Wall Street Is Surging: Where Can You Find Value?
May 14th 2013 11:02AM
Updated May 14th 2013 12:05PM
As a value investor, one of my top rules comes from a quote by Warren Buffett warning investors not to buy into hype: "Be fearful when others are greedy and greedy when others are fearful."
Following this advice, its time to dig deep to find value in today's bull market. Even The Economist featured a cover this week with a menacing golden bull charging through a concrete wall with the words "Wall Street is back".
To find long-term value in surging markets sometimes its best to dive into the discount bin. In the video below, energy analysts Joel South and Taylor Muckerman look into the lagging energy sector to find a rare gem in Devon Energy . This exploration and production company is trading significantly under its net asset value as the market continues to punish energy producers who hold significant natural gas assets in addition to oil sands acreage.
With natural gas spot prices moving higher, in addition to Devon's 12%-20% oil growth this year, Devon presents a unique value proposition. In addition, the company has an incredible balance sheet which offers investors a safe haven while the company grows its liquids production over the long term.
While Devon Energy is a rare value play in today's market, it is not the only way to play the energy sector. The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.
In this video we state that Whiting Petroleum is growing its heavy-oil refining capacity, but we meant to say Whiting Refinery. The Motley Fool regrets the error.
The article Wall Street Is Surging: Where Can You Find Value? originally appeared on Fool.com.Joel South owns shares of Devon Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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