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Wednesday, December 27, 2006

Energy Sector Bargains

I just received this from Wayne Burritt, head researcher for Energy Options Alert and Energy Windfall Trader...

Wayne adds: In spite of big upward price surges, the shares of many energy-related companies are still dirt-cheap. As you can see from this graph, shares of Major Integrated Oil & Gas companies carry an average price-to-earnings ratio (P/E) of just 8.6. Meanwhile, Independent Oil & Gas companies have an 8.8 P/E, Oil & Gas Drilling & Exploration companies a 10.1 P/E, Oil & Gas Refining & Marketing companies carry a 10.5 P/E, and Oil & Gas Equipment companies a 17 P/E. Compared to the 21.2 P/E for the S&P 500 -- a good proxy for the broader market -- all these energy groups are way, way undervalued.

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