Marathon Oil

MRO-N

He is a long-term believer in energy. North America is becoming more and more energy independent and owning North American energy companies is the right way to go. Crude potentially has more downside to go. Evaluation is starting to look compelling on a long-term basis. A little early.

(A Top Pick June23/11. Down 20.32%.) With its spinoff from the refining and marketing it is down about 10%. Still likes.

Starting to look interesting. Getting cheap. One reason to be negative on it is that they are all over the map so it is hard to get a sense of what they are doing.

They are spinning off their refinery and marketing next week giving you a pure play in exploration/production. Almost up 60% over the last year. Very well run with excellent growth prospects. Reasonable dividend of about 1.5%.

Ranks very well in his quant model. Cheap at about 8X forward earnings. Has treaded water in the last month or so but that is not bad considering oil prices have come down.

If you’ve held it for a while, the decision to split the two businesses is positive. Recommends holding onto the oil. Refining spreads have really escalated.

(Top Pick Apr 3/08 Down 40%) Oil. No bullish estimates out there. Model price of $37, 30% upside. Had it for some time. Are still buyers.

(A Top Pick March 5/08. Down 84.9%.) Sold the holdings in his funds July/05 but has some personally. A name you might want to start looking at again. The problem is a disproportionate weighting in the refining sector.

An oil/gas production company as well as one of the largest refining operations. Believes you are getting the refinery operations for free. Once things get back to a more normal situation, profitability should start increasing.

Fundamentally, oil will continue to go higher. We are producing 87 million and are demanding 87 million. Not sure why this stock has dropped as management seems to be doing the right things. This will require patience.

Probably has the largest component of all the integrateds. Model price is $78.68, a 55% positive differential. Continuing positive earnings estimates.

Has a model price of $77.93, a 50% positive differential. Has a larger refining business than most of the others. Very cheap.

Likes the cheap energy stocks in the US. His model price is $73.18, a 54% positive differential.

Has a fair component that is refining. Also has several growth engines including Norway, Equatorial Guinea and the Gulf of Mexico. Production is coming on. Dirt-cheap. Trades at about 3.2X forward cash flow multiple, which is cheap.