Energy Stocks for the Long Haul
Energy stocks have gotten hammered recently, but Scott Richter, who manages the Fifth Third All Cap Value Fund, sees opportunities in the sector.
“Hedge fund redemptions, a slow economy, credit crisis are near-term stressers, but the long-term supply-demand balance is still in the favor of the bulls," said Richter. "So if you can accumulate these over the next several quarters, I think you can make some money over the haul," he added.
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Richter’s first pick is Exxon Mobil .
“It’s cheap, number one, (has a) great balance sheet, which you have to have in a credit crunch, and they’re going to get a lift from ENP projects in Brazil…and gas shale projects in Eastern Europe.”
He also likes XTO Energy , which he calls a “defensive play.”
“Real high-growth production profile, a low-cost producer, which you have to have in this difficult commodity environment, and they have a large inventory of very low-risk U.S. projects that they can do that aren’t tied to leases and aren’t tied to the capital markets.”
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