.
Sponsored by:




