What’s MM favourite energy stocks?
What are the best old energy stocks (oil, coal and gas) in order, from Australia and the USA and does old energy have several years upside?
Thank again! KimThe Latest Q&A
Answer
Hi Kim,
This is a huge question so please excuse the relative brevity, by definition in most cases we own the stocks we prefer:
- Locally we remain fans of Woodside Group (WDS) but it feels a touch tired as recession worries increase.
- MM remains long Exxon Mobil (XOM US) in our International Portfolio looking for ~20% upside.
The Coal Sector is the area that’s got away from us for now, we are bullish and not long which is frustrating having held a great position in WHC from $1.61 last year only to sell above $4.00 i.e. we’ve been too pedantic on re-entry levels in hindsight.
- Our preferred pick is still Whitehaven Coal (WHC) with our ideal entry now ~$8.50.
We believe that “old energy” stocks remain well positioned for another five years or so as CAPEX falls away dramatically while at the same time “new energy” is likely to take far longer than many hope to deliver people everyday requirements.
