Energy Prospectus

Devon Energy (DVN) was in our Sweet 16 for several years before I dropped it last year when I decided to make the S-16 heavily weighted to oil.

I went to a UBS presentation last week and they said DVN was one of their Top Picks going into 2011.

Devon is an incredible success story and, trading at under 6X cash flow per share, appears to have significant upside.

This one is a "Core Holding" quality stock.

Dan

jmho, but DVN is about 2:1 gas:oil...they may have some great gas hedges (I didn't look) but my strategy is to stay away from "gassy" E&P's...and ESPECIALLY US cos...Canadians make more sense to me...

UBS has Devon as one of their 5 "Top Picks" so I want to take a hard look. Remember, just because I add a company to the Watch List doesn't mean I'm recommending it. The Watch List is more my "To Do" list.

Sweet 16 members EOG, NFX (who spoke to us this morning) and XEC are all viewed as "gassers" by the market. IMO they are committed to increasing oil production. I believe they are all undervalued by this market. NFX gave a very impressive presentation this morning. 65% of 2011 gas is hedged at ~$6.00 an they will be increasing oil production by 25% next year, very impressive for a company of this size.