Chevron Texaco (CVX)

Valuation across the big cap space is quite low in general. If you look at this company over the last 20 years or so, you still have 15%-20% upside on where they traded on average over that timeframe.

Decent dividend yield. Best held in an RRSP to get the best effect of the dividend. It has been following one of his structural prices at 1.5 times book value and has been for a long time. The slope of the growth of the book value is running at 12-13%. You get this plus the yield. Great balance sheet and earnings look fine. Put it away and forget about it.

They pre-announced last week so it drove the stock down. Model price $171.37, 45.64% upside. 3.4% dividend yield.

Coming out of a period of spending, building massive energy projects, especially in Australia. Have a very good history of allocating capital well. Production growth will really ramp up in 2014. Doesn’t think prospects for next year are priced into the stock.

As economy has been getting better, oil has been going up. Oil stocks have been in a mini bear market, but the large ones have huge value, he has a $177.48 model price. The market will recognize the value in this stock.

$167.34, 43% upside. Yield of 3.42%. Buy at $113.24 is his prediction of a pull back level.

(A Top Pick May 18/12. Up 23.9%.) Expects another 30% upside from here. His model price is $174.20. Dividend yield of 3.2%.

Model price $164.62, 42% upside. 3.1% yield. Great value, EBV lines go straight up.