Price The Market Part 29
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Hi, my name is Glen Bradford. I'm having a blast pricing the S&P500. You're invited. Let's take a walk on the wild side. I'll be your guide.
141. Murphy Oil (NYSE: MUR) is a little on the cheap side. Target: $60-$65. Look no further than Bret Jensen when he's opining on this company or any company that he considers worth investing into. He actually knows what he is talking about, unlike practically everyone else who thinks they know a thing or two about valuation. In a nutshell, they are presently trading under their historical valuation.
142. Sunoco Inc (NYSE: SUN) is a tough call. In the long run I think that the differential between WTI and Brent is going to decrease from here. Thus, I favor other oil companies at present because I see this as a headwind for Sunoco. All in all, I see better values elsewhere with a lot less question marks. If you are attracted to turnaround plays, Sunoco might be your thing, but I'm not.
143. Spectra Energy Corp (NYSE: SE) is trading at where everyone says it should as well as within 1% of its all-time high that it set Wednesday December 28 at over $31. Thus, I'm putting it on the sellblock. Never pay face value to own a company. Doing so is foolish. Target: $25-$30. This stock has even gotten ahead of Barclays, who puts their target at $29. Get out before you regret not doing so.
144. Southwestern Energy (NYSE: SWN) has been getting beat up in volatile trading in the last 7 months. My advice would be to buy into this dip and liquidate the rip for an easy $36. Target: $35-$40. People at present are avoiding exposure to natural gas. That's horse sense. I think natural gas has a lot more potential in the next 5 years than the consensus is willing to admit. The shale plays and fracking technologies are where you are going to want to be. Just imagine the impact of people converting their cars en masse to natural gas, because it is actually cost effective to do so at present!
Extra: Vonage (NYSE: VG) looks like a double from these prices. Vonage is about to turn up the cash flow. I figure it's worth $3 fairly easily, but in the meanwhile they are trading at 5x their forecasted future earnings. I don't see what would prevent Vonage from going over $5 from here. Target: $3-$5. That would be a 100% return brought to you from yours truly. Thank me later, but for now I have to run.
Glen and his investors don't hold any positions in any of the companies mentioned.