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3 Bargain Energy Stocks to Buy Amid Weak Oil Prices

Focus on the smaller players that have taken a hit in 2014

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Energy Stocks to Buy: Rowan Companies (RDC)

RowanCompanies185 3 Bargain Energy Stocks to Buy Amid Weak Oil PricesRowan Companies (RDC) has seen its shares fall a little more than 11% so far in 2014 and the shares are back down to around 80% of book value. Investors are bearish on the potential for the offshore oil and gas contract drilling services provider, but Rowan has newer vessels than most of its competitors and is in a strong position in a weak market.

I have done very well over the years buying Rowan at 80% or so of book value and expect a similar profitable result this time

The larger energy stocks like Exxon Mobil (XOM) and Chevron (CVX) have also dropped by double digits so far this year, but it’s hard to argue that they cheap at these levels. Focusing on the smaller production and oil services companies should prove far more profitable during the current weak market conditions.

As of this writing, Tim Melvin was long SFY, PWE and RDC.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/3-bargain-energy-stocks-to-buy/.

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