|
COPYRIGHT 2005 Hart Publications, Inc.
As commodity prices have soared during the past few years, so have energy equities. As a result, E&Ps have experienced increased earnings capacities and net asset values have had a serious boost. But as forward-looking oil prices have moved beyond $60 per barrel, it's reasonable to wonder whether the market has set itself up for future highs or if a sudden decline in prices will pull the rug out from under E&P equity returns.
"Although there is a general belief that commodity prices will likely be higher-for-longer, the market typically does not move in a straight line," Michael Bodino, E&P analyst for Sterne Agee & Leach, says in a new report, "Living with Acrophobia."
"We continue to be cautiously optimistic about the ability to generate attractive rates of return for investors in the E&P sector although the 'easy and obvious' stock picks are becoming increasingly difficult...
Read the full article for free courtesy of your local library.
|
Bookmark this article
Print this article
Link to this article
Email this article
Digg It!
Add to del.icio.us
RSS
