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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (15857)	11/23/2002 12:13:42 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78523

Oil stocks PTR, SNSA, STO Paul: i do like oil stocks right now and PTR looks like a very interesting bet. The stock looks cheap by almost any measure (P/E, price to book, dividend yield, oil reserves). I have not done more than a few minutes of research but here are potential negatives: 1) PTR of course is a concentrated bet on China 2) PTR looks like a legacy company where the government makes the decisions. The legacy companies have liabilities like a huge number of employees (according to yahoo PTR has 440k employees!, corruption etc. ). It is also hard to judge the accounting. With Chinese companies it is important to keep in mind that numbers and documents mean nothing - trust and relationships mean everything. Myself has been doing some research in STO. Statoil is also a formerly state run oil company based in Norway. P/E is about 8 and dividend yield. This is much cheaper than the supermajors. Potential negatives: 1) political influence due to state ownership 2) Tax laws in Norway unfavorable and make international diversification more difficult 3) Uneven reserve replacement record Overall, I think that both STO and PTR are good bets at current valuations.