This Day On The Street
Continue to site
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

[video] Quick Take: Link: Now Is the Time to Buy Chevron Shares

NEW YORK (TheStreet) -- TheStreet's Jill Malandrino and Stephanie Link, co-manager of the Action Alerts PLUS portfolio, discussed the newfound appeal of energy stocks. 

Malandrino noted that Options Profits recently added to its bullish position in Encana (ECA), while Link said she and Jim Cramer recently added to the AAP portfolio's position in Chevron (CVX)

Chevron recently reported a horrible fourth quarter, and shares are 9% off the highs, Link said. She added that production fell 3.5%, which is also not very good. However, the company continues to pump money into all sorts of different assets, which should eventually produce higher profits in the latter half of this year.

Link is looking for Chevron to reduce its capital expenditures while increasing its operating leverage. The stock should get a boost if this happens, and she said she wants to be in position before the move occurs. 

Luckily, Link and Cramer can wait for the move to occur, with Chevron paying a 3.5% dividend yield and likely raising the quarterly payout in April, she said. 

Must Read: [video] Jim Cramer Quick Take: Panera Bread's Ron Shaich Is One of My Bankable CEOs

In order to make room for the heavier exposure to energy stocks such as Noble Energy (NBL), Occidental Petroleum (OXY), and National Oilwell Varco (NOV) , Link said AAP is reducing exposure to the financial sector to market-weight from overweight and selling shares of Morgan Stanley (MS).  

"I just don't like the way the yield curve is acting in the near term, even if it is temporary," Link said. AAP will buy back Morgan Stanley on a deeper pullback.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs