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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (25799)	9/20/2003 8:27:40 AM
From: Wyätt Gwyön	Respond to of 206316

Unloved Energy In a better economy, it deserves more respect online.wsj.com The analyst consensus is too bearish on oil prices, contends Nicolas Mathys, a fund manager at Zulauf Asset Management. He lists energy stocks as one of the few sectors he likes currently. Firm crude prices should help energy companies continue to beat the already low earnings expectations that both analysts and investors now harbor, he avers. Additionally, Mathys likes the European energy sector's generous dividend yields, which average 3.9%. With the exception of banks, which yield 4%, the remaining groups offer yields that are significantly lower. Banks, however, are likely to be hurt by the higher interest rates that will accompany a rebound, Mathys adds. Energy stocks are "very, very cheap," adds Richard Davidson, Morgan Stanley's equity strategist. The group trades at a price/earnings ratio of only about 13 times 2003 consensus estimates, while the market now sports a P/E of 18. On an enterprise value (market capitalization plus net debt) to earnings before interest, taxes, depreciation and amortization, he points out, it is the lowest-valued group; it trades at 4.4 times 2003 estimates, versus 6.4 times for capital goods, the next highest group, "fully two multiple points difference."