(1) a huge inventory of drilling opportunities [Barnett, East Texas, South Texas, Trinidad and the North Sea],
(2) growing emphasis on crude oil production, now growing at a 30-50% annually rate,
(3) strong technical competence,
(4) solid growth in production.
Negatives:
(1) its exposure to natural gas,
(2) fluctuations in energy prices,
(3) unsuccessful drilling and cost overruns.
EOG is rated A by Value Line, carries a 29% debt to equity ratio and its stock yields 0.7%.
Statistical Summary
Stock Yield | Dividend Growth Rate | Payout Ratio | # Increases Since 2002 | |
EOG | 0.7% | 8% | 15% | 10 |
IND | 1.7 | 3 | 30 | NA |
Debt/Equity | ROE | EPS Down Since 2002 | Net Margin | Value Line Rating | |
EOG | 29% | 9% | 4 | 13% | A |
IND | 38 | 12 | NA | 18 | NA |
Chart
Note: EOG stock made good initial progress off its March 2009 low, surpassing the down trend off its May 2008 high (straight red line) and the November 20008 trading high (green line). Long term the stock is in a trading range (blue lines). EOG broke the up trend off its March 2009 low in mid 2010 and re-set to an intermediate term trading range (purple lines). The wiggly red line is the 200 day moving average. The Aggressive Growth Portfolio owns a 75% position in EOG by virtue of having sold 25% when the stock broke $85 in September 2011 (not one of my best trades).
http://finance.yahoo.com/q?s=EOG
Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.
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