"Back to the Oil patch to find more value and good fundamentals with Oil Services Company, Halliburton Co."

Dow Jones Industrial Average 13,005 (Up) - the close Tuesday , February, 28th

"Founded in 1919, Halliburton is one of the world's largest providers of products and services to the oil and gas industry. It employs nearly 70,000 people in approximately 80 countries.
Halliburton's fascinating and proud history reveals a continuous focus on innovation and expansion that began with the company's founder, Erle P. Halliburton. After borrowing a wagon, a team of mules and a pump, he built a wooden mixing box and started an oil well cementing business in Duncan, Oklahoma."  This is how it started according to Halliburton's website.

Halliburton Co. (Symbol HAL, $37.68) and other Oil Service stocks have been lagging the market recently despite the great rise in the price of West Texas Intermediate Crude ($106.60 per barrel). This despite having 25 Strong Buy recommendations from analyst and 9 Overweight ratings. Halliburton is projected to earn $3.93 per share in 2012 and 2013 earnings are looking like $4.58 per share. This reflects a forward PE of 9.6 which is way below the market average. A couple reasons for this are the fact that earnings from gas drilling are expected to slow up a bit because of a supply glut and nowhere to store the surplus natural gas. Second, Halliburton's name has been mentioned in the big BP and TransOcean oil rig leak in the Gulf of Mexico, because they were the cementer.

But there is no denying the numbers. HAL, (like in 2001 a Space Odyssey), has a company Return on Equity of 25%. Also, although the one year total return on the stock is -19%, the three year Total return on the stock is actually 137.5 %. Ebitda continues to rise each quarter and Revenues have been on a steady quarterly rise. Plus one of these days they are going to let you do some offshore drilling off the coast of the USA. We better do it quick because the Chinese already have a rig in production off the coast of Cuba!  

 Halliburton states on their website that "As we work with our customers and suppliers to develop global energy resources, sustainability is an integral part of our business strategy and a key driver in all of our business activities. Our innovative technologies and our operational experience and expertise enable us to minimize our environmental impact and successfully manage the social challenges and inherent risk that are present in our industry."

So Freewilly says Drill, Drill, Drill and make some investment in the great stock value which is Halliburton"

Freewilly

"The oil in the Alberta Tar Sands needs to go somewhere. Whether it goes south or whether it goes west , Enbridge (Symbol ENB), will be involved"

Dow Jones Industrial Average  12,950 (Up) Week Ending 02-17-2012

First a report from Bloomberg NEWS:

"Feb. 17 (Bloomberg) -- Enbridge Inc. fell the most in almost three year after disclosing that Noverco Inc., which owns 8.9 percent of the Canadian pipeline company, plans to sell a third of its stake.

Enbridge, the largest transporter of Canadian crude to the U.S., fell 4.1 percent to C$37.58 at the close in Toronto, the biggest decline since Feb. 23, 2009.

Noverco, a holding company that’s 61 percent-owned by Caisse de Depot et Placement du Quebec, Canada’s largest pension fund, plans to sell 22.5 million of its 69.4 million Enbridge shares. Enbridge owns the other 39 percent of Montreal-based Noverco. The sell off will result in $300 million for Enbridge, the Calgary-based company said in a statement.

Noverco is selling the shares to rebalance its asset mix, Enbridge said in the statement. The sale represents 2.9 percent of Enbridge’s outstanding shares, according to data compiled by Bloomberg."

This news should create and opportunity to buy some Enbridge (Symbol ENB, $37.73) here in the next few weeks at some discounted prices.  Enbridge owns some of the premier oil pipelines of the world with 2 more projects planned that could really expand them.

One, the TransCanada's Keystone XL pipeline which is an expansion of the existing Keystone pipeline has been initially stalled on the US end by President Obama. Stephen Harper ,Canada's Prime Minister ,says "if we can't send the oil south then we will send it west to countries that want to buy it." 

Which is the second project:   

Enbridge Northern Gateway project. There is opposition to this project by the Regional Districts and the Indian Coastal First Nations. Under the current proposal, the controversial pipeline  $5.5-billion would carry 525,000 barrels of oil sands-derived crude from Edmonton to Kitimat, B.C. One concern is the environmental impact of tankers coming in and out of northern coastal waters with risk of a spill in the major fishing areas along the coast.

I believe that Apache Corp. (symbol APA) is getting ready to start mid-2012 a Kitimat LNG project and terminal for Liquified Natural Gas. So there will be tankers coming in and out of this port already anyway. The Canadian government will need to plan this well and have a sophisticated traffic scheme in place to avoid any accidents that would effect the local fishing industry and ecosystems. I believe that both of these projects will eventually get approved and built.

Enbridge, symbol ENB, should earn $1.65 per share in 2012 and $1.86 per share in 2013. Enbridge pays out a 3% dividend yield and has a 12 month Total Return of 29.4% and a 3 year Total Return of 170.8% . This is why Caisse de Depot needs to rebalance their portfolio! 

So look to buy this in the $34-$37 range and be patient for it to come in.

My thoughts and prayers are with my brother-in-law, George Zwicker, who we lost this week on Valentines Day, Feb 14th to a heart attack during a hospital procedure. George lived in Berlin, New Hampshire, USA and grew up in Springfield, PA. and he will be greatly missed.

