1. Sinopec ( SNP) is a China-based integrated oil & gas and chemical company. The company generates around three-fifths of its revenue from its refining segment, while exploration and production and chemicals contribute the remainder.

Sinopec owns eight of the top ten refineries in China and its refining capacity is ranked second globally. China's new refined oil pricing mechanism in 2008 turned Sinopec's refining business around, after years of loss making. However, the giant refiner is vulnerable to any spikes in crude oil prices as it buys more than 70% of its supply from the global markets. As part of its diversification plans, Sinopec intends to build shale gas resources.

Net income jumped 12% during the second quarter of 2011, while revenue improved 31.5%. For the first half of 2011, output was 253.88 billion cubic feet of natural gas and 150 million barrels of crude oil, representing an increase of 70 basis points from the same period last year, respectively.

Analysts polled by Bloomberg have 100% buy rating on the stock. Upstream asset injections from parent company and changes to refined product pricing mechanism could trigger upsides. The stock has appreciated 23% so far in 2011 and analysts' consensus estimate expects 19% increase over the next one year. The stock is trading at 6.4 times its estimated 2011 earnings.

If you liked this article you might like

Irma and Harvey Busted Algos; Probably Done Deals Under Trump: Best of Cramer

Dow, S&P 500 Set New Records as Fed Moves to Unwind Balance Sheet

Stocks In Negative Territory as Chances for December Hike Surge

Energy Stocks Lead a Neutral Market Even After Oil Inventories Spike

Cramer: Under Trump, These Are Probably Done Deals