Flying under the Radar
In This Issue
When most investors think of energy stocks, mega-caps such as Chevron Corp (NYSE: CVX) and Schlumberger (NYSE: SLB) usually come to mind. These giants should form the cornerstone of an investor’s portfolio, and both feature prominently in our model Portfolios.
But some investment opportunities fly under the radar.
We constantly monitor the pipeline of energy-related initial public offerings (IPO) for high-quality names that offer considerable upside. After poring over S-1 and S-1/A regstration statements that companies considering an IPO file with the Securities and Exchange Comission, we’ve identified three names that warrant further attention once they go public.
Those unfamiliar with the energy sector also often overlook the industrial companies that provide critical components and services to the oil and gas industry. Here are two small-cap industrial names that generate more than 50 percent of their revenue from energy-related end markets and stand to benefit over the long term from their exposure to key growth trends.
The Stories
1. We continue to expect the global market for liquefied natural gas (LNG) to expand significantly in coming years. Here are our top plays on this trend and an upcoming initial public offering that we’re monitoring. See Super-Cooled Natural Gas is Red Hot in International Markets.
2. The best US oil and gas trusts offer investors high tax-advantaged yields, the promise of significant near-term distribution growth and potential upside from higher commodity prices. Do the latest initial public offerings live up to our investment criteria? See New Royalty.
3. Here are two small-cap industrial names that generate more than 50 percent of their revenue from the oil and gas industry and stand to benefit over the long term from their exposure to key growth trends. See Industrial Strength in a Small Package.
The Stocks
BG Group (LSE: BG/, OTC: BRGYY)–Buy < GBp1,650 (GBP16.50) in Growth Portfolio
Teekay LNG Partners LP (NYSE: TGP)–Buy < 41 in Conservative Portfolio
Golar LNG Limited (NSDQ: GLNG)–Hold in How They Rate
Golar LNG Partners LP (NSDQ: GMLP)–Hold in How They Rate
GasLog (NYSE: GLOG)–IPO Expected March 29
SandRidge Mississippian Trust II (NYSE: SDR)–IPO Expected in Early April
Pacific Coast Oil Trust (NYSE: ROYT)–IPO Expected in Early April
Mistras Group (NYSE: MG)–Buy < 23 in Energy Watch List
Robbins & Myers (NYSE: RBN)–Buy < 45 in Energy Watch List
When most investors think of energy stocks, mega-caps such as Chevron Corp (NYSE: CVX) and Schlumberger (NYSE: SLB) usually come to mind. These giants should form the cornerstone of an investor’s portfolio, and both feature prominently in our model Portfolios.
But some investment opportunities fly under the radar.
We constantly monitor the pipeline of energy-related initial public offerings (IPO) for high-quality names that offer considerable upside. After poring over S-1 and S-1/A regstration statements that companies considering an IPO file with the Securities and Exchange Comission, we’ve identified three names that warrant further attention once they go public.
Those unfamiliar with the energy sector also often overlook the industrial companies that provide critical components and services to the oil and gas industry. Here are two small-cap industrial names that generate more than 50 percent of their revenue from energy-related end markets and stand to benefit over the long term from their exposure to key growth trends.
The Stories
1. We continue to expect the global market for liquefied natural gas (LNG) to expand significantly in coming years. Here are our top plays on this trend and an upcoming initial public offering that we’re monitoring. See Super-Cooled Natural Gas is Red Hot in International Markets.
2. The best US oil and gas trusts offer investors high tax-advantaged yields, the promise of significant near-term distribution growth and potential upside from higher commodity prices. Do the latest initial public offerings live up to our investment criteria? See New Royalty.
3. Here are two small-cap industrial names that generate more than 50 percent of their revenue from the oil and gas industry and stand to benefit over the long term from their exposure to key growth trends. See Industrial Strength in a Small Package.
The Stocks
BG Group (LSE: BG/, OTC: BRGYY)–Buy < GBp1,650 (GBP16.50) in Growth Portfolio
Teekay LNG Partners LP (NYSE: TGP)–Buy < 41 in Conservative Portfolio
Golar LNG Limited (NSDQ: GLNG)–Hold in How They Rate
Golar LNG Partners LP (NSDQ: GMLP)–Hold in How They Rate
GasLog (NYSE: GLOG)–IPO Expected March 29
SandRidge Mississippian Trust II (NYSE: SDR)–IPO Expected in Early April
Pacific Coast Oil Trust (NYSE: ROYT)–IPO Expected in Early April
Mistras Group (NYSE: MG)–Buy < 23 in Energy Watch List
Robbins & Myers (NYSE: RBN)–Buy < 45 in Energy Watch List
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