 Zwicker is certainly a recognized last name in Nova Scotia and the eastern coastal areas of Canada.

Freewilly

"Sitting here watching American Pickers on the History Channel. I am amazed at the endless interest going on in other people's Surplus Assets"

Dow Jones Industrial Average 12801.23 (Down) Week ending 02-10-2012

Everybody seems to want everybody else's old stuff. It is like the Yankee Magazine swap page gone wild.    Ebay, Craig'sList, Amazon, pawn shops, swap meets, flea markets and people swapping texts and emails on their smartphones makin deals and trades. Odd ball items of all sorts changing hands. Everyone trying to raise cash and parlay it forward into more exciting stuff.

 It was no surprise to me that someone has made a real business out of surplus assets. But what really surprised me was when I discovered that Liquidity Services, Inc. ( Symbol LQDT, $40.12) showed up as Numero Uno in IBD's top 100 list from last week. CNBC's profile says that "Liquidity Services, Inc. is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories."  Looks like 'swap-meet gone global'.

They don't sell & collect any antique pinball machines but they have all kinds of other stuff.  It is more likely that they have government surplus half-track trucks or motorcycles for sale.  Projected long term earnings growth here is 30% per year. 2013 earnings are projected at $1.62 per share.  The one year Total Return on the stock is 150.2%.  The 3 year Total Return has been 755.3%. 

I have been talking about a lot of high momentum stocks here in 2012. They do have a degree of risk to them, and do not have the traditional year over year fundamentals that I usually look for and recommend. I guess the 2012 election year has me looking forward to better times. These stocks have also run up a bit this year, so I would approach them cautiously and buy in in increments, rather than all at once. I think you are OK on this one though, they are growing pretty quick.

Could be a tense week, with the Iranian's spouting off about their current Nuclear acheivements. It could give the market an excuse to take a little profit of the table this week.

Freewilly

" So it's SuperBowl weekend and they have finished up another WingBowl here in Philadelphia. So there's nothing left to talk about but Buffalo Wild Wings"

Dow Jones Industrial Average 12862.23 (UP)  Week ending 02-03-2012

Takeru Kobayashi mastered Philadelphia's annual Wingbowl noshing event by eating 337 chicken wings in a half-hour before a crowd of nearly 20,000 at Wing Bowl XX at the Wells Fargo center in Philadelphia , PA.. Kobayashi beat the record of 255 set last year by Jonathan "Super" Squibb. WingBowl was founded in 1993 by Philadelphia talk-radio hosts Angelo Cataldi and Al Morganti as a celebration of gluttony.  The contest was first broadcast on WIP

The WingBowl was invented to distract us from the fact that another year passes by without our Phillly Iggles (Eagles) being in the SuperBowl. Another fact is that you can be making money off of this national craze for football and chicken wings.

 BUFFALO WILD WINGS (Symbol , BWLD, $70.30)  is a company on the move. There ranking in Investors Business Daily is 99-95-88 B+ B+.  This fast growing company will have 2011 earnings per share of $2.67 and 2012 earnings per share of $3.20 a share.  They are taking all their money and plowing it back into the company into new stores. Five year sales growth here of 21.46% and earnings growth for five years of 23.32%. One year total return of 32.7% and 3 year Total Return on your stock investment of 127.7%. No chicken left on bones here as far as productivity. You can eat healthy here too with a nice spicy Chicken wrap sandwich.

You also will need something to wash down all those wings. Monster Beverage Corp. (Symbol MNST, $105.70) will kick up the energy for you. This little diddy has a one year total return on the stock of 83.7%. The 3 year Total return  is a cool 217.6%. That will put a little energy is your step. The return ROE (Return on Equity) for the company is 24.9 %. Now I know why they call it Monster! 

It is 6:10 PM EST and it is time for my SuperBowl prediction. I should note that I am better picking stocks, then I am football scores.                                                                                                      Patriots 31 -Giants 27                 

I am a closet Eli Manning fan and Freewilly will be cheering for our NFC East division rival New York Football Giants as Howard Cosell used to call them.

Freewilly

"SILVER WHEATON - SLW - looks like a great investment here with the Fed staying pat hand until 2014"

Dow Jones Industrial Average 12,660 (Down)  Week ending 01-27-2012

This was the week that the FED said that they were not going to do anything with interest rates until 2014. Hmmn??  Just a quick pick here this week based on that little tidbit of information.                                                                                 SILVER WHEATON, (Symbol SLW, $36.23, up today Feb 1st) is a company that according to their profile operates as a silver streaming company in the world. There are Eleven strong buy recommendations on this stock. 2011 earnings per share of $1.64 and projected 2012 earnings of $2.29 per share make this a very interesting story.  

SLW records a Net Profit margin of 75.3% and has a Total 3 year return of 448.1%. Starting to get the picture here? They even throw in a 1.01% dividend yield.  

Silver has had quite a run here and this may look like a trap trade based on history, but these are rampant deflationary times (especially in housing) and people will look to retain the value of their assets. Silver gives you a lot  more leverage than Gold because of the lower price point. 

The company also has a fantastic balance sheet. It has a current ratio of almost 6:1.

Have a good week. February usually presents some good opportunities for purchasing stocks.

Freewilly