This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Bargain Stocks to Buy Before 2013

Stocks in this article: COF STT HES MRVL TAP

Hess

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

New York-based integrated energy company Hess (HES) is working hard to get less integrated right now. The firm shut down the majority of its refining capacity in the last year, finally cutting the cord on the most consistently unprofitable part of its downstream operations. That leaves Hess with total proven reserves of 1.5 billion barrels of oil equivalent in North America, Australia, North Africa and the Middle East, and more than 1,360 gas stations spread across the Eastern U.S.

Management showed guts by slashing at its refinery capacity. Disintegrating operations at an oil producer is a scary prospect for most, but with refinery operations becoming increasingly commoditized, it makes sense to unload the earnings drag. The fact that Hess was willing to do it means that management is willing to do more than just kick the can. I like that a lot.

Like other smaller oil producers, Hess carries some balance sheet leverage with around $7.5 billion in debt. But with more than $850 million in cash and investments and a $4 billion credit facility, Hess isn't likely to have any liquidity problems in 2012. The firm's price to book ratio of 0.89 means that Hess is trading at a bargain during a time when crude spot prices sit just below $90. That makes Hess a bargain right now.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs