Sweet 16 recommended by JPMorgan

[dan_s]

"Key oil stock calls: Given our expectation that oil markets could recover in
2016, we are constructive on stocks with franchise assets at the low end of the
U.S. cost curve. That said, our valuation work utilizes the futures strip as our
base case and does not bake in recovery optimism. Among large caps, we favor
Concho (CXO), Continental (CLR), and Pioneer (PXD) given their oil
leverage and noteworthy resource catalysts. Among SMID caps, our top picks
are Newfield (NFX), Parsley (PE), and PDC Energy (PDCE)."

I really like PDCE, which has been on my radar screen for months now. Just not enough time to look at all of them.

JPMorgan is bearish on natural gas, but they do recommend a few "gassers".

"We believe EQT (EQT), Gulfport (GPOR), and Memorial
Resources (MRD) are best positioned to navigate the turbulent gas macro given
“core of the core” positions, very strong balance sheets, noteworthy resource
catalysts, and attractive relative valuations. We are sanguine about infrastructure
improvement in the Southern Marcellus/Utica and expect Antero (AR) to derate
as investors focus on the margin squeeze from its higher cost transportation
portfolio and its outspend in a “lower for longer” scenario.