Oil Stock #2 Lukoil (LUKOY)
Lukoil (OTC: LUKOY) is cheap right now. I don’t agree with many of the policies of the Russian government toward foreign investors, but there are signs that things are changing for the better. We have heard this talk from the Russian government before, but now we are beginning to see concrete actions.
The value of Lukoil comes in its easy-to-tap oil reserves that are currently the third largest in the world of any publicly traded company. Not even my favorite CNOOC has that much in oil reserves, so even though investing in Russia carries its risks, the cheap valuation of the 6 P/E is well worth the potential reward from being a long-term shareholder in this oil stock.