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PetroKazakhstan Hits a New All-Time High
The ADR Alert
Friday July 30, 2004
By Alexander Green, Investment Director
Email – #22
** PetroKazakhstan Hits a New All-Time High
Oil prices hit a record high this week.
That may be bad news when you visit the pump. But it sure isn’t hurting our shares of PetroKazakhstan (NYSE: PKZ) any.
PKZ jumped 8% yesterday alone – on more than four times normal volume – to a new all-time high.
The reason? Yesterday PetroKazakhstan reported second quarter profit skyrocketed 78% due to rising oil prices and – more importantly – rising oil output. (Oil production has risen to 151,104 barrels a day from 145,066 a day a year ago.)
The Canadian company – whose operations are solely in Kazakhstan – earned $122 million, or $1.51 a share, up from $68.4 million a year earlier.
PKZ has also just completed a major stock buyback (4 million shares) – and is aggressively hunting for fresh acquisitions, even outside Central Asia.
PetroKazakhstan is up 148% over the last year, making it among the best-performing issues in Canada’s oil and gas group.
But this stock still has a lot to like. The company is trading for just 6.5 times earnings – who says there are no cheap stocks left out there? – and management is earning an extraordinary 74% return on equity.
In short, keep buying.
Fuji Photo Film (Nasdaq: FUJIY) also released earnings in Japan this morning. I’ll have a full update for you – along with a new recommendation – early next week.
If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or 410.223.2679 (e-mail: viptrader@oxfordclub.com), or contact Pillar One Advisor Greg Galloway at 800.438.3040 or 407.667.4729.
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Stock: Novo Nordisk (NYSE: NVO)
Country: Denmark
Current Price: $50.85
Comment: Buy. Sell stop is $44.
Stock: Yanzhou Coal (NYSE: YZC)
Country: China
Current Price: $60.48
Comment: Buy. Sell stop is $45.
Stock: Smith & Nephew (NYSE: SNN)
Country: Britain
Current Price: $50.88
Comment: Buy. Sell stop is $45.
Stock: Banco Bilbao (NYSE: BBV)
Country: Argentina
Current Price: $13.33
Comment: Buy. Sell stop is $10.75.
Stock: Fuji Photo (Nasdaq: FUJIY)
Country: Japan
Current Price: $30.15
Comment: Buy. Sell stop is $25.
Stock: Diageo (NYSE: DEO)
Country: Britain
Current Price: $50.09
Comment: Buy. Sell stop is $42.
Stock: PetroKazakhstan (NYSE: PKZ)
Country: Canada
Current Price: $32.25
Comment: Buy. Sell stop is $24.
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Bio:
Alexander Green is the Investment Director of The Oxford
Club. A Wall Street veteran, he has over 16 years
experience as a research analyst, investment advisor, and
professional portfolio manager. Mr. Green is also
considered one of the most talented financial writers in
the business. He’s been featured on “The O’Reilly Factor,”
profiled by Forbes and Marketwatch.com, and has written for
Louis Rukeyser and several other leading financial
publications. He currently writes and directs The Oxford
Club Communiqué, the Oxford Insight e-letter, and four
elite trading services: one focused on momentum stocks,
another focused on companies with significant insider
buying, another dedicated to international growth stocks
and another focused on short-selling fundamentally flawed
companies. Mr. Green is also a top-rated speaker at
financial conferences around the country.
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