We added ExxonMobil Corp to the Conservative Portfolio in the Aug. 24, 2011, issue, Playing It Safe. We’ve cycled in and out of ExxonMobil over the years and last booked a 40 percent gain on the stock after holding the stock from July 2010 to June 2011. In August, we took advantage of the selloff that followed Standard & Poor’s downgrade of the US’ sovereign credit rating to pick up the stock at a discount.

As ExxonMobil is considered one of the safest names in the energy sector, the stock is often one of the first names investors buy when they return to the energy patch. My decision to sell the stock from the portfolio has nothing to do with the company’s fundamentals; rather, the stock rallied sharply in the final months of the year and appears overbought in the near term.

Among the integrated oil companies, I prefer shares of Chevron Corp (NYSE: CVX), which boasts the potential for superior production growth, and Italian energy giant Eni (Milan: ENI, NYSE: E), which offers a superior yield and value after the selloff of Italian equities. Sell ExxonMobil Corp and book a 17.7 percent gain. Chevron Corp rates a buy when the stock dips below 105, while Eni’s American depositary receipt is a buy up to USD52.