Devon Energy (DVN)

[dan_s]

Devon has been on my long To Do List for months.

Read This: http://seekingalpha.com/article/2238233 ... s-earnings

I thought about moving it into the Sweet 16 two months ago. Take a look at the chart and you will see that I screwed up by not doing so, but I just couldn't decide which current member to demote. After this week's luncheon I am finally going to update my forecast model and I'm 99% sure it will be moved into the S-16. I will probably just move GTE back to the Small-Cap Growth Portfolio. I still believe GTE has huge potential in both Columbia and Peru.

Devon has been focused on increasing their liquids production and they have done a darn good job. Their production profile is much better balanced today. But they still have a lot of natural gas reserves that I think will draw some attention later this year. If you saw today's comments by Raymond James about natural gas you know that Wall Street is starting to figure out that there is almost zero chance of U.S. gas storage being high enough in November to avoid regional shortages this coming winter. Believe me, we won't need to wait until November to see higher gas prices. The utilities and speculative traders will start bidding up gas in July.

EnLink Midstream Partners, L.P. (ENLK) is also a strong candidate for our High Yield Income Portfolio.