Wednesday, May 7, 2008

Natural Gas Boom, Oil Sands, Rising Oil Prices, Breakout: Try CNQ, Canadian Natural Resources

What company benefits from all the trends below?

1. Crude oil is zooming.

2. Jim Cramer has proclaimed 2008 the Year of Natural Gas. In Jim Cramer's CNBC Show Mad Money, Jim Cramer expressed his optimism:

Cramer extended his optimism to the entire natural gas sector. With the growth rates for a natural gas drillers averaging 15%, he said investors will be hard pressed to find such high growth in any other sector. He also mentioned the sector's excellent visibility as another plus.

3. Oil Sands Exposure

Over the long term, as crude prices zoom higher, alternative sources of oil need to be found. Canada has the Largest Reserve of Crude Oil, and extracting the Oil from Canadian Oil Sands becomes a much more profitable experience. Right now, oil sands account for 50% of Canada's Production. By 2010, it is estimated to account for 70%.

This particular company has a Horizon Oil Sands Project and Phase 1 of the project is almost 100% complete.

4. Breaking Out, 52 week high

As of May 6, 2008, this company has broken out to a multi-year high.

The Company?

So what is the Company? The Company is Canadian Natural Resources (CNQ), and this company benefits from all the trends above. It has a forward PE of 14.5.

Canadian Natural Resources (CNQ) is a company worth looking into.

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